Annexes I -

IV

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PART II: Annex (Annexes I-IV)

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Table of Contents

1 ESG FRAMEWORK OVERVIEW.................................................................................................... 4

2 POLICY GAP MAPPING............................................................................................................... 11

3 SECTOR-SPECIFIC WEIGHTAGE............................................................................................... 17

4 ESG GUIDELINES FOR COMPANIES......................................................................................... 21

5 ESG ASSESSMENT FRAMEWORK............................................................................................. 36

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1 ESG Framework overview

G.1 Sustainability S.1 Employee Welfare E.1 Energy

Governance

Social

Environment
Commitment & Standards E.2 Water
G.2 Sustainability S.2 Occupational E.3 Waste
Expertise Health & Safety E.4 Pollution
G.3 Sustainability S.3 Training & E.5 Procurement
Design Capacity-building E.6 Resource
G.4 Transparency & S.4 Equal Efficiency
Accountability Opportunities E.7 Climate Action
G.5 Economic S.5 Product Safety E.8 Ecosystem
Sustainability S.6 Customer Impacts
Relations
S.7 Local Community
Betterment

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 1.1 ESG Framework Indicators

Governance
G.1 Sustainability G.2 Sustainability Expertise G.3 Sustainability Design
Commitment
G.2.1 Employee Training G.3.1 Supply Chain
G.1.1 Mission G.2.2 Dedicated Experts & Resources G.3.2 Product Design
G.1.2 Corporate Policies
G.1.3 Management Systems &
Standards
G.1.4 Code of Ethics

G.4 Transparency & Accountability G.5 Economic Sustainability

G.4.1 Audits G.5.1 Job creation

G.4.2 Public Disclosure of Audits G.5.2 Profits
G.5.3 Innovation & R&D

Social
S.1 Employee S.2 Occupational S.3 Training & S.4 Equal
Welfare & Health & Safety Capacity- Opportunities
Standards building
S.2.1 Rules & Procedures S.4.1 Fair & Transparent
S.1.1 General Labour S.2.2 Equipment S.3.1 Health & Hiring Practice
Standards S.2.3 Emergency Safety Training S.4.2 Inclusive Workplace
S.1.2 Child Labour & Response Mechanisms
Forced Labour S.2.4 Dedicated Personnel
S.1.3 Salary
S.1.4 Other Benefits
S.1.5 Grievance System

S.5 Product Safety S.6 Customer Relations S.7 Local Community

Betterment
S.5.1 Testing S.6.1 Customer satisfaction
S.5.2 Standards S.7.1 Positive Impact on Local
Workforce & Business
S.7.2 Corporate Social
Responsibility

5

E.1 Energy
E.1.1 Energy Management
Practices
E.1.2 Energy Efficiency
E.1.3 Renewable Energy
E.1.4 Energy Management
System
E.4 Pollution
E.4.1 Air pollution
E.4.2 Water pollution
E.4.3 Land pollution
E.4.4 Noise pollution
E.7 Climate Action
E.7.1 Carbon Footprint & Carbon
Markets
E.7.2 Climate Resilience
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Environmental
E.2 Water
E.2.1 Water Management
Practices & Processes
E.2.2 Water Efficiency
E.5 Procurement
E.5.1 Raw Material
E.5.2 Packaging
E.5.3 Durability
E.5.4 Procurement Practices
E.8 Ecosystem Impacts
E.8.1 Biodiversity
E.8.2 Habitat
E.3 Waste
E.3.1 Waste Management
Practices & Processes
E.3.2 Non-Hazardous Waste
Management
E.3.3 Hazardous Waste
Management
E.3.4 Awareness Raising on
Waste Management Practices
E.6 Resource Efficiency
E.6.1 Manufacturing Efficiency
E.6.2 Eco-Design
1.2 ESG Framework Sub-Indicators

Governance
G.1 Sustainability Commitment
G.1.1 Mission
G.1.1.1 Concept of sustainability is integral part of company mission statement
G.1.1.2 Commitment to sustainable business practices
G.1.2 Corporate Policies
G.1.2.1 Sustainability
G.1.2.2 Social Responsibility
G.1.2.3 Environmental Responsibility
G.1.2.4 Health and Safety
G.1.2.5 Equal Opportunities
G.1.2.6 Anti-corruption/Anti-bribery
G.1.2.7 Other (specify)
G.1.3 Management Systems & Standards
G.1.3.1 ISO 26000 or similar (social responsibility)
G.1.3.2 ISO 14001 or similar (environmental management systems)
G.1.3.3 OSH18000 or similar (Health and Safety)
G.1.3.4 ISO 9001 or similar (Quality and standards)
G.1.3.5 ISO37001 or similar (anti-corruption/ anti-bribery)
G.1.3.6 Other national, local or sectoral standards
G.1.3.7 Other (please specify)
G.1.4 Code of Ethics
G.2 Sustainability Expertise
G.2.1 Employee Training
G.2.1.1 Regular training of employees on aspects of corporate governance
G.2.2 Dedicated Experts & Resources
G.2.2.1 Dedicated, trained experts (and/or department) skilled in various aspects on
sustainability and good governance
G.3 Sustainability Design
G.3.1 Supply Chain
G.3.1.1 Selection of suppliers of goods and services is based on sustainability criteria,
including social and environmental performance and proximity of the supplier
G.3.2 Product Design
G.3.2.1 Sustainability criteria are considered for the product design, including resource
efficiencies, durability, packaging and safety of product use
G.4 Transparency & Accountability
G.4.1 Audits
G.4.1.1 Regular audits – both internal and external: Financial, Social. Environmental
G.4.2 Public Disclosure of Audits
G.4.2.1 Regular disclosure of audit findings using renowned reporting standards
G.5 Economic Sustainability
G.5.1 Job creation
Opportunities for creation of more local jobs
G.5.2 Profits
G.5.3.1 Forecast for the next 3-5 years
G.5.3.2 Benefits of sustainability till date
G.5.3 Innovation and R&D
G.5.5.1 Company focus on innovation and R&D

