ANNEX R PASSPORT TEMPLATE

Transcription

1 ANNEX R PASSPORT TEMPLATE CONTENTS 1. Project title 2. Project description 3. Proof of project eligibility 4. Unique Project Identification 5. Outcome stakeholder consultation process 6. Outcome sustainability assessment 7. Sustainability monitoring plan 8. Additionality and conservativeness deviations Annex 1 ODA declarations

2 SECTION A. Project Title [See Toolkit 1.6] Title: 5MW Solar PV Power Plant by AEPL Date: 14/10/2016 Version no.: 04 SECTION B. Project description [See Toolkit 1.6] Project start date: The start date of the project activity is 30/08/2011, it corresponds to date when the contracts for offshore supply, onshore supply, civil works and onshore services for the project activity were all signed on the same day. The main purpose of this project activity is to generate clean form of electricity through renewable solar energy source. M/s Amrit Energy private Limited was the project participant of the proposed project activity at the time of CDM registration. However the project activity has been acquired by Fortum Amrit Energy Pvt Ltd. and currently ownership is with Fortum Amrit Energy Pvt Ltd. The project activity involves installations of 5 MW solar photovoltaic technology based power project in Village-Gulabpura in Bhilwara district of Rajasthan. The electricity generated from the project activity will be exported to North-East-West-North East (NEWNE) Grid and sold to NTPC Vidyut Vyapar Nigam Limited (NVVN) under a power purchase agreement. AEPL is using thin film Cadmium Telluride (CdTe) solar photovoltaic technology for power generation. The technical specifications of power plant are given below: Solar PV Module: Solar PV modules of total capacity MW (DC) manufactured by First Solar have been selected for the project activity: The details of Modules installed are as follows: Parameters Value Manufacturer First Solar Cell Type Thin film Cadmium Telluride (CdTe) Model FS-377 FS-380 FS-382 Modules Wattage 77.5 Wp 80.0 Wp 82.5 Wp No. of modules 40,558 22,344 5,873 Total number of modules 68,775 Invertors: 800kVA, VDC/360V AC capacity invertors made by SMA (Sunny Central -800 CP) have been selected for the project activity. Power Evacuation: The direct current from the photo voltaic modules will be converted into alternating current by the inverters. This exportable power will be stepped up to 33kV by three 2000KVA, 33KV/415V transformer (manufactured by Kirloskar) to be located in the proposed 33kV plant switchyard and paralleled with the 220/132/33kV substation at Gulabpura Village.

3 Plant Load Factor: 20.84%. Technical Life: The technical life of the solar PV Power plant is 25 years. The generation of power from solar is a clean technology as there is no fossil fuel fired or no GHG gases are emitted during the process. Therefore, the project activity led to reduction in GHG emissions as it displaces power from fossil fuel based electricity generation in the regional grid. The annual average GHG emission reduction through this project activity is 8,697 tco2e. The project leads to reduction in GHGs and achieve sustainable development of the host country. Contribution of project activity to sustainable development: The project investors believes that the project activity has contributed to the sustainable development as discussed below according to the indicators stipulated by Ministry of Environment and Forests, Govt. of Ministry of Environment and Forests, Govt. of India has stipulated the following indicators for sustainable development in the guidelines for CDM projects: Social well being: The proposed project would lead to generation of business opportunities and employment in the region thereby contributing towards social upliftment through direct and indirect benefits. The project activity in its execution will lead to development of infrastructure in the region and at the same time promote business in the region through the improvement in electricity generation capacity of the grid. Economic well-being: The project activity leads to an investment in the region accompanied with business and employment benefits along with improvement of grid supply which otherwise would not have happened in the absence of project activity. The clean electricity generated through solar power by the project activity would be fed into the NEWNE regional grid thereby improving the availability of electricity in the region. This would provide a better scenario for local industries and businesses to improve their production capacities thereby contributing towards the overall economic development of the region. Environmental well being: The project activity employs solar power for generation of electricity thereby displacing fossil fuels which are being rapidly consumed to meet the growing demand of electricity in the country thus contributing towards reduction in GHG emissions. Solar power projects generate no end products in their operation in the form of solid waste (ash etc.) compared to alternative modes of power generation (e.g. coal based on which the Indian grid is primarily dependent). Hence the project activity is a cleaner source of power generation and is encouraging greener practice of power generation. The solar power project indirectly is contributing towards conservation of non renewable resources which are under the constant threat of depletion due to excessive and rapid growth of energy demand. The growing threat of global warming which is a key concern is also addressed due to renewable energy use thereby mitigating climate change. Technological well being:

