The Company is improving its corporate governance on a consistent and systematic basis.
Since 2016, to set goals and track the progress of improvements in the field of corporate governance, the Company has been using the Methodology for diagnosing corporate governance in legal entities, more than 50% of the voting shares of which are directly or indirectly owned by Samruk-Kazyna JSC, (Methodology) developed by PWC.
The development strategies of Samruk-Kazyna JSC and the Company until 2031 determine the target values of corporate governance score following the Methodology.
The Methodology involves assigning a rating based on the results of diagnostics (audit) of the Company's corporate governance by an independent party. Such diagnostics are carried out on a regular basis.
Based on the results of diagnostics and the Methodology, the Corporate Secretary of the Company develops a plan to improve corporate governance, the results of which are regularly reported to the Board of Directors of the Company.
According to the results of the independent diagnostics conducted in 2021, KMG received a corporate governance rating of "BBB". This rating means that the Company's corporate governance system complies with most of the established criteria in all significant aspects, and at the same time, there is sufficient evidence that the system is operating effectively. According to an independent consultant, this rating level is optimal for the Company's IPO.
Taking into account the recommendations of the consultant, presented with the results of the independent corporate governance diagnostic conducted in 2021 and included in the Corporate Governance Improvement Plan, the Company will devote the time until the next diagnostics to the systematic implementation of measures aimed at further improving the corporate governance system of KMG in such areas as transparency; shareholder rights; risk management, internal control and audit; the effectiveness of the activities of the Board of Directors and the executive body; sustainable development.
Under the established practice, the Corporate Secretary of KMG will regularly monitor the implementation of the Corporate Governance Improvement Plan, and reports on the implementation of this plan will be reviewed by the Audit Committee and the Board of Directors with further feedback to KMG's management.