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 Social
S.1 Employee Welfare & Standards
S.1.1 General Labour Standards
S.1.1.1: Written employment contracts
S.1.1.2: Association of workers (collective bargaining)
S.1.1.3: Overtime payment based on 8 working hours/day (or 48 hours/week)
S.1.1.4: Severance payments
S.1.1.5: Adequate and appropriate welfare facilities (toilets, canteen, clean water) on
premises
S.1.2 Child Labour & Forced Labour
S.1.3 Salary
S.1.3.1 Competitive salary (compared to local average)
S.1.3.2 Salary increments opportunities
S.1.4 Other Benefits
S.1.4.1: Maternity and paternity leave
S.1.5 Grievance System
S.1.5.1 Mechanism for work-related grievances in place
S.1.5.2 Harassment provision and response system with complaint and response
procedure is in place
S.2 Occupational Health & Safety
S.2.1 Rules & Procedures
S.2.1.1 Set of relevant procedures addressing all relevant aspects of H&S in the workplace
S.2.1.2 Work-related injuries and fatalities are investigated and recorded and mitigation
measures are strengthened
S.2.1.3 Compensation in case of accidents
S.2.2 Equipment
S.2.2.1 Relevant personal protective equipment including first aid kits
S.2.3 Emergency Response Mechanisms
S.2.3.1 Tools and facilities (fire extinguishers)
S.2.3.2 Emergency drills
S.2.3.3 Emergency exit points
S.2.3.4 Emergency assembly points
S.2.4 Dedicated Personnel
S.2.4.1 Nominated H&S representative and experts
S.2.4.2 Nominated and trained first aider, fire warden(s)
S.3 Training & Capacity-building
S.3.1 Health & Safety Training
S.3.1.1 Regular training programme for workers
S.4 Equal Opportunities
S.4.1 Fair & Transparent Hiring Practice
S.4.1.1 Inclusive hiring practices
S.4.2 Inclusive Workplace
S.4.2.1 Equal pay irrespective of gender, disability, or any other factors
S.4.2.2 Facilities and workplace that caters to the needs of people with disabilities
S.5 Product Safety
S.5.1 Testing
S.5.1.1 Products tested to ensure the safety and wellbeing of consumers
S.5.1.2 Periodic personal appliance testing to ensure the safety and wellbeing of workers
S.5.2 Standards
S.5.2.1 Meeting product quality and safety standards (national and international)
S.6 Customer Relations
S.6.1 Customer Satisfaction
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 S.6.1.1 Products, sales, after-sales and/or services at par with international standards
S.6.1.2 Grievance redressal
S.7 Local Community Betterment
S.7.1 Positive Impact on Local Workforce & Business
S.7.1.1 Local businesses as suppliers and/or service providers
S.7.1.2 Local workers employed
S.7.1.3 Local youth employed/engaged (internships)
S.7.2 Corporate Social Responsibility
S.7.2.1 Community improvement projects
S.7.2.2 Community awareness

Environment
E.1 Energy
E.1.1 Energy Management Practices
E.1.1.1 Energy sources
E.1.1.2 Energy consumption
E.1.2 Energy Efficiency
E.1.2.1 Energy efficient equipment
E.1.2.2 Energy efficiency practices
E.1.3 Renewable Energy
E.1.3.1 Use of renewable energy
E.1.4 Energy Management System
E.1.4.1 Formal/informal processes and practices for managing energy
E.2 Water
E.2.1 Water Management Practices & Processes
E.2.1.1 Water use
E.2.1.2 Water discharge
E.2.2 Water Efficiency
E.2.2.1 Efficient water management practices (recycled water/rainwater harvesting),
processes and equipment in place
E.3 Waste
E.3.1 Waste Management Practices & Processes

E.3.2 Non-Hazardous Waste Management

E.3.3 Hazardous waste management

E.3.4 Awareness Raising on Waste Management Practices

E.4 Pollution
E.4.1 Air Pollution
E.4.1.1 Flue gas quality
E.4.1.2 Concentration of pollutants
E.4.1.3 Treatment measures
E.4.1.4 Air quality monitoring
o Production/Processes emissions
o Transport emissions
o Ambient air quality
E.4.1.5 Odor removal
E.4.1.6 Reporting
E.4.2 Water Pollution
E.4.2.1 Waste water contaminants
E.4.2.2 Concentration of pollutants
E.4.2.3 Treatment measures

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 E.4.2.4 Wastewater dumping
E.4.3 Land Pollution
E.4.3.1 Sources of land pollution
E.4.3.2 Monitoring soil quality
E.4.3.3 Practices for managing land pollution
E.4.4 Noise Pollution
E.4.4.1 Noise monitoring device
E.4.4.2 Noise pollution minimizing equipment

E.5 Procurement
E.5.1 Raw Materials
E.5.1.1 Toxic materials
E.5.1.2 Virgin material (recyclability)
E.5.2 Packaging
E.5.2.1 Packaging design/contents
E.5.2.2 Optimal/efficient packaging
E.5.3 Durability
E.5.4 Procurement Practices
E.5.4.1 Local
E.5.4.2 Certified
E.6 Resource Efficiency
E.6.1 Manufacturing Efficiency
E.6.2 Eco-Design
E.7 Climate Action
E.7.1 Carbon Footprint & Carbon Markets
E.7.1.1 Carbon footprint
E.7.1.2 Carbon markets to off-set GHG emissions (in line with Ethiopia’s NDCs)
E.7.2 Climate Resilience
E.7.2.1 Equipment, processes and practices to combat negative impacts of climate change

E.8 Ecosystem Impacts

E.8.1 Biodiversity
E.8.1.2 Actions to prevent loss to biodiversity
E.8.1.3 Practising urban agriculture within the premises, if applicable
E.8.2 Habitat
E.8.2.1 Actions to prevent loss of habitat
E.8.2.3 Bio-based fertilisers and pesticides (if applicable)

