Non-Employee Workers Supply Chain

IIF- SEMS - Annexes xxvii

3.2.3 Occupational Health and Safety

48. The IIF client will provide the workers with a safe and healthy work environment, taking into account inherent risks in its particular sector and specific classes of hazards in the IIF client’s work areas including physical, chemical, biological and radiological hazards, and specific threats to women. The client will take steps to prevent accidents, injury and disease arising from, associated with, or occurring in the course of work by minimizing, so far as reasonably practicable the causes of hazards. In a manner consistent with good international industry practice 7 , the client will address areas including: the identification of potential hazards to workers, particularly those that may be life threatening , provision of preventive and protective measures, including modification, substitution, or elimination of hazardous conditions or substances; training of workers; documentation and reporting of occupational accidents, diseases and incidents; and emergency prevention, preparedness and response arrangements.

3.2.4 Non-Employee Workers

49. For purpose of this Principle, “non-employee workers” refers to workers who are i directly contracted by the client, or contracted through contractors or other intermediaries; and ii performing work directly related to core functions essential to the client’s products or services for a substantial duration. Policies and procedures for managing and monitoring the performance of such employers in relation to the requirements of this Principle will be established by the client. When the IIF client contracts non-employee workers directly, the IIF client will use commercially reasonable efforts to apply the requirements of this Principle, except for Sections 3.2.1.1, 3.2.1.6 and Section 3.2.5. With respect to contractors or other intermediaries procuring nonemployee workers, the IIF client will use commercially reasonable efforts to: i ascertain that these contractors or intermediaries are reputable and legitimate enterprises; and ii require that these contractors or intermediaries apply the requirements of this Principle except for Sections 3.2.1.1, 3.2.1.6 and 3.2.1.7. 50. Non-employee workers will have access to a grievance mechanism. The client will extend its own grievance mechanism to serve non-employee workers in cases their employers are not able to provide a grievance mechanism.

3.2.5 Supply Chain

51. The adverse impacts associated with supply chains will be considered where low labour cost is a factor in the competitiveness of the item supplied. The client will inquire about and address child labour and forced labour in its primary supply chain 8 , consistent with Sections 3.2.2.1 and 3.2.2.2 above. If child labour or forced labour cases are identified, the client will take appropriate steps to remedy them. The client will monitor its primary supply chain on an on-going basis in order to identify any significant changes in its supply chain and if new risks or incidents of child andor forced labour are identified, the client will take appropriate steps to remedy them. 7 Defined as the exercise of professional skill, diligence, prudence and foresight that would reasonably be expected from skilled and experienced professionals engaged in the same type of undertaking under the same or similar circumstances globally 8 Primary suppliers are those suppliers who, on an ongoing basis, provide goods or materials essential for the core business processes of the project. IIF- SEMS - Annexes xxviii 52. To the extent applicable, relevant and possible, the client will introduce procedures and mitigation measures to ensure that primary suppliers within the supply chain are taking steps to prevent or to correct life-threatening situations if there is a high risk of significant safety issues related to supply chain workers. The ability of the client to fully address these risks will depend upon the client’s level of management control or influence over its primary suppliers. Where remedy is not possible, the client will consider shift the project’s primary supply chain over time to suppliers that can demonstrate that they are complying with this Principle. IIF- SEMS - Annexes 29

3.3. PRINCIPLE 3: POLLUTION PREVENTION AND ABATEMENT