About the Company’s Contribution to Achieving SDGs

Based on KMG’s strategic goals, the Company has identified 6 UN Sustainable Development Goals and 14 objectives as priorities. The goals and objectives align with strategic and business initiatives implemented in KMG.

Their implementation determines the Company’s contribution to achievement of the UN’s global Sustainable Development Goals https://www.kmg.kz/eng/ustoichivoe_razvitie/nash_podhod/

IMPLEMENTATION OF SUSTAINABLE DEVELOPMENT GOALS IN KMG

Sustainable Development Goals

Priority Objectives

KMG’s Contribution

Ensure healthy lifestyle and promote well-being for all at all ages

3.6. Halve the global number of deaths and injuries from road traffic accidents by 2020

Travel Management Project

In order to improve transport safety, create a culture of safe driving and a unified centralised digital platform, a Travel Management Project was piloted at Embamunaygas JSC, which is to be replicated at other subsidiaries and associated companies of KMG in 2022.

Result

418 vehicles of Embamunaygas JSC are monitored via GPS terminals for speeding, driver seatbelt use, headlight use, sudden acceleration and braking.

3.8. Ensure universal healthcare coverage, including financial risk protection, access to high-quality essential health services and access to safe, effective, high-quality and affordable essential medicines and vaccines for all

Personnel health management

KMG will establish a Personnel Health Management Programme to take care of the health and quality of life of employees, focusing on three main areas:

Dealing with the pandemic and its aftermath.

Preventing occupational diseases.

Raising employee awareness and motivation for a healthy lifestyle

10 Steps to Rehabilitation Initiative

The programme is primarily aimed at increasing the physical activity and eliminating the unhealthy eating habits.

Result

100% of KMG’s employees are covered by the Health Insurance Programme and vaccination opportunities.

3.9. Significantly reduce the number of deaths and illnesses caused by exposure to hazardous chemicals and air, water and soil pollution and poisoning by 2030

A Code of Leadership and Employee Commitment to Health, Safety and Environment (HSE) Compliance is implemented and enforced.

The Korgau Map aims to identify and report unsafe condition/unsafe behaviour/unsafe action/hazard.

Result

No deaths or illnesses due to exposure to hazardous chemicals and air, water and soil pollution and poisoning were reported in 2021.

For more information, see the Occupational Health and Safety section.

Provide access to affordable, reliable, sustainable and modern energy for all

7.1. Provide access to affordable, reliable and modern energy supply for all by 2030

The main strategic areas of energy saving and energy efficiency development in the Group are upgrading of process equipment, introducing energy saving technologies, optimising heating energy generation and consumption as well as developing own generation sources, including those using RES.

A Low Carbon Development Programme until 2031 has been approved

7.b. By 2030, expand the infrastructure and upgrade the technologies for modern and sustainable energy supply to all in developing countries, particularly in the least developed countries, small island developing states and landlocked developing countries, taking into account their respective support programmes

Development of RES projects:

MW-class RES projects;

RES projects for use in the public utility sector;

RES projects integrated into the process cycle;

Purchase of green energy.

Result

2031:

100% coverage of SDEs by energy management services

Reduction of energy intensity by 10% versus 2019

15% share of RES in KMG’s electricity mix

For more information, see the Low Carbon Development Programme section.

Promote steady, comprehensive and sustainable economic growth, full and productive employment and decent work for all

8.5. By 2030, ensure full and productive employment and decent work for all women and men, including young people and persons with disabilities, and equal pay for work of equal value

Project of a Multifunctional Shared Service Centre for JSC NC “KazMunayGas” Group

Aims to improve productivity (cost reduction, customer satisfaction (quality, time), transparency, manageability, reliable data analytics) across KMG Group by moving common support processes out of individual KMG Group companies and into a single service centre for execution.

KMG’s business disposes of routine and duplicate functions and focuses on core processes with high added value.

Result

2024: functions of 26 KMG companies transferred to SSC

8.6. By 2020, substantially reduce the share of young people who are not working, studying or acquiring vocational skills

8.8. Protect labour rights and promote safe and secure working conditions for all workers, including migrant workers, especially migrant women, and those without secure employment

Zhas Orken

KMG Group has a Zhas Orken young specialists rotation programme in place. The aim of Zhas Orken Programme is developing talented young people in Kazakhstan.

Result

During the programme implementation, 61 young specialists were rotated under the Zhas Orken Programme in KMG Group, 15 of whom were employed; 18 young specialists, including current students, passed the Digital Summer Programme; 3 programme graduates were employed.

Standard Social Assistance Regulations

Standard Social Assistance Regulations

Social assistance to employees of KMG’s SDEs is defined in their collective agreements and social assistance regulations. Standard Social Assistance Regulations for Employees of KMG SDEs were adopted in order to unify the types and standards of social assistance across all KMG companies.

