About the Report

JSC NC “KazMunayGas” (hereinafter, KMG) has been reporting on its sustainable development activities annually since 2008, and since 2012 it has been publishing reports in accordance with the Global Reporting Initiative (GRI).

In order to demonstrate its clear and transparent operations to its stakeholders, KMG discloses its approach to sustainable development, social, economic and environmental responsibility on an annual basis.

This Report has been prepared in accordance with Global Reporting Initiative Sustainability Reporting Standards: Core option, as well as GRI G4 Oil and Gas Sector Disclosures.

The Report provides consolidated data about KMG, its subsidiaries and dependent entities for calendar year 2021 (hereinafter referred to as KMG, the Company, the Group)1.

The Report covers KMG’s subsidiaries and dependent entities with fifty or more percent of voting shares (participation interests) directly or indirectly owned or held in trust by KMG, as well as the legal entities which activities KMG is entitled to control (the detailed description of reporting scope broken down by sections is given in Appendix 1 to the Report).

The Company’s financial standing and production performance are presented using the Company’s consolidated data with the organisational support of the relevant Company’s Units. This Report has been developed using the KMG’s managerial and audited financial statements prepared in accordance with the International Financial Reporting Standards.

Read more about the process of preparing the Report, identifying material topics and engaging with stakeholders in the Sustainable Development Management section.

In order to enable collation and comparability of data by indicators, the information is presented over time for several years.

ОThe KMG Sustainability Report is approved by decision of KMG’s Board of Directors and communicated to the stakeholders by means of publication on the corporate website and distribution of the paper copy. .

KMG Sustainability Reports are available electronically in the state, Russian and English languages at: https://www.kmg.kz/eng/ustoichivoe_razvitie/reports/

The online version of the Report is available on KMG website in the state, Russian and English languages at https://www.kmg.kz/eng/ustoichivoe_razvitie/reports/

Guided by international sustainable development initiatives, KMG adheres to the principles of the UN Global Compact (hereinafter, UNGC) and integrates the Sustainable Development Goals (SDGs) into its operations.

11 Clause 3.6. of the Trust Management Agreement for 100% of ordinary shares of JSC “KazTransGas” (hereinafter, KTG) dated 11.03.2021 between KMG and Samruk- Kazyna JSC specifies a list of issues where the Trustee is obliged to agree with KMG the implementation of certain rights and obligations. This list did not include the issues of decision-making on labour and environment protection, management of human resources and social responsibility, and procurement activities. Also, in accordance with KMG BoD Resolution No. 14/2021 dated 09.09.21 (item 18), KTG was divested to the Fund in November 2021, and the asset has not been included in KMG’s consolidation since then. Therefore, information in the Report on these sections is presented for KMG Group excluding KTG and information on this asset is presented separately

UN GLOBAL COMPACT PRINCIPLES

HUMAN RIGHTS

Principle 1

Businesses should support and respect the protection of internationally proclaimed human rights.

Principle 2

Businesses should not be complicit in human rights abuses.

LABOUR

Principle 3

Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining.

Principle 4

Businesses should eliminate all forms of forced and compulsory labour

Principle 5

Businesses should uphold the effective abolition of child labour.

Principle 6

Businesses should uphold the elimination of discrimination in respect of employment and occupation.

ENVIRONMENT

Principle 7

Businesses should support a precautionary approach to environmental challenges.

Principle 8

Businesses should undertake initiatives to promote greater environmental responsibility.

Principle 9

Businesses should encourage the development and diffusion of environmentally friendly technologies

ANTI-CORRUPTION

Principle 10

Businesses should work against corruption in all its forms, including extortion and bribery.

Since 2006, KMG is a member and active participant of UNGC and is committed to UNGC Ten Principles and 17 SDGs.

The Company’s Annual Sustainability Report is our progress message under the UN Global Compact and is available at https://www.unglobalcompact.org/what-is-gc/participants/6810