China: FOSUN COVID-19 Response Project

OBJECTIVE

The Project aims to support a response to COVID-19 through the development, procurement and distribution of COVID-19 treatment drug and other COVID-19 products in China.�

DESCRIPTION

The Project involves Shanghai Fosun Pharmaceutical (Group) Co., Limited’s (Fosun Pharma) investments and capital expenditures related to COVID-19 products, including COVID-19 treatment drugs. The loan proceeds are expected to finance: (i) the development, procurement and distribution of COVID-19 treatment drugs, including setting up of supply chain logistics infrastructure, (ii) expansion of manufacturing facilities for COVID-19 test-kits, (iii) investment into other COVID-19 related products and (iv) working capital needs related to items (i), (ii) and (iii).

ENVIRONMENTAL AND SOCIAL INFORMATION

Environmental and Social Policy (including Standards) and Categorization. The project is co-financed with IFC and has been prepared in accordance with IFC’s Sustainability Framework comprising of the Policy on Environmental and Social Sustainability, Performance Standards (PSs), and Access to Information Policy. To ensure a harmonized approach to addressing the environmental and social (ES) risks and impacts of the Project, and as permitted under AIIB’s Environmental and Social Policy (ESP), IFC’s PSs are applicable for this Project in lieu of AIIB’s ESP. AIIB has reviewed IFC PSs and is satisfied that: (i) it is consistent with AIIB’s Articles of Agreement and is materially consistent with AIIB’s ESP, including the Environmental and Social Exclusion List and relevant Environmental and Social Standards; and (ii) the monitoring procedures that are in place are appropriate for the Project. The Project has been assigned Category “B” in accordance with IFC PSs, which is equivalent to Category B if AIIB’s ESP were applicable, due to the potentially limited adverse ES risks and impacts, as well as Fosun Pharma’s robust ES management system.

Stakeholder Engagement, Consultation, and Information Disclosure. As per local regulatory requirements, all Fosun Pharma facilities during Environmental Impact Assessment (EIA) preparations, duly undertake public consultation activities to solicit and document potential stakeholder opinions about draft EIA reports and proposed mitigations. Fosun Pharma has been regularly publishing annual Corporate Social Responsibility reports as a key means to publicly disclose detailed ES performance information. An Environmental and Social Review Summary is disclosed on May 25, 2021, on IFC website.

Project-level Grievance Redress Mechanism (GRM). Local communities and other stakeholders can lodge grievances, if any, to each subsidiary or through a hotline set up by Fosun Pharma, or directly to the relevant local EHS regulatory body and to the city mayor hotline, as publicly communicated through their website. Fosun Pharma has developed and implemented standard operating procedures on receiving, documenting, and addressing any potential stakeholder grievances, and this includes maintenance of a log of all grievances received and addressed. Fosun Pharma will extend its existing stakeholder engagement and GRM procedures and requirements to all future activities related to the COVID-19 products, to ensure effective channels for stakeholders to submit potential grievances and effective resolution of grievances on time.