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2 Policy Gap Mapping

No gap/ regulation available

Partial gap
Gap/ no regulation

Legal Provisions
Governance
G.1 Sustainability Commitment
G.1.1 Mission No
G.1.1.1 Concept of sustainability is integral part of
company mission statement
G.1.1.2 Commitment to sustainable business practices
G.1.2 Corporate Policies No
G.1.2.1 Sustainability
G.1.2.2 Social Responsibility
G.1.2.3 Environmental Responsibility
G.1.2.4 Health and Safety
G.1.2.5 Equal Opportunities
G.1.2.6 Anti-corruption/Anti-bribery
G.1.2.7 Other (specify)
G.1.3 Management Systems & Standards No, except for national, local and
sectoral standards that may be
G.1.3.1 ISO 26000 or similar (social responsibility) mandatory or voluntary. Mandatory
G.1.3.2 ISO 14001 or similar (environmental standards have the force of law as do
management systems) other technical regulations in Ethiopia.
G.1.3.3 OSH18000 or similar (Health and Safety) They are enforced by laws and
administrative regulations and concern
G.1.3.4 ISO 9001 or similar (Quality and standards) the protection of human health, personal
G.1.3.5 ISO37001 or similar (anti-corruption/ anti- property and safety. All standards that
bribery) fall outside of these characteristics are
G.1.3.6 Other national, local or sectoral standards considered voluntary standards.
G.1.3.7 Other (please specify)
G.1.4 Code of Ethics Yes, The Criminal Code Proclamation
No. 414/2004, Art. 427-434; Assets
Disclosure and Registration
Proclamation No. 668/2010, Art. 15;
Prevention and Suppression of Money
Laundering and the Financing of
Terrorism Proclamation No. 657/2009,
Art. 14 and 17.
G.2 Sustainability Expertise
G.2.1 Employee Training No, not specifically on corporate
governance aspects.
G.2.1.1 Regular training of employees on aspects of
corporate governance
G.2.2 Dedicated Experts & Resources No
G.2.2.1 Dedicated, trained experts (and/or department)
skilled in various aspects on sustainability and good
governance
G.3 Sustainability Design
G.3.1 Supply Chain No
G.3.1.1 Selection of suppliers of goods and services is
based on sustainability criteria, including social and
environmental performance and proximity of the

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 supplier
G.3.2 Product Design No
G.3.2.1 Sustainability criteria are considered for the
product design, including resource efficiencies,
durability, packaging and safety of product use
G.4 Transparency & Accountability
G.4.1 Audits No, only regarding financial audits as
per Commercial Code of Ethiopia (1960),
G.4.1.1 Regular audits – both internal and external: Art. 368-381; and Financial Report
Financial, Social. Environmental Proclamation of Ethiopia No 847/2014

Prevention of Industrial Pollution Control

Regulation No. 159/2008, Art. 9(1) and
11(2) (Environmental Audits)

G.4.2 Public Disclosure of Audits No, only regarding financial audits as

per Financial Report Proclamation of
G.4.2.1 Regular disclosure of audit findings using Ethiopia No 847/2014
renowned reporting standards
G.5 Economic Sustainability
G.5.1 Job creation Yes, Investment proclamation
1180/2020, Art. 5 (2), 22; Industrial Park
Opportunities for creation of more local jobs Council of Ministers Regulation No.
417/2017 Art. 14 (2), Industrial Parks
Proclamation No. 886-2015, Art. 10 (5)
G.5.2 Profits No
G.5.3.1 Forecast for the next 3-5 years
G.5.3.2 Benefits of sustainability till date
G.5.3 Innovation and R&D No
G.5.5.1 Company focus on innovation and R&D

Legal Provisions
Social
S.1 Employee Welfare & Standards
S.1.1 General Labour Standards Yes, as per:
- Labour Proclamation No.1156/2019,
S.1.1.1: Written employment contracts Article 4 to 8
S.1.1.2: Association of workers (collective bargaining) - Labour Proclamation No.1156/2019,
S.1.1.3: Overtime payment based on 8 working Article 14 1/d. and Article 113
hours/day (or 48 hours/week) - Labour Proclamation No.1156/2019,
Article 66, 68
S.1.1.4: Severance payments - Labour Proclamation No.1156/2019,
S.1.1.5: Adequate and appropriate welfare facilities Article 39 to 41
(toilets, canteen, clean water) on premises
S.1.2 Child Labour & Forced Labour Yes, as per: Labour Proclamation
No.1156/2019, Article 89
S.1.3 Salary No
S.1.3.1 Competitive salary (compared to local average)
S.1.3.2 Salary increments opportunities
S.1.4 Other Benefits Yes, as per:
- Labour Proclamation No.1156/2019,
S.1.4.1: Maternity and paternity leave Article 88 4/.
- Labour Proclamation No.1156/2019,
Article 81 2/.
S.1.5 Grievance System Yes, as per:
- Labour Proclamation No.1156/2019,
S.1.5.1 Mechanism for work-related grievances in place Articles 137 to 144.
S.1.5.2 Harassment provision and response system with
complaint and response procedure is in place
S.2 Occupational Health & Safety
S.2.1 Rules & Procedures Yes, as per:
- Labour Proclamation No.1156/2019,
S.2.1.1 Set of relevant procedures addressing all Article 12, 5/ and 13, 6/ and Article 92,
relevant aspects of H&S in the workplace 6/ and 7/
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 S.2.1.2 Work-related injuries and fatalities are - Pesticide Registration and Control
Proclamation No 674/2010, Article 22
investigated and recorded and mitigation measures are and 23 (1)
strengthened - Labour Proclamation No.1156/2019,
S.2.1.3 Compensation in case of accidents Article 92, 2/ and 3/.
- Floriculture sector only: Code of
Practice of the Floriculture Sector
Council of Ministers Regulation No.
207/2011, Article 5, 7/
- Labour Proclamation No.1156/2019,
Article 92 ,4/.
- Labour Proclamation No.1156/2019,
Articles 103 to 112.
S.2.2 Equipment Yes, as per:
- Labour Proclamation No.1156/2019,
S.2.2.1 Relevant personal protective equipment 92, 3/
including first aid kits
S.2.3 Emergency Response Mechanisms Yes, as per:
- Labour Proclamation No.1156/2019,
S.2.3.1 Tools and facilities (fire extinguishers) Article 12, 5/ and 13, 6/ and Article 92,
S.2.3.2 Emergency drills 6/ and 7/
S.2.3.3 Emergency exit points
S.2.3.4 Emergency assembly points
S.2.4 Dedicated Personnel Yes, as per:
- Labour Proclamation No.1156/2019,
S.2.4.1 Nominated H&S representative and experts Article 92, 2/
S.2.4.2 Nominated and trained first aider, fire warden(s)
S.3 Training & Capacity-building
S.3.1 Health & Safety Training Yes, as per:
- Labour Proclamation No.1156/2019,
S.3.1.1 Regular training programme for workers Article 92, 2/
S.4 Equal Opportunities
S.4.1 Fair & Transparent Hiring Practice No
S.4.1.1 Inclusive hiring practices
S.4.2 Inclusive Workplace Yes, but only regarding equal pay as
per:
S.4.2.1 Equal pay irrespective of gender, disability, or - Labour Proclamation No.1156/2019,
any other factors Article 14 1/b, 12 1/f, and 87 1/
S.4.2.2 Facilities and workplace that caters to the needs
of people with disabilities
S.5 Product Safety
S.5.1 Testing Yes, as per national, local and sectoral
standards that may be mandatory or
S.5.1.1 Products tested to ensure the safety and voluntary.
wellbeing of consumers
S.5.1.2 Periodic personal appliance testing to ensure the
safety and wellbeing of workers
S.5.2 Standards Yes, as per Trade Competition and
Consumers Protection Proclamation No.
S.5.2.1 Meeting product quality and safety standards 813/2013, Art. 14-22 as well as per
(national and international) national, local and sectoral standards
that may be mandatory or voluntary.
S.6 Customer Relations
S.6.1 Customer Satisfaction Yes, as per Trade Competition and
Consumers Protection Proclamation No.
S.6.1.1 Products, sales, after-sales and/or services at 813/2013, Articles 14-22
par with international standards
S.6.1.2 Grievance redressal
S.7 Local Community Betterment
S.7.1 Positive Impact on Local Workforce & Business Yes, but for industrial parks only:
Industrial Parks Proclamation No. 886-
S.7.1.1 Local businesses as suppliers and/or service 2015, Article 6, 8/, Article 8, 7/ and
providers Article 10, 5/ (local employment); Article
S.7.1.2 Local workers employed 8, 5/ (local suppliers)
S.7.1.3 Local youth employed/engaged (internships)
S.7.2 Corporate Social Responsibility Yes, but floriculture sector only:

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 S.7.2.1 Community improvement projects Code of Practice of the Floriculture
Sector Council of Ministers Regulation
S.7.2.2 Community awareness No. 207/2011, Article 7, 2/

Legal Provisions
Environment
E.1 Energy
E.1.1 Energy Management Practices No
E.1.1.1 Energy sources
E.1.1.2 Energy consumption
E.1.2 Energy Efficiency No
E.1.2.1 Energy efficient equipment
E.1.2.2 Energy efficiency practices
E.1.3 Renewable Energy No
E.1.3.1 Use of renewable energy
E.1.4 Energy Management System No
E.1.4.1 Formal/informal processes and practices for
managing energy
E.2 Water
E.2.1 Water Management Practices & Processes No
E.2.1.1 Water use
E.2.1.2 Water discharge
E.2.2 Water Efficiency Yes, but for floriculture sector only:
Code of Practice of the Floriculture
E.2.2.1 Efficient water management practices (recycled Sector Council of Ministers Regulation
water/rainwater harvesting), processes and equipment in No. 207/2011, Article 6, 2/c
place

E.3 Waste
E.3.1 Waste Management Practices & Processes No

E.3.2 Non-Hazardous Waste Management Yes, as per:

- Solid Waste Management
Proclamation No.513/2007, Article 4 (2),
7 (1), 8 (1 and 2), 9 (1), 10, 11 (3), 15
(2), 16 (1) and 17 (3)
- Environmental Pollution Control
Proclamation No. 300/2002, Article 5
and 6(e)
- Floriculture sector only: Code of
Practice of the Floriculture Sector
Council of Ministers Regulation No.
207/2011, Article 5, 2/

E.3.3 Hazardous waste management Yes, as per:

- Hazardous Waste Management and
Disposal Control Proclamation No.
1090/2018: Article 5, 6, 7, 8, 9, 10, 11
(1, 4 and 5), 12, 13, 14 (1 and 2), 15, 16,
17 (1 and 4), 18 (2), 20 (3) and 21
- Environmental Pollution Control
Proclamation No. 300/2002: Article 3, 4,
5 (3), 6, 10 (2) and 15

E.3.4 Awareness Raising on Waste Management Practices No

E.4 Pollution
E.4.1 Air Pollution Yes, as per:
- Environmental Pollution Control
E.4.1.1 Flue gas quality Proclamation No. 300/2002, Article 3
E.4.1.2 Concentration of pollutants (2), 4, 5 (2), 10 (2) and 15
E.4.1.3 Treatment measures - Prevention of Industrial Pollution
Council of Ministers Regulation No.
14
 E.4.1.4 Air quality monitoring 159/2008, Article 4.1
o Production/Processes emissions
o Transport emissions
o Ambient air quality
E.4.1.5 Odor removal
E.4.1.6 Reporting
E.4.2 Water Pollution Yes, as per:
- Water Resources Management
E.4.2.1 Waste water contaminants Proclamation No. 197/2000, Article 11,
E.4.2.2 Concentration of pollutants 1/d, 2/, 12/, 15/, 16/1 and 4, 18 a, 20 c,
E.4.2.3 Treatment measures 2/ and 22/1.
E.4.2.4 Wastewater dumping - Water Resources Management
Regulations No. 115/2005, Article 3 (c);
5, 6 (2e), 11, 12 (1), 13 (2), 14 (1), 32
- Environmental Pollution Control
Proclamation No. 300/2002: Article 4
(2), 6 (a, c); 10 (2),
- Ethiopian Water Resources
Management Proclamation No.
197/2000, Article 8 (c and f) and 16 (3
- Ethiopian Water Resources
Management Regulations No. 115/2005,
Article 6 (2e), 11 and 38
- Prevention of Industrial Pollution
Council of Ministers Regulation No.
159/2008, Article 9.1. and 11
E.4.3 Land Pollution Yes, as per:
- Environmental Pollution Control
E.4.3.1 Sources of land pollution Proclamation No. 300/2002, Article 6 (c)
E.4.3.2 Monitoring soil quality - Ethiopian Water Resources
E.4.3.3 Practices for managing land pollution Management Proclamation No.
197/2000, Article 8 (c and f) and 16 (3
- Ethiopian Water Resources
Management Regulations No. 115/2005,
Article 6 (2e), 11 and 38
- Prevention of Industrial Pollution
Council of Ministers Regulation No.
159/2008, Article 9.1. and 11
E.4.4 Noise Pollution No
E.4.4.1 Noise monitoring device
E.4.4.2 Noise pollution minimizing equipment

