KOKO clean cooking projects

MIGA was requested to provide guarantees to cover equity and/or shareholder loan investment by KOKO Networks Limited of Mauritius (KOKO or Guarantee Holder),​​ into KOKO Networks Limited in Kenya (KOKO Kenya) and KOKO Networks Rwanda Limited (KOKO Rwanda) respectively (together, ‘the Project Companies’) for up to 15 years.  

The project consists of the operation of clean cooking utility businesses in Kenya and Rwanda through the promotion and distribution of bioethanol-based cookstoves and bioethanol cooking fuel to households, ​through​ small and medium-sized enterprises by KOKO Kenya and KOKO Rwanda. Since its commercial launch in Kenya in 2019, KOKO has reached a customer base of ​more than ​1 million households and ​deployed​ about ​​3,000 KOKO​ P​oints, a network of cloud-connected bioethanol vending machines. Based on its established business operations in the country, KOKO is planning to expand its Kenya business to serve an additional 3 million households nationwide over the next 5 years. The Rwanda Project is currently in pilot phase with approximately ​63​​​​​ KOKO​ P​oints in Kigali. KOKO ​has potential to ​​increase its customer​ base in rural, peri-urban and urban areas of Rwanda to reach 1,000,000 over five years. Currently, the Project Companies operate in regional areas of Nairobi, Mombasa, Kisumu, Eldoret, and Nakuru in Kenya, and in Kigali and its suburbs in Rwanda.  

The cookstove kit consists of a two-burner bioethanol stove and a canister equipped with a near-field communication chip (NFC) that enables tracking of ​customer​​ kit-linked ​fuel purchases. Customers can purchase fuel and refill their canisters in KOKO Points. The KOKO Points are typically installed in​side​ local small-size convenience shops, the owners of which become authorized ​“​KOKO ​A​gents​”​. As of February 2024, ​KOKO has​ around 3,000 KOKO ​A​gents in Kenya. 

KOKO’s cookstoves are manufactured by a product design and manufacturing company headquartered in India​ that was ​acquired ​by KOKO ​in September 2018. ​The company​ operat​es​ a ​110​,000 square feet manufacturing facility in Gujarat, India, for mass production of KOKO’s bioethanol cookstoves ​and canisters ​destined for export to multiple markets across Africa. The Project Companies run marketing and customer communication campaigns and distribute the stoves​ and canisters​ through their​ network of Agent ​shops. 

KOKO Kenya has contracted Vivo Energy Kenya (Vivo) for the procurement​, storage,​ and transportation of bioethanol​ cooking fuel​ and is using Vivo’s ​liquid fuel ​infrastructure ​including ​​     ​storage tanks in the port of Mombasa and fuel trucks​ and service stations across Kenya​. KOKO Rwanda ​has ​similarly contracted Vivo Energy Rwanda, branded as Engen, for procurement and distribution of bioethanol. KOKO Kenya and KOKO Rwanda have control over the selection of the bioethanol suppliers. Since 2019, the Project Companies have purchased bioethanol from multiple suppliers from East Africa, North and South America but in future are planning to purchase primarily from East African suppliers.​     ​ 

Vivo is responsible for ​collecting denatured​ bioethanol from​ suppliers ​​delivering it ​to the local ​service​ stations where the bioethanol is stored in Vivo’s underground storage tanks designated for bioethanol. Project Companies then have a dedicated fleet of smaller fuel trucks, the micro-tankers, that transport the bioethanol to the nearby residential and commercial areas to refill the KOKO ​P​oints. Project companies also establish so-called “SASA shops”, which are agent shops exclusively dedicated to offering a canister-swap service, where households can exchange an empty canister for a full one. 

KOKO Kenya ​​​​leases eight buildings in Nairobi including warehouses, office spaces, and operations center. KOKO Kenya operations center consists of customer service division, networks operations center, hardware and software IT support, assembly hall for large components of the KOKO Points, bioethanol testing lab and research development lab. On the other hand, KOKO Rwanda operates one operations center in Kigali consisting of ​a ​customer support center and bioethanol testing lab. It uses a warehouse of a contracted logistics company for storage and transportation of equipment, mainly the stoves and KOKO Points.  