4 The project activity uses thin film solar PV technology for power generation thereby demonstrating the viability of solar based renewable energy generation in the region, which is fed into the nearest sub-station (part of the NEWNE Regional Grid), thus increasing energy availability under the service area of the substation. Hence the project leads to technological well being. The Project falls as Category C as per ADB s Environmental Categorization criteria. The project activity does not have any adverse impacts and EIA is not required for this project activity. As a part of Sustainability Policy, Fortum wants to excel in sustainability and believes that balanced management of economic, environmental and social responsibility brings us a competitive advantage, is beneficial to our stakeholders and is necessary for the development of future societies. We continuously improve our sustainability performance by assessing our impacts and by addressing sustainability throughout the value chain. Economic responsibility For Fortum, economic responsibility means competiveness, performance excellence and marketdriven production that creates long-term value and enables sustainable growth. We promote marketbased policies and measures that help to solve global sustainability challenges and targets in the most efficient way. We understand that our operations provide both direct and indirect economic benefits to our stakeholders, and we continuously review our impact and the well-being generated. Environmental responsibility Fortum s aim is to provide our customers with environmentally benign energy products and services. We are committed to environmentally sound business practices and to the responsible use of natural resources. We take into account the life-cycle of our energy products and continuously aim to mitigate our environmental impact by utilising best practices and best available technologies. We want to minimize environmental non-compliances and incidents caused by our operations. Mitigation of climate change and the preservation of natural resources are key priorities in our environmental approach. Our competence in CO2-free hydro and nuclear power production and in energy-efficient combined heat and power production support the development of low-carbon societies. Social responsibility For Fortum, excellence in safety is the foundation of our business and safe performance is a sign of professionalism. We believe that all work-related injuries, illnesses and safety incidents can be prevented. Fortum s goal is to provide a safe working place for all, and everyone is expected to take responsibility for safety. We have common targets and strive for continuous improvement. Fortum has indirect responsibility for its supply chain. We conduct business with viable companies that act responsibly and comply with the Fortum Code of Conduct and Supplier Code of Conduct. Social responsibility also includes being a good corporate citizen and taking care of the community around us. We believe that our innovations and the secure supply of low-carbon power and heat will enable social development and increase overall well-being.

5 Sustainability embedded in business operations Excellence in sustainability is incorporated in the company strategy and is an integral part of business operations. To implement this sustainability policy, Fortum: - complies with legal, regulatory and contractual requirements - continuously improves sustainability target setting and performance - applies certified environmental, health and safety management systems in all operations - assesses sustainability performance when selecting suppliers, contractors and business partners - includes the sustainability assessment as part of an investment evaluation and approval process - engages stakeholders in active dialogue - is committed to transparent communication and reports annually on its sustainability performance RESPONSIBILITIES Fortum has a line responsibility in sustainability governance. The management of the divisions and the Group functions, and ultimately the President and CEO and the Board of Directors, are accountable for sustainability at Fortum. Fortum Management Team (FMT) leads the Sustainability Policy and decides on the company-level sustainability target setting that guides annual business planning. The divisions define their detailed sustainability targets, develop action plans in accordance with corporate-level targets, and ensure inclusion of these in the business goals. The divisions compare their sustainability performance against the targets, monthly and quarterly. Corporate Sustainability is responsible for coordinating and developing sustainability at the Group level. This includes the Sustainability Policy and related corporate-level instructions and manuals. Corporate Sustainability is also responsible for monitoring the policy implementation and for performance reporting on a monthly, quarterly and annual basis. Corporate Sustainability leads sustainability networks in order to develop common goals, targets, instructions and procedures in the whole company. All managers and superiors have responsibility for implementing and controlling sustainability management and performance within their respective responsibility areas. This includes the assessment and mitigation of related risks. All Fortum employees and external persons working for Fortum have the responsibility to comply with the Fortum Sustainability Policy and related laws, regulations and instructions. Fortum s suppliers are expected to follow the principles set out in the Fortum Code of Conduct and Supplier Code of Conduct. SECTION C. Proof of project eligibility C.1. Scale of the Project [See Toolkit 1.2.a] Please tick where applicable:

6 Project Type Large Small C.2. Host Country [See Toolkit 1.2.b] India C.3. Project Type [See Toolkit 1.2.c and Annex C] Please tick where applicable: Project type Yes No Does your project activity classify as a Renewable Energy project?