E.5 Procurement
E.5.1 Raw Materials No
E.5.1.1 Toxic materials
E.5.1.2 Virgin material (recyclability)
E.5.2 Packaging Yes, as per:
- Solid Waste Management
E.5.2.1 Packaging design/contents Proclamation No.513/2007, Article 7 (1)
E.5.2.2 Optimal/efficient packaging and 8 (1)
E.5.3 Durability No
E.5.4 Procurement Practices No
E.5.4.1 Local
E.5.4.2 Certified
E.6 Resource Efficiency
E.6.1 Manufacturing Efficiency No
E.6.2 Eco-Design No
E.7 Climate Action
E.7.1 Carbon Footprint & Carbon Markets No
E.7.1.1 Carbon footprint
E.7.1.2 Carbon markets to off-set GHG emissions (in line
with Ethiopia’s NDCs)
15
E.7.2 Climate Resilience No
E.7.2.1 Equipment, processes and practices to combat
negative impacts of climate change

E.8 Ecosystem Impacts

E.8.1 Biodiversity No
E.8.1.2 Actions to prevent loss to biodiversity
E.8.1.3 Practising urban agriculture within the premises,
if applicable
E.8.2 Habitat Yes, for pesticides as per Pesticide
Registration and Control Proclamation
E.8.2.1 Actions to prevent loss of habitat No 674/2010, Article17 (2c) and 26 (3
E.8.2.3 Bio-based fertilisers and pesticides (if applicable)

16
3 Sector-specific weightage

Criteria Sub-criteria Indicator Garment & Leather & Horticulture Agroprocessing Sugar &
Textile Leather (HC) (AP) sugar-
(GT) Products related
(LP) (SR)
G.1.Sustainability Mission 1 1 2 1 1
Commitment Corporate
Policies 2 2 2 2 2
Management
Systems &
Standards 2 2 2 2 2
Code of Ethics 1 1 1 1 1
G.2.Sustainability Employee
Expertise Training 2 2 2 2 2
Dedicated
Governance Experts &
Resources 2 2 2 2 2
G.3.Sustainability Supply Chain 3 3 2 2 2
Design Product Design 1 1 1 1
G.4.Transparency & Audits 2 2 2 2 2
Accountability Public Disclosure
of Audits
1 1 1 1 1
G.5.Economic Job creation 2 2 2 2 2
Sustainability
Profits

17
 Innovation and
R&D 1 1 2 2 2
SUB-TOTAL 20 20 20 20 20
Social S.1.Employee General Labour
Welfare & Standards Standards
2 2 2 2 2
Child Labour
/Forced Labour
2 2 2 2 2
Salary 3 3 3 3 3
Other Benefits 1 1 1 1 1
Grievance
System 2 2 2 2 2
S.2.Occupational Rules &
Health & Safety Procedures 2 2 2 2 2
Equipment 2 2 2 2 2
Emergency
Response
Mechanisms 2 2 2 2 2
Dedicated
Personnel 2 2 2 2 2
S.3.Training & Health & Safety
Capacity-building Training
3 3 3 3 3
S.4.Equal Fair &
Opportunities Transparent
Hiring Practice 3 3 3 3 3
Inclusive
Workplace 3 3 3 3 3
S.5.Product Safety Testing 2 2 2 2 2
Standards 3 3 3 3 3
S.6.Customer Customer 2 2 2 2 2
Relations Satisfaction

18
 S.7.Local Community Positive Impact
Betterment on Local
Workforce &
Business 3 3 3 3 3
Corporate Social
Responsibility
3 3 3 3 3
SUB-TOTAL 40 40 40 40 40
E.1.Energy Energy
Management
Practices 2 2 2 2 2
Energy
Efficiency 3 2 3 3 3
Renewable
Energy 1 1 1 1 1
Energy
Management
System 2 2 2 2 2
E.2.Water Water
Management
Practices &
Processes 2 2 2 2 2
Environmental Water Efficiency 3 3 3 3 3
E.3.Waste Waste
Management –
Practices &
Processes 2 3 2 2 2
Non-Hazardous
Waste
Management 1 1 1 2 2
Hazardous
Waste
Management 2 2 1 1 1
Awareness
Raising on
Waste 2 2 2 2 2
19
 Management
Practices
E.4.Pollution Air Pollution 2 2 1 1 2
Water Pollution 2 2 1 1 1
Land Pollution 1 1 2 1 1
Noise Pollution 1 1 1 1 2
E.5.Procurement Raw Materials 1 1 2 2 1
Packaging 2 2 2 2 1
Durability 1 1 1 1 1
Procurement
Practices 1 1 1 1 1
E.6.Resource Manufacturing
Efficiency Efficiency
1 1 1 1 1
Eco-Design 2 2 2 2 2
E.7.Climate Action Carbon Footprint
& Carbon
Markets 2 2 2 2 2
Climate
Resilience 1 1 2 2 2
E.8.Ecosystem Biodiversity 1 1 1 1 1
Impacts Habitat 2 2 2 2 2
SUB-TOTAL 40 40 40 40 40

20
4 ESG Guidelines for Companies

International
Criteria Sub-criteria Indicator Guidelines Good
Practices
Governance G.1.Sustainability In your company’s mission statement and vision,
Mission statement
Commitment emphasise how the company will prioritise and
& commitment to
focus on social and environmental sustainability
Sustainability
features.
Design and develop various corporate policies in
compliance with international standards and ensure This ESG
existing policies meet key criteria and are specific factsheet by
to the type, size and sector of your company. Blackstone
Policies could include (but not limited to): provides a
 Brief company description mission
statement as
 Your (environmental, social, governance,
well as a suite
Corporate policies other) impacts
of policies to
 Your plan and commitment to mitigate the
address ESG
impacts
implications.
 Specific objectives and targets
 Management commitment (signed and
approved by top management)
 Continual improvement (dated within the
last year, updated at least yearly)
Management It is good practice to implement formal or informal Some
systems/standards management systems to help plan and organise examples of
your company’s operations. As a company, ISO
consider which management system is most management
relevant. Consider getting external standards are
accreditation/certification/validation including provided here:
international certification and standards such as ISO 26000
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 International
Criteria Sub-criteria Indicator Guidelines Good
Practices
ISO (International Organisation for ISO 14001
Standardisation). OHSAS 18001
A good management system requires top ISO 9001
management commitment, (a) dedicated team ISO 37001
member(s), and a robust plan for implementation
and continual improvement.
A good management system can lead to improved
operations, as well as demonstrate stronger
commitment to your clients/customers and other
stakeholders. Please refer to the various
internationally recognised management standards
in the next column. This is a non-exhaustive list –
and companies should explore which Management
System, certification or similar would be most
suitable to their size and sector.