The Project is categorized as Category B according to MIGA’s Policy on Environmental and Social Sustainability (2013). The Project is expected to have limited site-specific environmental and social (E&S) impacts and risks. These impacts and risks can be avoided or mitigated by adhering to recognized Performance Standards (PSs), Environmental, Health and Safety (EHS) guidelines, and design criteria. Key E&S risks associated with this investment include: (i) corporate EHS management structure and systems; (ii) life, fire and safety associated with bioethanol storage and transportation; (iii) labor and working conditions including adequate occupational health and safety (OHS) in the supply chain; (iv) community health and safety along the transportation routes; and (v) impacts on biodiversity in the bioethanol supply chain. 

While all PSs are applicable to this investment, based on current information, the investment will have impacts which must be managed in a manner consistent with the following PSs: 

• PS1: Assessment and Management of Environmental and Social Risks and Impacts 
• PS2: Labor and Working Conditions 
• PS3: Resource Efficiency and Pollution Prevention  
• PS4: Community Health, Safety and Security 
• PS6: Biodiversity Conservation and Sustainable Management of Living Natural Resources 

There are no impacts related to the following PSs thus they are not triggered for the Project: to PS5 Land Acquisition and Involuntary Resettlement; PS7 Indigenous People’s or PS8 Cultural Heritage.  

In addition, the following World Bank Group Environmental, Health, and Safety (WBG EHS) Guidelines are applicable to the Project: 

• Environmental, Health and Safety (WBG EHS) General Guidelines (2007) 

The following key documents were reviewed by MIGA:  

• Environmental Impact Assessment Summary Project Report. Proposed KOKO New Offices at Rivaan Center, Oct 2023 
• Annual environmental audit report for KOKO Networks Limited at Rivaan Center, Feb 2024 
• KOKO Networks. Environmental and Social Due Diligence -Rwanda, ERM Consulting East Africa Limited (ERM), Nov 2023 
• KOKO Networks. Environmental and Social Due Diligence -Kenya, ERM, Nov 2023 
• Global Employee Handbook KOKO Networks, Nov 2023 
• KOKO Networks, Health and Safety Strategy, Jul 2019 
• KOKO Networks Health, Safety, Environment Standard Operating Procedures (SOPs) 
• KOKO Stakeholder Engagement Overview, Oct 2023 
• Material Safety Data Sheet (MSDS). Technical Alcohol for cook stoves. Jul 2018 
• KOKO Networks Limited Supplier Code of Conduct Nov 2023 
• Screenshots of the Project Companies Health Safety and Environment (HSE) dashboard 

In addition to reviewing the above documents, MIGA carried out an E&S due diligence visit in February 2024 to the Project Companies which included meetings with key E&S staff and management, regulatory authorities, and communities, as well as visiting the Projects retail and warehouse sites.  

KOKO has contracted an independent international E&S firm, ERM Consulting East Africa Limited, who undertook an E&S due diligence process for both Project Companies, and identified gaps that required the development of further E&S risk management policies and procedures aligned to MIGA’s PSs

MIGA’s due diligence review considered the E&S management planning process and documentation for the Projects and identified gaps between these and MIGA’s requirements. Where necessary, corrective measures, intended to close these gaps within a reasonable time period, are summarized in the paragraphs that follow and in the Environmental and Social Action Plan (ESAP) attached to this ESRS.  Through the implementation of these measures, the Projects are expected to be designed and operated in accordance with the Performance Standards. 

Key E&S issues associated with the Project business activities are summarized in the paragraphs that follow. 

PS1:  Assessment and Management of Environmental and Social Risks and Impacts 

Environmental and Social Management System: The Project Companies’ ESMS is still in the development stage and currently consists of standalone procedures developed at different times to address evolving E&S risks. The Project Companies developed a Health and Safety Strategy document (Jul 2019) that includes Health and Safety Policy, regulatory compliance, auditing, key metrics and communication and training programs. The Project will update the Project’s Environmental and Social Management System and associated plans and procedures for each Project Company in line with the requirements of the MIGA PSs to be appropriate to the nature and scale of the Project, specify compliance with applicable E&S laws and standards and  incorporate the following elements: (i) policy; (ii) identification of risks and impacts; (iii) management programs; (iv) organizational capacity and competency; (v) emergency preparedness and response; (vi) stakeholder engagement; and (vii) monitoring and review (ESAP action item). 