7 Does your project activity classify as an End-use Energy Efficiency Improvement project? Does your project activity classify as waste handling and disposal project? Please justify the eligibility of your project activity: The Renewable Energy Supply category is defined as the generation and delivery of energy services (e.g. electricity) from non-fossil and non-depletable energy sources. The Project involves generation and delivery of electricity generated from solar energy sources, so the Project belongs to the Renewable Energy Supply category. The type of the Project is not listed in specific guidance, Annex C of gold standard toolkit, thus there is no specific eligibility criteria for the project activity. Pre Announcement Yes No Was your project previously announced? Explain your statement on pre announcement The project activity has been announced for CDM stakeholder consultation with the consideration of potential carbon credit revenues from CDM mechanisms. The project proponent has considered potential carbon credit benefits from the very conceptualisation stage of the proposed project activity. This is further evident from the following information regarding prior CDM consideration notifications: The start date of the project activity is 30/08/2011 (earliest date when the contracts for offshore supply, onshore supply, civil works and onshore services for the project activity were all signed on the same day.), i.e., after 02/08/2008. The project proponent has sent written notifications of developing the project activity to the Indian DNA on 15/11/2011 and UNFCCC on 16/06/2011. The prior consideration notification was sent 180 days before the Purchase order for the project activity. Project is registered on 12/04/2013 through CDM registration process having CDM registration number is The project UNFCCC view page can be seen at below web link C.4. Greenhouse gas [See Toolkit 1.2.d] Greenhouse Gas

8 Carbon dioxide Methane Nitrous oxide C.5. Project Registration Type [See Toolkit 1.2.f] Project Registration Type Regular Pre-feasibility assessment Retroactive projects (T.2.5.1) Preliminary evaluation (eg: Large Hydro or palm oilrelated project) (T.2.5.2) Rejected by UNFCCC (T2.5.3) If Retroactive, please indicate Start Date of project activity dd/mm/yyyy: The Start date of the project activity is 30/08/2011 (earliest date when the contracts for offshore supply, onshore supply, civil works and onshore services for the project activity were all signed on the same day.). Since the project has applied for Retroactive validation under GS, thus the crediting period under the GS mechanism shall be maximum of 2 years prior to the GS registration date. SECTION D. Unique project identification D.1. GPS-coordinates of project location

9 [See Toolkit 1.6] The project is located in village Gulabpura, District Bhilwara of Rajasthan state, India. The details of GPS co-ordinates of project activity is mentioned below Latitude : North ( deg N) Longitude : East ( deg E) Explain given coordinates The project site is located in Gulabpura village in Bhilwara district of Rajasthan. The nearest railway station is at Vijay Nagar, which is 3 Km from the project location. The nearest airport at Udaipur is 220 Km from the project location. The nearest National Highway NH78 is just 7 Km away from Gulabpura. D.2. Map [See Toolkit 1.6]

10 SECTION E. Outcome stakeholder consultation process Project location E.1. Assessment of stakeholder comments [See Annex J] [See Local Stakeholder Consultation Report B.5 and insert table from C.3.iii Assessment of all comments. Insert a summary of alterations based on comments] It s not necessary for the retroactive project to take Local Stakeholder Consultation; the Stakeholder Feedback Round has been organized and corresponding information is available in the below section. However, LSC process has been carried out considering CDM project activity. Amrit Energy Private Limited ( earlier PP) invited stakeholders to a meeting to explain the UNFCCC CDM process and proposed 5 MW Solar PV Power Project. Stakeholders were invited for the meeting through personal invitation letters dated 24th January, 2012 and thus, ten days of time was provided to the stakeholders before the stakeholder consultation meeting. Stakeholders meeting for the CDM project on the 5 MW Solar Photovoltaic Power Plant of AEPL took place on 3rd February, 2012 at the project site (Gulabpura village in Hurda Tehsil of Bhulwara district, Rajasthan). Approximately 28 villagers from nearby villages Gulabpura, Vijaynagar, Badla and Rupaheli attended this meeting. A record of the people attending the meeting was maintained and all comments from the

11 stakeholders received during the meeting were recorded and compiled in the minutes of meeting. The meeting was presided over by Mr. Vivek Rai (General Manager, AEPL), who welcomed the gathering and introduced the company and its initiative to those present. He gave a brief description about initiative by Amrit Energy Private Limited in the solar power generation sector. He explained to the stakeholders about how the project will be beneficial for the people in the surrounding areas. He invited Mr. S.S. Parmar (O&M Consultant) to describe the technical aspects of the project activity. He informed the stakeholders present at the meeting about the capacity of the solar PV power project and the technology proposed to be employed for the power generation. He further pointed out the benefits of renewable energy power generation as compared to the conventional sources of power based on fossil fuels such as coal and oil. CDM consultant present at the meeting briefed the stakeholders on the possible threat of climate change caused due to increased concentration of Greenhouse gases in the atmosphere. He further briefed the gathering about Kyoto Protocol, Clean Development Mechanism and its associated benefits. He described the project activity in relation to CDM and discussed the benefits of implementing the project. He described that the project, if implemented, would result in reduction of Greenhouse gases in the atmosphere by feeding power to the fossil fuel fired grid system. Thus, he explained that the project activity would be beneficial to the environment and the society as a whole. Mr. Rai then invited the stakeholders to share their queries, suggestions and concerns with respect to the proposed CDM project activity and replied to the same. Following questions were raised by the stakeholders: Sl. No. Question Stakeholder Answer 1. Will the operation of the Radheshyam Since the electricity generation plant result in increased Jangid (Village: is dependent upon the sun rays temperature in the Gulabpura) falling on the PV modules, there surroundings? will be no generation during night time and the generation 2. How much electricity will be generated from this solar PV power plant? Md. Iliyas (Village: Vijaynagar) will be less during cloudy days. The operation of the power plant will result in approx. 9,128 MWh of electricity. In simple terms, it could light up electric bulbs of 100W capacity for the whole year long. The participants expressed their positive feedback on the initiative taken up by the project promoter. They also expressed their goodwill for the environment friendly initiative. Finally, Mr. Rai thanked all the participants for attending this meeting on invitation from Amrit Energy Private Limited. He also expressed that AEPL is committed to its social and environmental obligations and invites various participants to keep on giving their feedback on a continuous basis so that if any improvements are called for, those could be implemented in various operations of the project. All the stakeholders were appreciative that the CDM project activity in their locality is contributing to a global cause and they commended the AEPL management for their initiatives in the area of solar power development. The participants had raised various questions mostly related to the benefits of