Companies are strongly recommended to develop The IWAY

and implement formal code of Ethics and ensure (Ikea’s code of
anti-corruption practices are actively undertaken. conduct)
There are many ways to demonstrate ethical provides a good
Efforts towards conduct, including drafting a ‘code of conduct’ example of
ethical conduct highlighting how your company would ensure international
strong ethics in all its operations and beyond. best practice in
developing a
‘code of
conduct’
G.2.Sustainability Employee training Training, awareness and capacity building of all Example ESG
Expertise on ESG employees is critical to implementing sustainability report from an
in any organisation. Companies are strongly organization
recommended to provide regular training to emphasizing on

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 International
Criteria Sub-criteria Indicator Guidelines Good
Practices
employees on various aspects of corporate employee
governance, social, environmental and economic training
sustainability. Training could be both formal and
informal, as best suited to the company’s
operations, and employee skill level.
Companies should have (a) dedicated expert(s) on
ESG training and compliance and maintain ‘skill
matrix’ of trained employees and instructors .
The experts will help implement, adapt and improve
the ESG framework over time and help cascade
Dedicated this along the company’s employee and supply
experts/resources chain.
Companies may not need to employ a specialist for
this position – but could be an existing resource
who is entrusted with this task. This could be a
‘sustainability officer/manager’ or a ‘ESG co-
ordinator’ or similar.
G.3.Sustainability A company’s sustainability efforts are as good as Here is how an
in Operations their supply chain. It is hence important to develop international
and maintain a supplier selection process with well- corporation
defined criteria for shortlisting/ selecting suppliers. manages its
Supplier selection The criteria for selection could include, in addition supply chain:
to their performance and quality, a host of other Supply Chain
Operational, Environmental, Social and Management -
Governance aspects. Mitsubishi
Corporation
Product design Companies should go beyond traditional day to day Refer to the
operations and consider the ‘design’ of the main Design
product (or service), aiming to integrate ESG guidelines for
factors into whole life cycle - from design stages sustainable

23
 International
Criteria Sub-criteria Indicator Guidelines Good
Practices
(i.e. order placement or inception) to end of life packaging -
treatment as well as to directly associated activities Amazon
like packaging and transport. Consider how all of
these activities might have adverse environmental
and social impacts, and how might you mitigate
these.
G.4.Transparency Conduct periodic monitoring and audits on different ISO audit
aspects like financial, social, environmental, checklists can
energy, water and resource efficiency. be used as
Audits could be both formal and informal, internal reference to
and external. It is considered good practice to develop internal
record all observations and corrective actions for all audits
Regular
audits, and highlight the next steps to mitigate any
sustainability-
adverse findings the audit may have highlighted.
linked audits
Your company should aim to conduct at least 2
internal audit annually of various operational
aspects (including environmental, social, energy,
water, waste, resources, etc.) and at least 1
external audit every year.

Public disclosure In the interest of transparency, companies should ESG indicators

of audit reports plan to publish periodic reports covering ESG in Annual
indicators either formally (e.g. on company website) Reports
or informally (e.g. on request) By Federation
of European
Accountants
provide a
references to
ESG KPIs or
indicators

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 International
Criteria Sub-criteria Indicator Guidelines Good
Practices

ESG Reporting
Best Practices-
Harvard Law
School
G.5.Economy Provide information on company’s turnover – this Five ways that
Turnover helps the auditor understand and analyse the ESG creates
associated trend over the recent past. value
Provide information on how many employees are
engaged by the company, including breakdown by By Mckinsey.
Job creation type of employment (permanent/temporary, part- The article
time/full time, etc.). Where possible, provide a emphasises
breakdown by gender, geography, etc. that a strong
Provide the auditor with your profit and ESG
loss/balance sheet for the past few years to help proposition in a
Profits explore the direct, indirect, tangible and intangible company
benefits experienced through implementation of creates value.
sustainability measures.
A robust ESG or sustainability framework helps
attract foreign investments as well as
customers/clients. This information helps the
auditor understand the demands for good ESG
Exports
practices from potential or current international
customers.

Innovation and For companies to thrive in increasingly competitive

R&D local and international markets, it is important to
constantly innovate and invest in Research and
Development to provide products and/or services
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 International
Criteria Sub-criteria Indicator Guidelines Good
Practices
that meet and exceed customer expectations
including quality and sustainability. International
good practice is for companies to plan to
invest/allocate a percentage of their turnover
towards innovation/R&D/ESG related activities to
become resilient as well as to meet international
standards in operations and strategies
Social S.1.General A robust company is often defined by a low Core Labour
Labour Standards turnaround of its employees. Good labour practices standards-
and standards help retain staff and grow their Handbook by
General labour loyalty. Companies should ensure appropriate, ILO
standards adequate and suitable labour conditions, as well as
a host of robust policies, procedures and
corresponding practices to ensure welfare and well-
being of all employees.
It is critical to ensure that no child or forced labour Addressing
practices are associated with the company Child Labour in
including its extended supply chain. Companies workplace and
should develop and implement policies/practices supply chain . A
Child/Forced
against child labour, forced labour or exploitation of good practice
labour
any vulnerable section, and ensure these are note from
monitored and practiced. International
Finance
Corporation.
Companies should ensure pay parity and An reference
professional growth among employees, providing article detailing
Salary
their opportunities for growth and professional the best
development, without any discrimination. practices with
Other benefits International good practices are to provide benefits respect to
for employee well-being in the form of family/health employee

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 International
Criteria Sub-criteria Indicator Guidelines Good
Practices
insurance, paid leave, maternity or paternity leave benefits
and capacity development programmes.