Policy. At the group level, KOKO has developed an Environmental Policy Statement (Jan 2021) that describes KOKO’s commitments to sustainable development. The Project Companies will develop their own E&S Policy documents defining the environmental and social objectives and principles that guide the Project, provide a framework for the environmental and social assessment and management process, and specify that the Project will comply with the applicable Rwandan and Kenyan laws and regulations (ESAP action item). 

Identification of Risks and Impacts. As per National Environmental Management Authority (NEMA)​ the Environmental Management and Coordination Ac​​t​​ (1999) and Environmental (Impact Assessment and Audit) Regulations 2003 (Kenya) ​, ​​​​KOKO Kenya has conducted Environmental Impact Assessment (EIA) for all office and warehouse locations. EIA  reports were made available for public review. ​​Both, in Rwanda and Kenya, EIAs are required for service and fuel stations, and therefore, fall under VIVO’s responsibility. 

The Project Companies developed Hazards and Effects Management Process (HEMP) that is focused on storage, transportation, and delivery of bioethanol to the end consumers, as well as the use of the cookstoves. HEMP contains risk assessment matrices for hazards (spills, fires, injuries) associated with each step of ​     ​bioethanol ​distribution​​     ​ and describes controls, recovery measures and remedial actions for each hazard. The Project Companies will conduct a periodic review of HEMP to ensure that risk assessment is up to date and that the measures specified in HEMP are in place (ESAP item).     

Management Programs: The Project Companies developed policies and standard operating procedures (SOPs) that address key risks associated with project activities including such aspects as ethanol spill management, incident escalation process, company vehicle policy, emergency response, internal audits, waste management, safety violation resolution, non-conforming ethanol fuel disposal, medical examination, E-waste policy, personal protection equipment (PPE). The Project has also developed an HSE Dashboard ​which ​​     ​serves as a management tool to plan for and check the status of the regulatory compliance, E&S inspections and audits, E&S induction and training. The dashboard is also used to register OHS and E&S accidents and incidents and follow up on investigations. The Project Companies will ensure that the E&S management programs are commensurate to the risks indicated in the HEMP. Project Companies will develop Environmental and Social Management Plans (ESMPs) for each Project Company. These plans will be based on the risks identified in the HEMP specifying time period, resources, responsibilities, change management, provisions for monitoring and review, and will also cover contractors’ management (ESAP item). 

Organizational Capacity and Competency: Currently the overall responsibility for the E&S management lies with the KOKO’s Chief Operating Officer (COO). Each Project Company has assigned experienced and competent Environment, Health and Safety (EHS) Managers based in Nairobi and Kigali respectively. Based on the organizational chart, EHS team reports directly to Project Companies’ managing directors. KOKO Kenya has also assigned five EHS coordinators in the regions where KOKO operates. EHS coordinators will also be hired in KOKO Rwanda as the operations in this country progress. The Project Companies have also assigned HR Manager at each Project Company.   

Emergency Preparedness and Response KOKO Kenya has developed a detailed emergency response (ER) SOP (Apr 2020) that includes measures to prepare for and respond to emergencies such as fire, fuel spills, security, and traffic incidents that could occur at the warehouses, the agent shops, and the offices. The ER SOP is site specific and includes the escalation matrix and emergency contacts, which are also clearly displayed at KOKO Kenya’s notice boards. KOKO Kenya regularly conducts fire safety training for its staff. As per the ESAP, KOKO Rwanda will develop a site-specific ERP for its Rwanda’s operations, which will include a training plan for staff including fire marshals (ESAP item).  

Firefighting equipment at the KOKO Kenya and KOKO Rwanda offices and warehouses is appropriate to the risk. The facilities are fitted with fire extinguishers, fire hose reels, smoke detectors and a fire alarm system. All fire firefighting equipment has valid inspection stickers. Emergency exits and fire assembly points are clearly marked, and smoking is prohibited. Each KOKO Point is equipped with ​a​ fire extinguisher and KOKO ​A​gents receive training on their use. 

Monitoring and Review: As per NEMA legislation KOKO Kenya contracts independent environmental consulting company to conduct annual environmental audits. The audit reports are submitted for NEMA review and clearance. Audit reports contain infromation about the compliance of the project with the national legislation and progress against the Environmental and Social Management Plans published as a part of the EIA documentation. 

