CO2 BAMBU

COMPANY CO2 BAMBU
COUNTRY NICARAGUA
SECTOR HOUSING
DATE 07.09.2011
REPORTING PERIOD 01.01.2011 - 30.06.2011

           
                   
                       
                            
  

BUSINESS SUMMARY

CO2 Bambu is a US-based company operating in Nicaragua and Haiti. It designs, manufactures and assembles houses and shelters. Native bamboo is used as the primary raw material for construction.

RATING

TRANSPARENCY 2.9

+ CO2 Bambu has made a significant effort to provide information. The team has been especially active in generating sector specific indicators. From extraction of raw material to delivery of houses to clients, the whole value chain is implemented by the company, making it easier to monitor the whole process.

- From the required set of indicators, only a small number of environmental indicators were not delivered.

ECONOMIC 1.7

+ CO2 Bambu generates income for its 78 employees in Nicaragua. Indigenous people providing bamboo get paid a fair price. Bamboo houses are cheaper than alternate wood houses.

- The financial sustainability of the company relies mostly on major governmental contracts

ENVIRONMENTAL 2.4

+ A clear positive impact of CO2 Bambu is that bamboo is a substitute for timber as a construction material. Therer is a powerful upside, given that deforestation linked to timber extraction is a major environmental issue in the region. In terms of biodiversity, valuable bamboo seeds are being collected and grown in a tree nursery for replanting activities. There is a reduced environmental impact related to transport since the factory is located near both bamboo sources and construction sites.

- Data on utility consumption and waste production of the factory is missing.

GOVERNANCE 1.4

+ The social mission of CO2 Bambu is clearly expressed with social and environmental components. The staff is well aware of the corporate values including transparency and internal mobility. Shareholders benefit from a monthly reporting of activities with a pre-defined list of topics. The CEO plans to expand the Board of Directors with new members covering different competencies.

- There is no mandate by the Board of Directors in terms of corporate governance. The management is overrepresented in the BoD and there is no independent member.

HUMAN RIGHTS 2.8

There is a strict control of the workforce to prevent child labor and freedom of association is guaranteed. There is no use of forced labor. Formal agreements have been concluded for all operations taking place in indigenous territories, namely bamboo extraction. The director of technology is half indigenous; this facilitates relations with indigenous people throughout operations.

 - There is no process to neither evaluate nor follow up bamboo suppliers in terms of human rights.

LABOR PRACTICES 2.3

+ There is transparency on salary conditions at the management level and the expats working for the company receive similar salaries as locals. A good level of communication is maintained inside the company with regular updates on business development. Balanced meals are provided to on site employees, who also benefit from decent housing facilities. There are strict security guidelines in the factory with different levels of responsibility and rigid disciplinary measures.

- There have been a couple of occupational accidents. There is no performance evaluation system in place for the management.

PRODUCT RESPONSABILITY 2.8

+ End users of houses are trained on maintenance and visited regularly. A house model has been tested as hurricane resistant.

SOCIETY 1.6

+ 94% of the final users of the houses are members of the BoP in rural areas. As a philanthropic activity, the company has hosted members of Prolena, an NGO, who offered to build 15 cooking stoves next the new bamboo houses.

- The scale of development of the company is still limited, the growth of the positive impact on local communities is linked to the growth of the company.