Companies should establish and maintain a secure, Employee

anonymised mechanism for grievance expression grievance
and redressal for workers. The grievance system mechanism -
Grievance System
should be monitored to ensure that any complaints EBRD
or suggestions are addressed without bias, and
within a optimal time period.
S.2.Occupational Develop a robust Health and Safety Policy in lines Recommended
Health & Safety with best practice. Implement health and safety Practices for
across all levels of the company through defined Health and
rules and procedures. Raise awareness of all Safety
employees and sub-contractors associated with the programs
company through manuals, posters as well as
Rules &
campaigns addressing all relevant aspects like
Procedures
manual handling, working at heights, slips, trips and
falls, fire safety, PPE, emergency response, first aid
etc).
Monitor and maintain records on work related
accidents and provide adequate compensation
during such occurrence.
Equipment Companies have a legal liability to provide relevant
tools and equipment to perform the job as well as
ensure safety and well-being of those using
operating it. Companies have an obligation to
ensure provision of suitable and appropriate
Personal Protective Equipment (PPE), first aid kits
and other safety guards at all stages in the

27
 International
Criteria Sub-criteria Indicator Guidelines Good
Practices
company operation.
All companies should be adequately prepared to
respond to any emergencies including fire, natural
disasters or other man-made emergencies.
Emergency It is considered good practice for companies to
response develop suitable mechanisms (including policies,
mechanisms procedures and relevant tools and equipment) to
mitigate emergencies along with frequent conduct
of emergency drills and provision of marked
emergency exit and assembly points.
Companies should have a nominated dedicated at
least one H&S representative/expert and ensure at
least one trained first aid personnel for every 50
Dedicated employees.
personnel There should be nominated ‘emergency
evacuation’ members who can help with the
evacuation of the premises and safety of all
workers during an emergency.
Provide H&S training at regular intervals for all Education and
employees and sub-contractors. Training should be Training- OSHA
relevant to the employee type (e.g. Managing
Safely for Managers and Working Safely training for
S.3.Training and Health and Safety
workers and other employees). Training can be
capacity building training
formal (done periodically for all employees covering
all major aspects of H&S requirements) and
informal (could be done as and when required in
forms of tool-box talks or similar)
S.4.Equal Fair and International good practices require a fair, equal Good Practice
opportunities transparent hiring and transparent practices across the organisation, Note Non-
practice including during recruitment. Companies are Discrimination

28
 International
Criteria Sub-criteria Indicator Guidelines Good
Practices
recommended to develop and establish policies
and corresponding practices for non-discrimination
and equal opportunities in all aspects of the
company’s work including hiring/recruitment.
The company’s operations and activities should be
fully inclusive, providing unbiased opportunities to and Equal
one and all without any discrimination based on Opportunity
gender, colour, race, sexual orientation, age, or any
Inclusive
other parameter except for suitability for the job to
workplace
be performed.
Many international companies set targets for a
minimum percentage of women employees as best
practice in creating an inclusive workplace.
Companies should aim to establish strong ISO and
processes for robust Quality Control (Q.C.) at all consumers
Testing stages of production to ensure quality, build and
maintain customer trust and to ensure safety and
well-being of customers.
S.5.Product safety
Develop processes and framework for product ISO Quality
quality and safety in line with national and policy checklist
Standards international quality standards.
ISO Consumer
Product Safety
For any company, customer satisfaction is Tips to
paramount and a primary measure of success. In measure
S.6.Customer Customer order to achieve this, companies should develop customer
relations satisfaction and implement processes to provide sales, after- satisfaction
sales and/or services at par with international
standards.
S.7.Local Positive impact on Providing employment or business to local An article/blog
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 International
Criteria Sub-criteria Indicator Guidelines Good
Practices
residents or businesses in the vicinity of your
business helps boost the local economy, as well as
local workforce builds a better community spirit. Where possible,
and business companies should prioritise and boost local
representation of service providers/suppliers and identifying three
community employees. CSR best
betterment The foundation of CSR is boosting the local practices for
community through various activities that are businesses
Corporate Social relevant and impactful. Companies should look to
Responsibility spend a percentage of their annual profits to
undertake CSR activities through community
improvement projects and awareness programs.
Environment E.1.Environmental An Environmental Management System helps ISO
Management companies identify their key aspects and impacts, 14001:2015 –
set targets and objectives and measure standard for
Environmental performance through a series of internal and audits, environmental
Management while focusing on continuous improvement. management
System International EMS such as ISO14001 are examples systems
of best practice, but companies can also look to
develop other informal (or in-house) EMS that can
address the key criteria of such a system. .
Environmental “What cannot be measured, cannot be controlled.” Guidance on
Audits In order to identify environmental impacts and conducting
mitigate these, companies must regularly audit the environmental
3 Ps (Premises, Processes and People). Internal audit
audits help monitor a company’s environmental
performance and take any mitigative action.
External audits help validate the results. In addition
to formal audits, companies should have a strategy
for monitoring environmental performance through

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 International
Criteria Sub-criteria Indicator Guidelines Good
Practices
monitoring plans and regular risk assessments.
Companies should regularly monitor and record
Energy breakdown of energy use and source(s) in order to
Management get a better understanding of how and where the
Practices energy is used, and to identify any potential leaks
or adverse use.
There are various opportunities to implement
energy efficiency in companies. Based on energy
use, a company can decide on a short, medium
and a long term plan for implementing energy
efficiency measures. This could include short term
(potentially low cost) actions such as maximise use
Energy Efficiency
of natural light/temperature; medium term actions
(e.g. improving process efficiency in manufacturing)
Energy Audit
and long term actions (e.g. considering installing
Handbook
E.2.Energy new machines to replace existing less efficient
ones).