12 the project for the nearby villagers and any harmful effects from commissioning of the plant. All the questions were satisfactorily explained to the participants by the project promoter. The project promoter explained about the technical details, feasibility of the project activity and its impacts on environment. The stakeholders appreciated the project promoter for the environmental friendly measures. Considering the comments made by the stakeholders, no significant negative impacts due to the project activity had been identified. The above LSC process has been already validating during CDM validation of project activity and project is registered. E.2. Stakeholder Feedback Round Please describe report how the feedback round was organised, what the outcomes were and how you followed up on the feedback. [See Toolkit 2.11] The SFR has been planned from 26/02/2016. The has been sent to relevant stakeholders like NGOs, DNA officials, Gold Standard officials along with project documents The process for the SFR is as follows; E mail and Invitations send to relevant stakeholders The non technical summary of project activity along with Registered PDD, web link of UNFCCC web page for the same registered project in CDM, draft GS passport submission to relevant stakeholders, GS Public view section web link. Grievance Mechanism Feedback/Questions from Stakeholders Answers for questions received from stakeholders during online SFR process. Identification of Stakeholders: The Stakeholder feedback round has been planned to consider and received feedback from the possible stakeholders to the project, i.e. NGOs. Apart from these, the stakeholders as identified by Gold standard Board, i.e. Gold standard partnered NGOs in India and DNA of India (MoEF). Invitations to Stakeholders: The Stakeholder feedback round will be done online method. invitations were sent to GS partnered NGO s and MoEF on 26/02/2016. The follow up e mail was sent on 31/03/2016 and comments are requested from these stakeholders. The relevant documents of project activity like GS

13 passport, project Technical summary were made available during Stakeholder feedback round. The public notices were put up at gram panchayat offices of nearby village. The Mandatory Continuous Input & Grievance Expression Methods applied are described as follows; Methods Details Reason for Selection Continuous Input/Grievance Expression Process Book Grievance Register to be maintained at office of PP and O&M site office at Project location. Project Site Address: Fortum Amrit Energy Private Ltd., Gulbpura, The- Hurda, Bhilwara, Rajasthan PP office Address: Fortum Amrit Energy Private Limited, Building No#5, Tower-A, Floor#7, DLF Cyber City Phase-II, Gurgaon, Haryana, India The project activity site office is appropriate publicly accessible location at which local stakeholders can provide their feedback on the project. This location is also conducive to continuous and regular checks for stakeholder comments. Also Grievance Register has been kept at PP office so that any stakeholder can give their comments to PP. Telephone access Mr. Awadhesh Jha, an employee of Fortum who is based at the project location is responsible and his mobile number shall be available for any stakeholder to comment. For those who are unable to travel to site or are not literate, they may contact the Project Implementer via telephone. Persons dialing this telephone number will have access to a Project representative who speaks both English and the national language, Hindi. Stakeholders have also been provided with a telephone number for the regional Gold Standard Representative in

14 India. Internet/ access 2 address: Fortum: 1. awadhesh.jha@fortum.com 2. Gold Standard: info@goldstandard.org Two id of the project Implementer has been provided for continuous input / grievance for the convenience of stakeholders with internet access. The table for recording input / grievance is also available on the Project Developer s website in both English and Hindi, and an address for the Gold Standard s regional manager has also been provided. Nominated Independent Mediator No Independent mediator is assigned. However, Mr. Mr. Awadhesh Jha, an employee of Fortum has been assigned as the point of contact for all the local issues. The use of a Nominated Independent Mediator is not being employed. As the use of the process book, telephone and internet will sufficiently capture feedback as necessary. However a local employee shall be available in case stakeholders have any comments. The monitoring of project shall be carried out periodically and the auditors would be visiting and meeting the stakeholders and in case any concerns the same can also be discussed with them. DOE who will be appointed as the auditor for the project, will interact with stakeholders and observe their views regarding the SFR process and the project activity. Question/Comments session: There are no comments received during 2 months period of stakeholder feedback round.