KOKO COO has an over​all​ responsibility to maintain and update the HSE Dashboard. The HSE Dashboard incorporates regulatory compliance and licensing tracker as well as staff training, field inspections, HSE statistics, inductions, and safety events. The dashboard is updated monthly from data received during the month. The Project Companies also engage third-party contractors to carry out monitoring activities focused on compliance with the national environmental and HSE regulations. For example, for KOKO Kenya, a Fire Safety Auditor approved by the Directorate of Occupational Safety and Health Services (DOSHS) conducts fire safety audits of KOKO Kenya offices and warehouses.  

As per the ESAP, the Project Companies will conduct periodic performance reviews of the effectiveness of the ESMS including HEMP and SOPs based on which the KOKO’s senior management will take the necessary steps to ensure that procedures, practices, and plans are being implemented, and are seen to be effective. Each Project Company will develop an E&S Monitoring Plan that would describe responsibilities, KPIs, and concrete actions to monitor and improve performance (ESAP item). 

Project Companies will develop and submit Annual Monitoring Reports to MIGA.  

Stakeholder Engagement: KOKO Kenya developed a Stakeholder Engagement Overview Document (Oct 2023) in line with the requirements of PS 1 which outlines KOKO Kenya’s Areas of Influence (AoI), the types of stakeholders, methodology of engagement, typical engagement activities and feedback mechanism. KOKO Kenya stakeholder engagements include affected neighborhoods, job seekers, local leaders, government representatives, Non-Government Organizations (NGOs, local businesses, service providers and suppliers). 

As per the ESAP, KOKO Kenya’s Stakeholder Engagement Overview Document will be updated and KOKO Rwanda stakeholder engagement document will be developed in compliance with MIGA PS 1, and will include the following elements: stakeholder mapping and analysis, reference to local regulations and international standards), description of risks and impacts, summary of ongoing and previous engagement, participation of the vulnerable groups, description of Grievance Redress Mechanisms (GRM), list of time-bound activities and resources and responsibilities. 

​​​​​External Communication and Grievance Mechanisms: As described in the Stakeholder Engagement Overview Document, for external grievances, KOKO Kenya has established a toll-free number with a two-way Short Message Service (SMS), for receiving external grievances or customer issues. The USSD number and toll-free number are displayed on each KOKO​ P​​oint. The USSD number and customer service numbers are​ also​ available on KOKO’s official website www.kokofuel.com. Customer complaints typically relate to routine wear and tear, incorrect operation of cookers and canisters, and payment issues. KOKO’s Customer Care team escalates these issues to the relevant teams for back-end resolution. For contractors and suppliers associated with KOKO, the Whistleblower hotline serves as a dedicated channel for addressing grievances. For grievances that extend beyond customer service, such as those involving community or public affairs, the Public Affairs department is responsible for liaising with government entities, NGOs, and media. KOKO Kenya will update the external grievance redress mechanism documentation in line with PS 1 and describe the process for receiving, addressing, and recording/documenting complaints and communications from external stakeholders. KOKO Rwanda will develop the grievance redress mechanism for external grievances in line with PS1 (ESAP item).  

PS2:  Labor and Working Conditions 

The Pes currently employ a total of 984 local staff (908 in Kenya and 76 in Rwanda), of which 43% are female. Of these 984 local staff, 80% are full-time direct hires, while 20% are short-term (consultants, contractors, interns, etc.).  Staff are based in peri-urban and urban locations, aligned to the location of offices, warehouses and retail shops in the respective Pes. There are currently around 20 people in the HR department le​d by the HR Manager.   

Working Conditions and Management of Worker Relationship: KOKO has developed a global Employee Handbook (last updated in Nov 2023) that applies to Project Companies. It includes the HR Policies and Procedures covering such aspects as KOKO’s Code of Conduct, commitment to diversity, equity & inclusion, drug & alcohol policy, recruitment and performance management, ​remuneration​​​, leave, termination of employment, internal grievance mechanism, whistleblowing policy, overtime policy, salary advance policy, health and safety policy, and social media policy. The KOKO’s Code of Conduct contains Policy Against Sexual Harassment and Prohibited Conduct which describes the definition and types of sexual harassment, company and employees’ obligations and the repercussions for the violators. The Employee Handbook and relevant HR Policies and Procedures will be adopted for each Project Company, will be updated to align with requirements of PS2 and cover such issues as retrenchment, worker organizations and prohibition of child and forced labor (ESAP item).  

