This toolkit is designed to help

Micro, Small, and Medium

Enterprises (MSMEs) in East
Africa evaluate their current
performance in Environmental,
Social, and Governance (ESG)
practices.

DEVELOPED BY SCRIBE SERVICES REGISTRARS LIMITED &

SHARED VALUE KENYA
Introduction
Purpose: This toolkit is designed to help Micro, Small, and
Medium Enterprises (MSMEs) in East Africa evaluate their current
performance in Environmental, Social, and Governance (ESG)
practices. By completing this self-assessment, businesses can:
Identify strengths and areas for improvement.
Prepare for supply chain requirements from local and
international buyers.
Enhance market competitiveness and access to finance.
Build resilience, improve operational efficiency, and foster
trust within their communities.
Lay the groundwork for future certifications (e.g., ISO 14001,
SA8000, Fair Trade).

How to Use This Toolkit:

1.Read each statement carefully.
2.For each statement, mark one of the three boxes:
Yes: This is already in place and operational.
Continuous Improvement Plan (CIP): This is not fully in
place, but we have a documented plan to achieve it.
Needs Assistance: This is not in place, and we need
external support or resources to implement it.
3.Use the "Notes & Action Steps" column to jot down immediate
ideas, responsible persons, or deadlines.
4.Review your results to prioritize actions that will have the
biggest impact on your business and stakeholder
expectations.
ESG Self-Assessment
Checklist for MSMEs
Business Name: _________________________
Date of Assessment: ____________________
Assessed by: ___________________________

Notes &
Needs
Assessment Area Yes CIP Action
Assistance
Steps

SOCIAL (S) – Workforce, Community & Human Rights

S1. Fair Wages & Contracts: We pay at least the national or

regional minimum wage and provide clear, written
employment contracts that comply with East African labour
laws.

S2. Safe Working Conditions: We provide a safe, clean, and

well-ventilated work environment, with necessary safety
equipment (e.g., for manufacturing, agriculture). We have a
basic first-aid kit and a record of any incidents.

S3. No Child or Forced Labour: We have a verifiable policy

against child and forced labour. We systematically check
the age of employees and their right to work.

S4. Diversity & Non-Discrimination: We hire, pay, and

promote based on merit and ability, not based on ethnicity,
tribe, gender, religion, or disability.

S5. Community Engagement: We positively engage with our

local community, e.g., through local hiring, sourcing from
local suppliers, or supporting a local community project
(school, health centre, etc.).

S6. Employee Well-being: We respect working hours and

limit excessive overtime. We have a policy against
harassment and bullying.

S7. Skills Development: We provide opportunities for

employee training and skills development (e.g., on-the-job
training, sponsoring relevant courses).
 Notes &
Needs
GOVERNANCE (G) – Ethics, Transparency & Management Yes CIP Action
Assistance
Steps

G1. Core Values & Ethics: Integrity and ethical conduct are
stated values of our business, understood by all employees.

G2. Code of Conduct: We have a simple, written code of

conduct for employees that covers anti-bribery, anti-
corruption, and fair dealing.

G3. Financial Transparency: We maintain accurate and

transparent financial records (books of accounts) according
to basic accounting principles.

G4. Tax Compliance: We file and pay all relevant taxes (e.g.,
income tax, VAT, business permits) on time to the relevant
authorities (e.g., TRA, URA, KRA).

G5. Whistleblowing Policy: Employees have a safe,

confidential way to report unethical behaviour without fear
of retaliation (e.g., a suggestion box, a designated trusted
manager).

G6. Responsible Sourcing: We ask our key suppliers about

their own social and environmental practices, preferring
those who operate responsibly.

G7. Conflict of Interest: Key decision-makers in procurement

and hiring are required to declare any potential conflicts of
interest.

G8. Data Privacy: We have a policy for responsibly handling

and protecting customer and employee data.
 Notes
Needs
&
ENVIRONMENT (E) – Footprint & Resource Management Yes CIP Assista
Action
nce
Steps

E1. Legal Compliance: We comply with relevant national

environmental laws and regulations (e.g., waste disposal,
water abstraction, pollution).

E2. Resource Efficiency (Water/Energy): We track and

actively look for ways to reduce our water and electricity
consumption (e.g., fixing leaks, using energy-efficient bulbs,
switching off equipment).

E3. Waste Management: We have a system for waste

separation (e.g., recyclables vs. general waste) and work
with licensed waste collectors. We minimize the use of
single-use plastics.

E4. Sustainable Inputs: Where possible, we source

sustainable, local, or recycled raw materials to reduce
environmental impact and support the local economy.

E5. Pollution Prevention: We take measures to prevent

pollution of air, water, and soil from our operations (e.g.,
proper storage of chemicals, managing wastewater).

E6. Climate Resilience: We are aware of climate-related risks

to our business (e.g., drought, floods) and are developing
strategies to adapt.

ESG INTEGRATION

I1. Designated Responsibility: Someone in the company is

clearly responsible for overseeing ESG improvements.

I2. Customer Requirements: We understand the specific

ESG requirements (e.g., codes of conduct) of our key
buyers/export markets.

I3. Continuous Improvement: We review this self-

assessment annually to track our progress on ESG goals.
Appendix: East African Context &
Implementation Guidance
Why This Matters for East African MSMEs:

Market Access: Large buyers in Europe (e.g., under the EU

Green Deal), the US, and even within Africa (e.g., supermarket
chains) now require suppliers to demonstrate ethical and
sustainable practices. This checklist is your first step to
meeting those requirements.
Finance: Banks and impact investors are increasingly using
ESG criteria to evaluate loan applications. A good ESG profile
can make it easier and cheaper to access capital.
Competitiveness: Efficient use of resources (energy, water,
materials) directly reduces operational costs. A happy,
healthy workforce is more productive and has lower turnover.
Risk Management: Good governance and environmental
compliance protect your business from legal problems, fines,
and reputational damage.

Key Regional Regulations & Standards to Be Aware Of:

Environmental: EAC Climate Change Policy, national

regulations on waste management (e.g., Plastic Bag Bans in
Kenya, Rwanda), water use, and emissions.
Social: EAC Common Market Protocol (right of workers),
national labour laws governing wages, working hours, and
health & safety.
Governance: Anti-Corruption Laws (e.g., EAC Anti-Corruption
Act, national bodies like EACC in Kenya), company law, and
tax regulations.
Appendix: East African Context &
Implementation Guidance

First Steps for Implementation:

1.Start Small: Don't try to do everything at once. Pick 2-3

"Needs Assistance" or "CIP" items that are most critical for
your business or most demanded by your customers.
2.Engage Your Team: Discuss the results with your employees.
They often have the best ideas for improvements, especially
on social (S) and environmental (E) issues.
3.Seek Support: Look for help from:
Business Membership Organizations (BMOs): Your local
chamber of commerce, industry association, or SME
network.
Government Agencies: Ministries of Trade, Industry, and
Environment often have support programs.
Development Partners: Programs funded by USAID, GIZ,
UNDP, or the World Bank often offer ESG and standards
training.
Consultants: Local consultants specializing in quality
standards, ESG, or export readiness.

This toolkit is a living document. Revisit it regularly to measure

your progress and continue your journey towards sustainable and
competitive growth in the East African community and beyond.
 CONTACT US

[email protected]

www.scriberegistrars.com