15 Conclusion: There are no comments received during 2 months period of stakeholder feedback round. Thus project activity has positive impact for sustainable indicator parameter. E. 3. Discussion on continuous input / grievance mechanism [See Annex W] Discuss the Continuous input / grievance mechanism expression method and details, as discussed with local stakeholders. Continuous Input / Grievance Expression Process Book Method Chosen (include all known details e.g. location of book, phone, number, identity of mediator) Grievance Register to be maintained office of PP and project site office at Project location. Justification The project site office is appropriate publicly accessible location at which local stakeholders can provide their feedback on the project. This location is also conducive to continuous and regular checks for stakeholder comments. Telephone access Mr. Awadhesh Jha, an employee of Fortum who is based at the project location is responsible and his mobile number shall be available for any For those who are unable to travel to site or are not literate, they may contact the Project Implementer via telephone. Persons dialing this telephone number will have access to a

16 stakeholder to comment. Project representative who speaks both English and the national language, Hindi. Internet/ access Nominated Independent Mediator (optional) 2 address: 1. Fortum: 1.awadhesh.jha@fortum.com 2. Gold Standard: info@goldstandard.org No Independent mediator is assigned. However, Mr. Awadhesh Jha, an employee of Fortum has been assigned as the point of contact for all the local issues. Stakeholders have also been provided with a telephone number for the regional Gold Standard Representative in India. Two id of the project Implementer has been provided for continuous input / grievance for the convenience of stakeholders with internet access. The table for recording input / grievance is also available on the Project Developer s website in both English and Hindi, and an address for the Gold Standard s regional manager has also been provided. The use of a Nominated Independent Mediator is not being employed. As the use of the process book, telephone and internet will sufficiently capture feedback as necessary. However a local employee shall be available in case stakeholders have any comments. All issues identified during the crediting period through any of the Methods shall have a mitigation measure in place. The identified issue should be discussed in the revised Passport and the corresponding mitigation measure should be added to sustainability monitoring plan in section G. SECTION F. Outcome Sustainability assessment F.1. Do no harm Assessment [See Toolkit and Annex H] Fortum has Sustainability Policy at corporate level Fortum Sustainability Policy is built on the Fortum Code of Conduct and Fortum Supplier Code of Conduct. The Fortum Code of Conduct discloses the international charters, agreements and recommendations that Fortum endorses in the area of sustainability. This policy is supported by the Fortum Corporate Relations and Communications Policy

17 and the Fortum Human Resources Policy. Implementation of the Fortum Sustainability Policy is supported by more detailed environmental, health and safety, human resources and purchasing instructions The web links for this sustainability policy are as below As regards management systems, all (100%) Fortum s operations are ISO certified and 75% OHSAS certified. In India we have two solar plants for which are targeting to get it certified under ISO and OHSAS soon. Supplier Code of Conduct The purpose of this Supplier Code of Conduct is to define the basic sustainability requirements placed on Fortum s suppliers. The Supplier Code of Conduct is based on the principles of the United Nations Global Compact and is divided into four sections: business principles, human rights, labour standards and environment. Fortum has signed the United Nations Global Compact initiative and become a registered member as of 30 June The Supplier Code of Conduct is applicable to all Fortum s operations in every part of the world and to any supplier that delivers goods, services, works and other business activities to Fortum. All of Fortum s suppliers are obligated to implement the principles of the Supplier Code of Conduct across their whole business. Suppliers are also responsible for ensuring and monitoring that their subsuppliers and sub-contractors comply with this Supplier Code of Conduct. Fortum s suppliers shall confirm compliance with this Supplier Code of Conduct by continuously documenting compliance, providing information to Fortum, upon request, and allowing audits at site by Fortum or by an accredited auditor company representing Fortum. The business Principles which covers under code of conduct consists of Business Principles which includes Legal Compliance, Anti-Corruption and anti- bribery and Human Rights Labour Standards which includes Freedom of Association, Forced labour, Wages and working hours, child labour and young workers, Non-discrimination, health and Safety, Prevention of alcohol and Drug use at work Environment which includes comply of environmental laws and regulations and to encourage diffusion of environmentally friendly technologies. The above mentioned company policy indicates that safeguarding principles has been followed and there is no any risk involved. Safeguarding principles Description of relevance to my project Assessment of my project risks breaching it (low/medium/high) 1. The project respects The Project is not in conflict with the Low Mitigation measure