Working conditions and terms of employment are stipulated in the employment contracts. Generally, Project Companies’ staff is issued with two-year term contracts that are renewable. Contracts contain such info​r​mation as position, start date, probation, notice period, job title and responsibilities, reporting line, remuneration, working hours, leave, disciplinary, termination, confidentiality, exclusivity of employment, intellectual property, non-solicitation, non-disparagement, governing law, warnings, redundancy, and summary dismissal. ​For those eligible, o​vertime is considered in cases when employees work more than 45 hours a week, or work beyond 6.00pm. 

Grievance Mechanism: The Employee Handbook includes a Grievance Policy that describes a staged approach for internal grievances management and resolution. Grievance mechanism is accessible to all employees and contractors. The Policy also provides an opportunity to file grievances confidentially via phone call or a written report through a third-party independent Ethics Reporting Hotline. This hotline is accessible in both countries, Kenya and Rwanda, and allows ​for filing​​     ​ reports on different types of issues including specifically GBV and SH. Project companies maintain a log of internal grievance​s​ and the resolution status. 

Occupational Health and Safety:OHS hazards include flammability and toxicity of bioethanol, drivers’ and operators’ safety during the bioethanol transportation and works at height during the fuel loading and unloading operations. OHS risks also include warehouse safety including manual handling, slips, strips and falls, forklift operations and falling objects, as well as ergonomic issues of the staff working in the KOKO’s labs and customer support centers.  

KOKO’s HEMP describes the assessment of OHS risks related to bioethanol and how they are addressed. KOKO will update the HEMP to include warehouse safety and ergonomic hazards (ESAP Action).​ ​Project Companies developed a number of the SOPs to address the OHS risks, several policies and procedures pertinent to transportation and vehicle safety and annual fit-for-duty examination procedure, set of procedures for OHS incidents investigation and management, root cause analysis and safety violation resolution process. HSE dashboard contains information on OHS incidents, inspections, and trainings. Project Companies will update the set of OHS SOPs based on the results of HEMP update and include procedures covering warehouse safety and ergonomic hazards (ESAP action). 

Based on the findings of the site visits to warehouse facilities, testing labs as well as the bioethanol storage areas Project Companies’ employees are equipped with necessary PPE including helmets, gloves, face masks, reflective vests, and safety boots. Proper OHS signage is in place including the evacuation routes, location of fire extinguishers, restricted access areas and equipment safety info​r​mation. Bioethanol Material Safety Datasheet (MSDS) is available and clearly displayed. Lab facilities are equipped with fume hoods and ventilation fans. Project Companies will ensure that their facilities comply with the requirements of the WBG EHS General Guidelines on Hazardous Materials Management and Bioethanol MSDS by equipping facilities with secondary containment, drip trays, eyewash stations, appropriate first aid kits and spill kits (ESAP action item). 

The Company carries out appropriate health and safety training for its employees and the records of these trainings are kept in the HSE Dashboard. 

Workers Engaged by Third Parties:Contractors are primarily used for provision and operations of micro-tankers (drivers and maintenance), housekeeping, security, waste management and office catering. Based on the review of the contracts between the micro-tankers’ provider and the Project Companies, the Project Companies require contractors to have Disaster Recovery Plan, ensure the technical integrity of the vehicles, install trip recorders that would monitor traffic violations (speeding, heavy breaking etc.), ensure the proper hours of operation including the rest breaks. Contracts contain a requirement to follow HSE provisions and guidelines that are aligned with the relevant country regulations in Kenya and Rwanda and the requirements of the Project Companies E&S policies and procedures.   

The Project Companies deliver standard Agents Training and Onboarding presentation to the new agents. It includes the overview of the company, KOKO products and fuel, the benefits for the agents and the incentive structure. Project Companies will ensure that the onboarding also includes the basics of fire safety, HSE requirements in relation to KOKO products and fuel and access to grievance mechanisms (ESAP item).   

