Environmental & Social Assessment Ciputra Residence has developed approximately 1,000 hectares of housing and related infrastructure during its operational history. The Company retains a sizable group of experienced staff with strong real estate development and technical backgrounds. The Ciputra Residence project development cycle includes conceptual design, construction and management. Design and development are done in accordance with Indonesian legal requirements, including the specifications outlined in the regional and city master plans. Regulatory required Environmental Impact Assessments under Indonesian law (?AMDALs?) will be prepared and approved for all future site developments. These documents describe the impacts of new projects and provide measures to be implemented to avoid, manage or mitigate expected impacts in order to meet domestic requirements. As part of the IFC investment, the Company will develop a gap analysis between Indonesian requirements and IFC?s Performance Standards. The result of such analysis will be used as the basis for the development of a supplemental assessment with an action plan prior to Project commencement to fill identified gaps. Engineering and construction contracts are outsourced on the open market via competitive bid processes with works being completed in a manner consistent with Indonesian regulatory requirements. As part of IFC investment, in addition to meeting all local regulatory requirements, the Company will ensure that seismic design meets good international industry practice. Residential buildings and building complexes with at least four floors, in addition to meeting all local requirements, will be equipped with fire/smoke alarms and at least two exit routes. Environmental & Social Management System (?ESMS?): As part of the IFC investment process, the Company will develop a comprehensive ESMS both at the corporate and project levels to identify and manage impacts and risks throughout the project development process, including managing construction related issues that are performed by contractors. Qualified environmental and labor specialists have been commissioned by the Company to undertake environmental audits and labor audits on all projects that are under construction based on national requirements and IFC?s Performance Standards. The results of these audits will form the basis for the development of a Construction E&S Management Action Plan and contribute to the development of a corporate level E&S management system to manage current and future project development including engineering and construction activities. The corporate level E&S management system will provide systematic and consistent management of E&S issues across different projects in line with IFC?s Performance Standards requirements. Organizational Capacity and E&S programs Each project site has a dedicated management team of full-time professionals who oversee the project development including the construction progress, marketing and sales. Site inspectors are employed at each construction site to enforce requirements and must have the necessary educational backgrounds supplemented by experience (e.g. those working on site are civil engineers with appropriate college degrees and training required of their duties). These same individuals monitor contractors and report on them to the corporate office; the corporate function then tracks compliance with all requirements. As part of the corporate E&S management system, the Company will hire a full-time corporate level E&S manager who will be responsible for the implementation of the ESMS, including the Construction E&S Management Action Plan across all project sites. Construction managers will be held responsible to ensure site supervisors measure, monitor and report construction performance against Key Performance Indicators (?KPIs?) as a standard corporate approach to manage the E&S performance of all construction contractors. The Company is also taking necessary steps to reduce the carbon footprints of the real estate assets it manages. A number of project-wide efforts have been piloted in several community properties including waste management, water management and energy saving mechanisms. The Company is also seeking to work with IFC?s Green Buildings team for better pollution control and energy efficiency. Monitoring & Reporting: As part of the corporate E&S management system, routine monitoring and supervision activities will be undertaken by site supervisors consistent with the corporate ESMS, including regular reporting on key environmental, social and occupational health and safety control factors. The Company will retain qualified specialists to conduct external third party monitoring. Emergency Preparedness and Response Life and fire safety are the main operational risks associated with real estate development and management. As part of the IFC investment, the Company will develop an Emergency Preparedness & Response Plan (?EPRP?) that covers foreseeable emergency scenarios associated with each project in its construction phase, including: fire, explosions, severe weather such as floods and storm events, earthquakes, release of hazardous materials, food poisoning and the spread of an epidemic. Safety signage and emergency evacuation plans will be displayed at each site. All contractors will be required to follow emergency response procedures. All the supervisors and employees will be trained on the emergency procedures and regular mock drills will be conducted. Training Ciputra Residence?s current training programs are focused on improving communication and managerial skills. Training programs on environmental initiatives have also been undertaken and will continue to be elaborated. Labor and Occupational, Health and Safety (?OHS?) training for workers is yet to be developed. As part of IFC?s investment, a corporate level training program with objectives, timelines and completion indicators will be developed as part of the Construction Management Plan. The training programs will cover activities related to construction, environmental protection, OHS, labor practices and environmental and social issues related to real estate management. All workers, including contract workers, at Ciputra Residence projects will undergo a full training program at induction and receive additional worker health and safety training relevant to individual job activities. Training records will be kept at each site and compiled at corporate level for monitoring and auditing. Community Engagement: Prior to the formal acquisition of land, the Company publicly discloses the proposed purchase, allowing potential interested parties and households to make offers and express concerns regarding the process.