18 internationally proclaimed human rights including dignity, cultural property and uniqueness of indigenous people. The project is not complicit in Human Right Abuses economic livelihood of the local community. The Project does not cause any human rights abuse and respects internationally proclaimed human rights issue. The India has ratified the United Nations Human Rights Rules and regulations. The India ratified the same as per web link 1 given below applicable The project adheres to the host country s commitment to: Universal Declaration of Human Rights (UDHR) International Covenant on Economic, Social and Cultural Rights, India Accession 10/04/79 2 International Covenant on Civil and Political Rights India Accession The project does not involve and is not complicit in involuntary resettlement The project does not involve any resettlement. India ( the Ministry of Rural development have the The National Rehabilitation and Resettlement Policy, The project activity will not have any major impact on land use patterns. In accordance with Article 1 of the International Covenant on economic, Social and Cultural Rights the program does not complicit in involuntary resettlement No Expropriation has been conducted on any private land involved in project activity. Land has Low applicable and and

19 been purchased by PP directly from the owner of the land through direct negotiation of commercial terms. There has not been involvement of any government agency in the acquiring the land. The land is acquired on mutual consent between private land owner and PP, thus there are no any issues of dissatisfaction of private land owner No cultural heritage is observed on Low 3. The project does not involve and is not complicit in the alteration, damage or removal of any critical cultural heritage the project site, thus no harm observed. Compliance with India's commitment to International Covenant on Economic, Social and Cultural Rights will ensure applicable no damage to critical cultural heritage. 4. The project respects the employees freedom of association and their right to collective bargaining and is not complicit in restrictions of these freedoms and rights This project involves a lot of contribution from employees all the time. Further, India is a party to ILO and forming employee associations is commonly practiced in India. The project is in compliance with the laws of Government of India and there is no any restriction for freedoms and right. Low applicable Forced labor is an illegal activity in Low the host country and the local labor applicable compliance takes into account of the 5. The project does not involve and is not complicit in any form of forced or compulsory labour same. Further, India is a party to ILO and forced labour is illegal in India. The project does not employ any form of forced or compulsory labour. Employees can quit their Services at any time. The project complies with the Factories Act in India that prohibits forced or

20 compulsory labour 4 Indulgence in Child labor is an illegal Low activity in the host country and the applicable local labor compliance takes into account of the same. Further, India 6. The project does not employ and is not complicit in any form of child labour is a party to ILO and Child labour is illegal in India. The project neither employs nor intends to employ child labour. As per the laws prevailing in India, the Child Labour (Prohibition & Regulation) Act 5 prohibits employment of children in certain specified hazardous occupations The project Proponent does not Low indulge in discrimination on basis of applicable gender, race, religion, sexual orientation. The project will abide by the 7. The project does not involve and is not in complicit in any form of discrimination based on gender, race, religion, sexual orientation or any other basis Factories Act that prohibits any form of discrimination and is in accordance with the Convention on the Elimination of All Forms of Discrimination against Women (CEDAW), India ratified it on 09/07/1993 with certain reservations 6 And International Convention on the Elimination of All Forms of Racial Discrimination; India ratified the convention on 03/12/1968 with certain reservation 7 8. The project provides workers with a safe The project proponent has implemented Environment Health Low applicable and and

21 and healthy work environment and is not complicit in exposing workers to unsafe or unhealthy work environments Safety and Social guideline which takes into account the same. The project provides safe and healthy work condition to the employees. The programme complies with the Factories Act and provides safe and healthy work environment 8 The project has received Low environmental clearance from the applicable State Pollution control Board. Further the EHSS guidelines takes into account the same. 9. The project takes a precautionary approach in regard to environmental challenges and is not complicit in practices contrary to the precautionary principle. The project does not lead to release of any hazardous substances that pose threat to the environment. Rather it aims at reducing the air pollution that is prevalent due to use of fossil fuel power plants. The project promotes environmental protection through the use of cleaner technology. The project abides by the stipulations of the Indian Environment Protection Act The project does not involve or complicit in significant conversion or degradation of critical natural habitats including those that are (a) legally protected, (b) officially proposed for protection, (c) identified by authoritative sources for their high The project proponent has implemented Environment Health Safety and Social guideline which takes into account the same. The project activity does not pose any harm to the natural habitats of the native species Low applicable