Supply Chain: KOKO Kenya developed a Supplier Code of Conduct (May 2023). It requires suppliers to comply with national laws and international standards and documents such as United Nations (UN) Global Compact, the UN Universal Declaration of Human Rights and the International Labor Organization on Fundamental Principles and Rights at Work. It specifically requires suppliers to prohibit child and forced labor, comply with the national laws with regards to compensation and working hours, prohibit discrimination and comply with applicable HSE laws and regulations. Each supplier is expected to sign KOKO’s Code of Conduct. KOKO Kenya’s Supplier Code of Conduct will be updated to include matters related to Gender Based Violence (GBV) and Sexual Harassment (SH). KOKO Rwanda will develop a Supplier Code of Conduct in line with the requirements of the PS 2 (ESAP item). 

The Project Companies’ partner, VIVO Energy, has established Health, Safety, Security, Environment and Quality (HSSEQ) Management System in line with the requirements of ISO 9001:2015 Quality Management Systems, ISO 14001:2015 Environmental Management Systems and ISO 45001:2018 Occupational Health and Safety. VIVO regularly conducts HSSEQ compliance inspections and audits. It has established a system for a systematic assessment of the HSSEQ risks and developed HSSEQ competence review and training program. VIVO’s key performance indicators (KPIs) include emissions of CO2 , employees’ and contractors’ fatalities, total recordable case frequencies and spills to the environment.  

The producer and supplier of the cookstoves, ​​Saarus, is a manufacturing facility in India that has been certified against the ISO 9001:2015 Quality Management Systems. Reportedly, Saarus implements an ESMS that includes HSE training, focused audits and hazards & risk prevention programs, as well as a regularly updated safety performance trackers.  

PS3:  Resource Efficiency and Pollution Prevention 

Resource Efficiency: National Environmental Management Authority (NEMA) in Kenya has issued a Letter of Approval (Apr 2019) for KOKO’s Ethanol Cookstoves Program of Activities that states that the Program, among other benefits, will lead to a reduction in usage of firewood and charcoal.  

As the Pes business activities primarily include cookstoves, KOKO​ ​Points and bioethanol cooking fuel storage, distribution and installation, there are no manufacturing processes and resource consumption is very limited. The main resource consumption is electricity, which is supplied from the respective national grids and used for offices, warehouses and retail shops. According to the information obtained during the E&S due diligence, the Pes operations will not exceed 25,000 tons of carbon dioxide per year of greenhouse gas emissions.  

Sanitary, cleaning, and firefighting water is sourced from groundwater and mains, while filtered bottled water is used for drinking. Sanitary and sewage water is managed by the landlords of the respective buildings and warehouse complexes. As per the ESAP, KOKO will track the utility use and record it in the HSE Dashboard. 

Pollution Prevention: Project Companies developed Ethanol Spill Management SOP (November 2017) which outlines the control measures to be implemented in the event ethanol spill from the KOKO Point, mini-tanker or any other ethanol container of less than 3500 L. Project Companies also developed Non-Conforming Ethanol Fuel Disposal Procedure (April 2019), which provides guidance on actions to take when a product is found to be contaminated either by water or other substances. 

There is an SOP for waste management (Nov 2020)​ ​which outlines handling, segregation, and disposal of waste. The procedure also identifies the different types of waste streams and types of waste.  Food waste, plastics and defective parts are collected by the NEMA-licensed waste handler for disposal. KOKO also provided e-waste disposal certificates through NEMA licensed e-waste handler Waste Electrical and Electronic Equipment Centre for disposal of its decommissioned electronic equipment. As a part of the ESMP, each project company will develop waste management plans to specify wastes generated by each company and concrete actions/measures to implement the mitigation hierarchy to properly collect, store and dispose and record these wastes (ESAP item).  

PS4:  Community Health, Safety and Security 

Community Health and Safety: The key risks posed by the Project Companies’ operations to the communities are related to transportation of bioethanol by micro-tankers on poor-quality roads particularly in rural areas, and risks to household members associated with exposure to bioethanol. To address the transportation related risks the Project Companies have developed a set of transportation and vehicle safety policies that are also enforced on contractors including the providers of micro-tankers. All vehicles are equipped with Smart Tanker Systems (STS) that allow operation control centers to remotely monitor and control access, refills, routing and distribution of the bioethanol across KOKO’s network. 