For more information, see the Personnel Development section.

Building resilient infrastructure, promote comprehensive and sustainable industrialisation and innovation

9.1. Develop high-quality, reliable, sustainable and resilient infrastructure, including regional and cross-border infrastructure, to support economic development and human wellbeing, with a focus on affordable and equal access for all

KMG’s Digital Transformation Programme enhances scientific research and improves the technological capabilities of industrial sectors. KMG invests heavily in scientific research and build-up of local potential in this area. The development of domestic technological capacities for industrial diversification will also have a positive impact on the country’s climate.

ABAI Information System Development Project

It involves centralising all KMG Group production information in a single database on a Big Data platform, as well as processing and analysing it using artificial intelligence and machine learning.

ABAI Information System is 20 autonomous modules, each aimed at solving specific industrial problems.

Result

Five pilot ABAI modules have been developed and tested:

ABAI Database;

Visualisation Centre;

Complication Monitoring;

Process Mode;

Downhole Pumping Equipment Selection.

For more information, see the Digitalisation and Transformation section.

9.4. By 2030, upgrade infrastructure and revamp industrial facilities to make them sustainable through improved resource use efficiency and increased use of clean and environmentally safe technologies and industrial processes, involving all countries according to their individual capacities

A Low Carbon Development Programme until 2031 has been approved

Result

2031:

100% coverage of SDEs by energy management services;

Reduction of energy intensity by 10% versus 2019

For more information, see the Low Carbon Development Programme section.

Taking urgent action to combat climate change and its impacts

13.2. Integrate responses to climate change into policies, strategies and planning at national level

Low-Carbon Development

A Low-Carbon Development Project office has been established.

A Centre of Competence for hydrogen energy and CO2 capture, storage and recycling is being considered.

Green Office

The corporate green initiative is actively pursued and green office principles, such as the introduction of separate waste collection, water and energy saving in office premises, etc., are being implemented in stages.

Result

By 2031:

GHG emissions down by 15 % versus 2019;

Carbon intensity down by 10% versus 2019;

Zero routine flaring of raw gas.

13.3. Improve awareness, information dissemination and the capacity of people and institutions to mitigate, adapt to and prevent climate change

Emission Management Policy

The Company has approved an Emission Management Policy consisting of eight key principles, of which six directly concern climate change, and aimed at complete cessation of routine flaring.

CDP

The Company calculates its carbon footprint and posts the Climate Questionnaire on the CDP platform (formerly the Carbon Disclosure Project).

Task Force on Climate-related Financial Disclosures (TCFD)

Climate-related risk disclosure in accordance with recommendations of Task Force on Climate-Related Financial Disclosures (TCFD).

Result

The Company’s Environmental Policy has been approved

KMG is assigned a CDP climate rating of ‘C’.

For more information see Occupational Health and Safety and Environment.

Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss

15.3. By 2030, combat desertification, restore degraded lands and soils, including those affected by desertification, drought and floods, and strive to ensure that land conditions do not deteriorate globally

KMG implements projects and actions aimed at reducing pollutant discharges and water withdrawal from natural sources:

CDP

The Company calculates the water footprint and posts a water security questionnaire on the CDP platform.

TAZALYQ

Atyrau Refinery is actively implementing TAZALYQ, a large-scale environmental project, to improve the environment of Atyrau.

Desalination Plants Construction

The desalination plant is a unique project in addressing the issue of water supply in Mangystau Region. The plant will release at least 6.2 mln m3 of Volga water per year for development of the region.

A desalination plant near the Kenderli recreation area in Mangystau Region. The expected capacity will be 50 thous. m3 of water per day.

Land Restoration

The Company is working on recovery of historic oil waste and clean-up of oil-contaminated lands.

Result

TAZALYQ: water withdrawal from the Ural River down by 10%, 15% reuse of treated refinery effluents

2024: Complete disposal of historic oil waste, clean-up and remediation of oil-contaminated territories of the Company

15.5. Take immediate and meaningful actions to halt the degradation of natural habitats, halt biodiversity loss and ensure conservation and prevention of loss of endangered species by 2020

Forest Climate Projects

KMG’s Low Carbon Development Programme until 2031 includes forest climate projects that will have a beneficial effect on conservation of terrestrial ecosystems.

Embamunaygas JSC and Atyrau Refinery LLP started landscaping.

Hierarchy of biodiversity impact mitigation measures

The Company applies a hierarchy of biodiversity impact mitigation measures when planning and implementing its operations based on four key actions: prevention, minimisation, restoration and compensation of potential significant direct impacts.

Result

2031: implementation of forest climate projects on an area of 2,000 ha.