Haiti’s Rum Producer Under Scrutiny: Due Diligence in Finance Reveals Key Findings on Environmental and Social Commitments

Introduction

A recent environmental and social due diligence mission conducted by Insuco, a leading international consulting firm, has shed light on the sustainability practices of Société du Rhum Barbancourt S.A., Haiti’s largest rum producer. The mission was commissioned by the Inter-American Development Bank (BID Invest) as part of its loan approval process for the company.

Background

Barbancourt, which operates in Port-au-Prince, is set to receive a loan from BID Invest to finance investments in glass bottle recycling and increased production of photovoltaic solar energy for self-consumption. As part of this loan, the company was subject to an environmental and social due diligence review conducted by Insuco in accordance with Performance Standards 1, 2, 3, and 4.

Methodology

During the mission, Insuco team members carried out site visits at Barbancourt’s factory and fields, as well as interviews with key personnel, a representative of the surrounding community, and a subcontractor. The team gathered information on the company’s environment, health, and safety commitments and analyzed the data to produce deliverables.

Findings

The findings revealed that Barbancourt has made significant strides in reducing its environmental footprint through initiatives such as solar energy production and waste recycling. However, the report also highlighted areas for improvement, including:

• The need for more robust social safeguards to protect local communities and workers.
• Improvements in occupational health and safety procedures.

Conclusion

“We are committed to conducting thorough due diligence reviews to ensure that our investments align with international best practices,” said a BID Invest spokesperson. “Insuco’s expertise was invaluable in helping us assess Barbancourt’s environmental and social commitments.”

The report will inform BID Invest’s decision-making process on the loan approval, ensuring that the company is held accountable for its sustainability performance.

References

• Insuco (2022). Environmental and Social Due Diligence Report: Société du Rhum Barbancourt S.A.
• BID Invest (2022). Press Release: Haiti’s Rum Producer Under Scrutiny: Due Diligence in Finance Reveals Key Findings on Environmental and Social Commitments.