THE WORLD BANK - ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) ROMANIA Romania: Institutional Strengthening and Financial Safety Net Resilience Project [Draft] ENVIRONMENTAL and SOCIAL COMMITMENT PLAN (ESCP) October 2019 1|Page THE WORLD BANK - ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN 1. The Romania Bank Deposit Guarantee Fund (FGDB) will implement the Romania Institutional Strengthening and Financial Safety Net Resilience Project (P171039) (the Project), with the involvement of the National Bank of Romania (NBR) and the Ministry of Public Finance (MoPF) as other interested parties. The International Bank for Reconstruction and Development (hereinafter the Bank) has agreed to provide financing for the Project. 2. The FGDB 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. The FGDB is responsible for compliance with all requirements of the ESCP even when implementation of specific measures and actions is conducted by the stakeholders referenced in 1. above. 4. Implementation of the material measures and actions set out in this ESCP will be monitored and reported to the Bank by the FGDB 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. 5. As agreed by the Bank and the FGDB, 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, the FGDB 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 BDIF. The FGDB will promptly disclose the updated ESCP. 6. Where Project changes, unforeseen circumstances, or Project performance result in changes to the risks and impacts during Project implementation, the FGDB shall provide additional funds, if needed, to implement actions and measures to address such risks and impacts, which may include environmental or labor risks. 2|Page THE WORLD BANK - ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP): VERSION 2.0 – September 2019 MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBILE ENTITY/AUTHORITY MONITORING AND REPORTING A REGULAR REPORTING On a semi-annual basis throughout project Annually throughout FGDB Prepare and submit to the World Bank regular monitoring reports on Project implementation. Coordinate with the World Banks’ ISR the implementation of the ESCP. Report. ESS 1: ASSESSMENT AND MANAGEMENT OF ENVIRONMENTAL AND SOCIAL RISKS AND IMPACTS Currently not relevant to the project ESS 2: LABOR AND WORKING CONDITIONS 2.1 The FGDB’s Procedure for Staff Recruitment, Selection and Hiring Ongoing throughout Project implementation FGDB (updated in 2018) and the 2018 Procedure for Employee Performance is aligned with the World Bank’s Environmental and Social Standard on Labor and Working Conditions ESS 3: RESOURCE EFFICIENCY AND POLLUTION PREVENTION AND MANAGEMENT Currently not relevant to the project ESS 4: COMMUNITY HEALTH AND SAFETY Currently not relevant to the project ESS 5: LAND ACQUISITION, RESTRICTIONS ON LAND USE AND INVOLUNTARY RESETTLEMENT Currently not relevant to the project ESS 6: BIODIVERSITY CONSERVATION AND SUSTAINABLE MANAGEMENT OF LIVING NATURAL RESOURCES Currently not relevant to the project ESS 7: INDIGENOUS PEOPLES/SUB-SAHARAN AFRICAN HISTORICALLY UNDERSERVED TRADITIONAL LOCAL COMMUNITIES Currently not relevant to the project ESS 8: CULTURAL HERITAGE Currently not relevant to the project. ESS 9: FINANCIAL INTERMEDIARIES Currently not relevant to the project ESS 10: STAKEHOLDER ENGAGEMENT AND INFORMATION DISCLOSURE 10.1 Regular stakeholder feedback on project progress sought through Ongoing during project implementation on a semi-annual basis, FGDB Management Board meetings of the FGDB, which includes in coordination with the preparation of the World Bank’s representatives from the National Bank of Romania and the Ministry of implementation status reports (ISRs) for the project Public Finance 3|Page THE WORLD BANK - ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP): VERSION 2.0 – September 2019 MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBILE ENTITY/AUTHORITY 10.2 Continue with current awareness raising efforts regarding the role of Ongoing throughout Project implementation FGDB the deposit guarantee scheme in Romania, including utilization of its website; dissemination through member banks including advertorials in widely-circulated magazines, information packages, videos and brochures; and financial education efforts 10.3 Continue to use its website and other outreach channels (e.g. brochures Ongoing throughout Project implementation FGDB and posters to be circulated among member banks) to provide relevant, up to date and easily understandable information related to the procedure to be followed by depositors in case of a payout event 10.4 Pilot more inclusive outreach approaches (e.g. for depositors with vision Years 2 and 3 of project implementation (with the possibility of FGDB and hearing disabilities, and those based in remote rural areas) in scale-up during years 4 and 5) collaboration with member banks when possible 10.5 Continue to conduct checks of the ways in which the units in the On an annual basis throughout Project implementation 1 FGDB territory of member credit institutions provide information to depositors and incorporate information dissemination and outreach procedures in stress simulation exercises 10.6 Continue to conduct opinion polls among banked natural persons and On a biennial basis during project implementation FGDB legal entities of the micro-enterprise type 10.7 Review procedures for information dissemination and Year two of project implementation. FGDB processing/resolution of compensation related issues for depositors who may be dissatisfied with compensation-related issues in the event of a payout2 CAPACITY SUPPORT (TRAINING) 1 Per Law 311/2015 on Deposit Guarantee Schemes, within maximum two working days of the date deposits become unavailable, the deposit guarantee scheme shall publish on its official website the information depositors need in order to receive their due compensation and shall also send that information to two national news agencies for publication. Within the same time frame, that information shall be sent also to the credit institution whose deposits have become unavailable. The credit institution whose deposits are unavailable shall display the information it got from the deposit guarantee scheme in all its units nationwide one working day after receiving it 2 Per Law 311/2015 on Deposit Guarantee Schemes, the deposit guarantee scheme shall answer notifications regarding compensation related issues within five working days of their receipt. 4|Page THE WORLD BANK - ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP): VERSION 2.0 – September 2019 MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBILE ENTITY/AUTHORITY 10.8 Training for relevant FGDB staff on procedures for effective dispute Year one of project implementation, with a refresher training for FGDB with World resolution each year of project implementation Bank support as needed 5|Page