22 conservation value or (d) recognised as protected by traditional local communities 11. The project does not involve and is not in complicit in corruption Additional relevant critical issues for my project type Indulgence in corruption is an illegal activity in the host country and the local labor compliance takes into account of the same. The project abides by the United Nations Convention Against Corruption. India ratification Description of relevance to my project Low Assessment of relevance to my project identified relevant No risk (low/medium/high) applicable Mitigation measure required F.2. Sustainable Development matrix [See Toolkit and Annex I] Fortum has Sustainability Policy at corporate level Fortum Sustainability Policy is built on the Fortum Code of Conduct and Fortum Supplier Code of Conduct. The Fortum Code of Conduct discloses the international charters, agreements and recommendations that Fortum endorses in the area of sustainability. This policy is supported by the Fortum Corporate Relations and Communications Policy and the Fortum Human Resources Policy. Implementation of the Fortum Sustainability Policy is supported by more detailed environmental, health and safety, human resources and purchasing instructions The web links for this sustainability policy are as below As regards management systems, all (100%) Fortum s operations are ISO certified and 75% OHSAS certified. In India we have two solar plants for which are targeting to get it certified under ISO and OHSAS soon. The report on Developmental Impacts and Sustainable Governance Aspects of Renewable Energy Projects prepared by MNRE dated September This report clearly mentioned that Solar farms 10

23 operations do not result in direct air pollution, noise pollution. Please refer below web link for the same. There are no any significant impacts due to implementation of project activity. Based on above evidences, the score mentioned below are justified. Insert table as in section D3 from your Stakeholder Consultation report (Sustainable Development matrix). Indicator Mitigation Relevance to Chosen parameter and Preliminary measure achieving MDG explanation score Gold Standard If relevant Check Defined by project Negative indicators of copy developer impact: sustainable mitigation g and score - in development. measure case negative from "do.org impact is not no harm" fully mitigated table, or Describe how score 0 in case include your indicator is impact is mitigation related to local planned to be measure MDG goals fully mitigated used to No change in neutralise a impact: score score of 0 Positive impact: score + Air quality Required Goal 7 Ensure Environmental sustainability; Target 7.A - Integrate the principles of sustainable development into country policies and programmes and reverse the loss of environmental resources Operation Phase: Project activity leads to electricity production by solar power, which improves the air quality as compared to those by the fossil fuel dominated grid mix. Hence the parameter to be monitored for this indicator is the ambient air quality measurement. Construction Phase: The impact during the construction phase shall localized and temporary. Emissions will be 0

24 Water quality and quantity Required MDG 7: Ensure Environmental Sustainability, target C Halve, by 2015, the proportion of people without sustainable access to safe drinking water and basic substantially greater than emissions from project operation activities, but still limited in volume. Thus impact on local settlements will be negligible. The minor dust emissions if any are localized and controlled by spraying water in the area. Thus the Overall impact due to the project shall be positive in line with baseline scenario. However during the project activity operation, there is no any impact at site being wind is renewable energy source. Hence this parameter is considered as neutral. As compared to baseline scenario, which is fossil fuel dominated grid connected electricity, the project activity reduces air pollution of baseline fossil fuel power plants equivalent of electricity generated by project activity. Please refer page 28, table of report on Developmental Impacts and Sustainable Governance Aspects of Renewable Energy Projects prepared by MNRE dated September 2013 Explanation: Thermal power plants produce considerable amount wastewater especially due to cooling. By the project activity, significant amount of wastewater discharge will be avoided. 0

25 Soil condition Required sanitation. MDG- 7: Ensure Environment Sustainability 7.A Integrate the principles of sustainable development into country policies and programmes and reverse the loss of environmental resources 7. B Reduce biodiversity loss, achieving, by 2010, a significant reduction in the rate of loss During normal construction period, water usage is negligible for domestic use in full capacity of workers. Once the solar farm is operational, water is only required for the domestic use of project staff at the site which will be around 0.5 KLD. Minor volumes of sewage will be generated from toilet facilities at the site office. This will be disposed to leakproof septic tank, thus no significant impact is anticipated to surface or groundwater. Please refer page 28, table of report on Developmental Impacts and Sustainable Governance Aspects of Renewable Energy Projects prepared by MNRE dated September 2013 The project would not emit any pollutants to the soil during the construction and operation period, with no negative impact on the soil quality. The top soil excavated during construction, stock pilled and used for compaction. The roads are not be paved and soling is done with excavated earth & rock material, so land disturbance will be minimized. All the drainage patterns are maintained as it is and wherever required road culverts will be provided. The cranes used for construction activities 0

26 Other pollutants Required MDG- 7: Ensure Environment Sustainability 7. B Reduce biodiversity loss, achieving, by 2010, a significant reduction in the rate of loss are placed on hard, flat surface area and if required, ground levelling is done. Thus project does not involve any soil erosion. During operation of a project, no appreciable adverse changes in the soils are anticipated. There was no excavated wastes. All excavated soils from foundation pits were spread in the plant area itself to provide required gradient in alignment with maximum solar radiation. Water Harvesting Structure is available inside the plant where water during rainy season is stored and allowed to recharge the ground water. The plant land is plain thus there was no any top soil stripping required. Also vegetation at site maintained the soil condition and there is no any impact. Plantation activities at site controls the soil erosion. Please refer page 25, table 11 of report on Developmental Impacts and Sustainable Governance Aspects of Renewable Energy Projects prepared by MNRE dated September 2013 Explanation: During the operation of the solar farm there will be no noise due to solar panels. However, there will be no negative impact on the settlement areas in this project due to the distance. +