An energy audit/monitoring plan can highlight the

various uses of energy (heating, cooling, lighting,
Energy Audits refrigeration, machineries, equipment and other).
Undertake regular monitoring/ audits of energy
consumption
Companies should consider any opportunities to
increase share of renewable energy (e.g. wind,
Renewable Energy solar, hydro, or others). Where possible, explore
opportunities for synergies with neighbouring firms
for improved cost efficiency.
Energy For companies with significant energy use, ISO 50001
Management consider the option to develop formal policies, standard for
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 International
Criteria Sub-criteria Indicator Guidelines Good
Practices
procedures and practices for managing energy energy
including the potential to implement either a formal management
or informal energy management system. Such a systems
System
management system will help you company to
record energy usage, monitor it and create a
targeted plan for improvement.
In order to manage the use and disposal of water, it
is highlight recommended for water intensive
companies to regularly record data for water
Water consumption and discharge to analyse the use and
Management – discharge patterns for better understanding and
Practices & management of water.
Processes It is also highly recommended that water intensive
companies (e.g. clothing/garment, horticulture)
have water meter in place for accurate recording of
such data. Water Manual-
E.3.Water
Better and efficient use of water can be achieved CII
by monitoring leaks and/or over-use within the
premises including plants, processes and offices
Water Efficiency
and implementing less water intensive processes in
place for water reuse and recycling, including
rainwater harvesting, reverse boring or similar.
All companies, especially those with high water use
and discharge are highly recommended to
Water Audits
undertake frequent audits for monitoring water use
and discharge.
E.4.Waste Waste For better management of its various waste Guide for
Management – streams, companies should undertake regular Industrial
Practices & monitoring of its waste stream to identify and Waste
Processes segregate waste streams i.e. hazardous, non- Management-
32
 International
Criteria Sub-criteria Indicator Guidelines Good
Practices
hazardous (recyclable, non-recyclable,
compostable). This helps in improved management
of waste generated through company operations.
Consider whether the company can become a
‘zero-waste’ company in the medium or long term
through implementation of the Waste Hierarchy
(Eliminate  Reduce  Reuse  Refurbish/ re-
engineer  Energy from Waste  Recycle 
Dispose)
All companies must monitor and record non-
Non-Hazardous
hazardous waste produced and ensure sound
Waste
management plan is in place adequately and
Management EPA
suitably manage the waste generated.
For companies producing any hazardous waste
(including batteries, solvents, etc. through day to
Hazardous Waste day maintenance), it is important to monitor and
Management record hazardous waste produced and ensure that
the waste is managed in an environmentally
responsible manner.
More often than not, poor waste management is a
Awareness
result of lack of awareness. It is hence important to
Raising on Waste
develop and raise awareness on waste
Management
management practices and processes in place at
Practices
the company.
E.5.Pollution Companies should establish measures for Best available
identifying measuring, monitoring and mitigating air techniques to
Air Pollution
pollutants as a result of their activities or any other prevent and
directly associated activities. control
Water Pollution All companies must identify the adverse impacts of industrial
their operations on the quality of water (through pollution by
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 International
Criteria Sub-criteria Indicator Guidelines Good
Practices
drains, sewers and any other discharge means) OECD
and implement, where applicable, suitable and
appropriate waste water treatment techniques to
mitigate the impact.
Many company activities such as dusting, transport
and/or other processes could lead to land pollution.
All companies should assess the impacts of their
Land Pollution company activities and processes on the land there
are resident on, and its immediate surrounding and
record, report and mitigate any adverse impact on
land through pollution.
Noise and vibrations are considered to be
nuisances that could cause significant impact to the
local environment and those within the sensitive
area. For companies that produce high noise (>80
dB), it is considered best practice to measure and
Noise Pollution
mitigate noise levels caused by company
operations through use of quitter/fixed parts;
acoustic silencers; using noise absorbing lining;
noise proofing the area; restricting operational
hours of noisy activities; etc.
E.6.Procurement Raw Material By considering the raw material to be produced, An article
Consideration companies can help significantly reduce their detailing
environmental and social impact. For example, sustainable
reducing carbon miles by buying locally; replacing supplier
raw material with a more eco-friendly material, etc. engagement
In some cases, this may not be possible due to the and best
nature of a company’s product or client requirement practices
or cost consideration. In such cases, a company
should look at the Best Practicable Environmental

34
 International
Criteria Sub-criteria Indicator Guidelines Good
Practices
Option (BPEO) for this consideration.
Companies can look at significantly reducing the
impact of their whole life cycle by reducing or
replacing packaging materials. Here, companies
Packaging
have the opportunity to extend sustainability and
circularity with non-product related activities such
as packaging.
A long life product means less waste generated at
regular intervals. Companies should aim to develop
Durability
products with higher durability to increase its
lifespan and to reduce waste.
Considering strengthening procurement practices
by encouraging local sourcing and procurement
whilst ensuring sustainability
standards/certifications are met. Companies could
Procurement look at buying more sustainable or responsible raw
Practices materials (e.g. organic, fair trade). Simpler actions
such as buying recycled paper in offices, or
procuring energy efficient office equipment could
also have a significant positive impact on the
company’s environmental and social footprint.
E.7.Resource It is recommended for companies to identify EREK
Efficiency opportunities to increase efficiency of Database of
Manufacturing
manufacturing, operations, processes for more Resource
Efficiency
efficient use of resources, and to manufacture (a) Efficiency
less carbon-intensive product(s).
Eco-Design It is advisable for companies to make design
considerations at early stages to optimise resource
use. Eco-design helps in the systematic
incorporation of life cycle considerations into
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 International
Criteria Sub-criteria Indicator Guidelines Good
Practices
the design of products, processes or services, and
adds a sustainable value to the company’s
strategy.

Develop methodology to assess carbon footprint

and conduct periodic assessment of the company’s
Resilience Plan
carbon impacts. Develop a long term plan to reduce
the carbon impacts and increase resilience. EIB project
E.8.Climate Action As highlighted by any environmental audits, identify carbon footprint
and invest in specific equipment, processes and methodology
Reducing Climate
practices to combat the negative impacts of the
Impacts
climate change. Consider the climate impacts of the
company processes, operations and premises.
Many birds and animals, often endangered species,
could be within a few miles of your company
operations based within sensitive receptors and
could be further endangered due to specific
Biodiversity
company activities. It is good practice to assess the
impact of company activities (including any An article on
E.9.Ecosystem
construction on site) on local biodiversity and impact of ESG
Impacts
mitigate this. on biodiversity
For all of its company’s activities, it is good practice
to assess if these lead to loss of habitat for any
Habitat local biodiversity. If any negative impacts are noted,
companies have an obligation to implement steps
to counter the same.

36
5 ESG Assessment framework

Attached as an excel file along with this report