Project detail - WISER GLOBE B. V.

WISER GLOBE B. V.

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Who is our client

Wiser Globe B.V

Funding objective

The objective of FMO’s funds is to: 1. Support in the validation, demand creation and upscaling of the innovative Wiser Wash denim washing technique across the 9 laundries of PPJ in Vietnam; and 2. Support in improving the Wiser Wash business model for wider roll out in emerging markets with a focus on: a. Developing standards and an Environmental and Social Management System (ESMS) for Wiser Globe that are IFC E&S performance standards compliant b. Building the capacity of Wiser Globe in the assessment and compliance of Wiser Wash clients with a focus on PPJ as a pilot. c. Refining the Wiser Wash business plan for roll out in Vietnam and other emerging markets.

Why we fund this project

This is a Green project due to Wiser Wash technique with significant water savings, energy savings and zero hazardous chemical use and discharge that will be applied in the denim textile industry. This fits well with both NLB’s and FMO’s development objectives. The investment will also potentially contribute to a ‘gender inclusive business’ as per FMO’s Reducing Inequalities Label guidelines. This is because the client of Wiser Globe B.V., PPJ has a workforce that entails 90% of female employees throughout their manufacturing value chain.

Environmental and social rationale

The E&S categorization is B+ considering the ‘garment clients, Wiser Globe is looking at, where main risks are due to large workforces with potentially working long hours, low wages and under mediocre OHS circumstances with high temperatures and a lot of dust etc.. Potential environmental risks are related to wastewater, in particularly from dyeing, if not adequately treated, together with the use of a lot of water and other natural resources. However, with Wiser Wash technology the companies they work with will improve considerably, diminish their water use, including amount of dye and pumice stone which at the same time will make working circumstances safer and shorten the production process, which will save energy in general. Based on the scoping visit for the review of the first client the following IFC Performance Standards are relevant: PS1 assessment and management. In the assessment of the clients of Wiser wash besides PS1 also the following Performance Standards need to be assessed: PS 2 labour and working conditions, PS3 Resource Efficiency and Pollution Prevention, PS4 Community health, safety and security, will not always be applicable, only when the client of Wiser Wash will be operating near communities, PS5, Land Acquisition and Involuntary Resettlement, PS6 Biodiversity Conservation and Sustainable Management, PS7 Indigenous Peoples and PS8 will only be applicable under certain circumstances and for certain location only. For every new business relationship and technology delivery a check needs to be done regarding the applicability of the latter Performance Standards and risks assessed as well as mitigation of any gaps agreed.

Region
Asia
Country
Vietnam
Sector
Infrastructure, Manufacturing and Services
Signing date
5/8/2020
Total FMO financing
EUR 0.40 MLN
Fund
Development Accelera
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk Environmental & Social Category
(A, B+, B or C)