27 Biodiversity Required MDG- 7: Ensure Environment Sustainability 7. B Reduce biodiversity loss, achieving, by 2010, a significant reduction in the rate of loss There are no other pollutants generated from the solar power project (renewable energy project). Access Road was available for transportation of equipment during construction. Vegetation and landscaping was done at site to give pleasant outlook at site. The project activity have positive impact on other pollutants. Please refer page 28, table of report on Developmental Impacts and Sustainable Governance Aspects of Renewable Energy Projects prepared by MNRE dated September Since project site was barren land prior to implementation of project activity, there is no any impact of project activity on vegetation. In fact Vegetation has positive impact, thus PP will provide the vegetation status through photographs Thus the Overall impact due to the project shall be positive on other pollutants. The project site is open land & no rare species has been found in the around area. The project site is not on the migration route of migratory bird. Thus impacts on birds is minimal. There is no any adverse impact on Bio adversity due to project implementation. Please refer page 29, table of report on Developmental Impacts and 0

28 Quality of employment Necessary health and safety measures will be taken during constructio n and operation phase, relevant staff will be trained to be able to work with high voltages. MDG-1: Eradicate extreme poverty & hunger 1.B. Achieve full and productive employment and decent work for all, including women and young people Sustainable Governance Aspects of Renewable Energy Projects prepared by MNRE dated September 2013 The Overall impact due to the project shall be neutral. Parameter: Health and Safety and other trainings Explanation: Project developer ensures high standard health and safety conditions for the employees and provides Health & Safety Trainings to employees. Some of the staff may get training on different kind of issues like operation and maintenance of power plant. All employees will be trained on Occupational Health and Safety issue. There is positive impact on quality of employment due to project implementation. Please refer page 29, table of report on Developmental Impacts and Sustainable Governance Aspects of Renewable Energy Projects prepared by MNRE dated September Livelihood of the poor Required MDG-1: Eradication extreme poverty and hunger 1.A.Halve, between 1990 and 2015, the proportion of people whose income is less than Income generation by local orders with project activity will have indirect impacts to changing living standards of the local people. There is positive impact on community due to project implementation. Please refer page 29, table of report on Developmental 0

29 $1 a day Impacts and Sustainable Governance Aspects of Renewable Energy Projects prepared by MNRE dated September 2013 However, the impact is not significant and direct and parameter is considered as neutral. Access to affordable and clean energy services Required Goal 7 Ensure Environmental Sustainability; Target 7.A - Integrate the principles of sustainable development into country policies and programmes and reverse the loss of environmental resources Explanation: The project will help to reduce high share of imported fossil fuel dependency of India. Though there is frequent blackouts, voltage fluctuations which suggest unreliable energy service, there are no objective evidences available. Hence score of indicator is considered as neutral 0 Human and institutional capacity Required MDG-1: Eradicate extreme poverty & hunger The project activity will have an overall positive contribution to the sustainable development of the region. However, it is difficult to measure the positive changes in the project scenario compared to the baseline specifically in terms of education & skills, gender equality and empowerment. In practice, only the employees working on the Project can be considered as the main beneficiaries. 0 Thus, it is considered that the project activity does not have a significant impact on human and institutional

30 capacity. Quantitative employment and income generation Access to investment Technology transfer and technological self-reliance Required Required Goal 1 Eradicate extreme hunger and poverty; Target 1.B Achieve full and productive employment and decent work for all, including women and young people MDG-8.D Develop a global partnership for development 8.D. Deal comprehensively with the debt problems of developing countries through national and international measures in order to make debt sustainable in the long term. MDG 8 target F: In cooperation with the private sector, make available the benefits of new technologies, especially information and communications Project activity will lead to generate employment opportunities for both skilled and unskilled labours. Hence the parameter to be monitored for this indicator is the number of staff employed for the project activity. Parameter Monitored: No. of staff employed in the project activity There is no foreign investment envisaged for implementation or operation of the project activity at this stage. However, the project being a renewable power project leads to reduction in dependency on fossil fuels, there by leading to a reduction in purchase of fossil fuel in the country. As the impact is not quantifiable thus, it is considered that the project activity does not have a significant impact on balance of payments and investment. In the project activity, technology shall be sourced primarily from inside the country and introduced into the region. At the same time, the project activity shall build usable and sustainable know-how in the region for the technology, where know-how was previously lacking. Hence the project presents ample + 0 0