 Through its policies and procedures such as Employees Handbook the Project Companies have demonstrated a zero-tolerance to GBV and SH sexual harassment both in the workplace and outside the workplace. The policies against sexual harassment will be amended to reflect strict policy against GBV in the communities where KOKO operates. KOKO will also develop a GBV Action Plan aimed at raising awareness on GBV issues and providing info​r​mation about preventive and response measures that may be readily available in the communities (ESAP items).   

Infrastructure and Equipment Design and Safety: The canisters, cookstoves and KOKO Points are designed to ensure safe handling and minimize risks for the members of the households. To prevent the exposure to bioethanol, each canister is equipped with a non-removable non-spill nozzle and the canister can only be refilled by inserting ​it ​into the KOKO Point dock. When ​the ​canister is connected to the cookstove via the fuel hatch, the bioethanol fills in the absorbent material in the cookstove. The burning process is provided by igniting the bioethanol vapor at the specially designed lighting spot. Each cookstove is equipped with flame regulators. For KOKO cookstove equipment the Kenya Bureau of Standards (K​E​BS) has issued a Certificate of Conformity (May 2023) which was also cross verified by a third party independent international product conformity assessment company, Société Générale de Surveillance S.A. (SGS). K​E​BS has awarded KOKO Kenya with the Permit to Use the Diamon​d​ Mark of Quality (expires in Sep 2027) which signifies that KOKO Kenya has demonstrated a high degree of excellence in product manufacturing, design, and quality.  

Hazardous Materials Management and Safety: Bioethanol is a technical alcohol used for KOKO cookstoves. It is intoxicating if inhaled or ingested. According to the MSDS, it may also be mildly irritating to skin after a prolonged contact and may cause transient irritation or damage to eyes. It is highly flammable in presence of open flames and sparks of heat and slightly flammable in the presence of oxidizing materials. As described above, the exposure to bioethanol by the members of the households are minimized by the design safety features of the equipment. In addition, to prevent people from drinking bioethanol, denaturants and methyl violet dye are added to​ irreversibly​ alter the taste, smell, and appearance of the alcohol, making it unfit for consumption.  

 Through its policies and procedures such as Employees Handbook the Project Companies have demonstrated zero-tolerance to GBV and sexual harassment both in and out of the workplace. The policies against sexual harassment will be amended to reflect strict policy against GBV in the communities where KOKO operates. KOKO will also develop a GBV Action Plan aimed at raising awareness on GBV issues and providing info​r​mation about preventive and response measures that may be readily available in the communities (ESAP items).   

Security Personnel: The Project Companies have contracts with security companies who focus on access control and emergency response. One of the companies provides in-market intelligence and community liaison services for KOKO Kenya. They also work to ensure team safety in the event of security and traffic safety incidents. Project Companies will develop Security Management Plans to include: i) screening of security contractors for past involvement in crimes/ abuses related to sexual harassment and GBV; ii) training of security personnel on the Code of Conduct requirements; iii) the roles and responsibilities of security staff in grievance redress; iv) training of security personnel in human rights (including combatting GBV); v) rules of engagement and use of force, and; vi) responsibilities of Project Companies staff and resources, such as dedicated personnel to oversee the management of security at KOKO sites (ESAP item). 

PS 6: Biodiversity Conservation and Sustainable Management of Living Natural Resources 

Supply Chain: The Project Companies purchase bioethanol from a range of suppliers. This primary supply chain is considered to have a low risk of significant conversion of natural or critical habitats due to i) location in landscapes with relatively stable modified habitats of low biodiversity value and little/no evidence of habitat conversion; ii) evidence of certification that meets MIGA requirements (e.g. Bonsucro); or iii) location in jurisdictions where overall production is not increasing, suggesting additional conversion is unlikely.  

The Project Companies will develop/update its Supply Chain Policy and associated procedures to include PS 6 requirements on supply chains to (i) commit to purchasing from suppliers that are not associated with significant conversion of natural or critical habitats; (ii) periodically review supply chains with respect to risks of significant habitat conversion; (iii) limit procurement to those suppliers that can demonstrate that they are not contributing to significant conversion of natural or critical habitats (e.g. certified or verified products and/or outside areas assessed by Project Companies as high risk)  (ESAP items).