Materiality Assessment

GRI 3-1GRI 3-2

Approach to Determining Material Topics

The identification of material topics is a key stage in the preparation of the  Sustainable Development Report of NC KazMunayGas JSC and is carried out in accordance with the requirements of the GRI Standards (including the sector-specific standard GRI 11: Oil and Gas Sector 2021). This process enables the Company to identify and disclose topics that have the greatest impact on its activities, stakeholders, and sustainable development as a whole.

Stages of the Materiality Assessment Process

1. Topic Identification

The first stage involves analyzing internal and external factors affecting KMG, including:

• Regulatory requirements and international standards;
• The Company’s development strategy;
• Stakeholder expectations and demands;
• Industry trends and best practices;
• ESG risk and opportunity analysis.

2. Assessment of Topic Significance

Identified topics are assessed from two perspectives:

• Impact on the economy, environment, and society – the scale and nature of KMG’s impact on sustainable development is considered;
• Relevance to stakeholders – priority issues for shareholders, partners, employees, local communities, and other stakeholder groups are analyzed.

This assessment is conducted through stakeholder surveys.

3. Topic Prioritization

Based on the evaluation, a materiality matrix is developed, ranking topics according to their level of importance. The most material topics are included in the report and serve as a basis for further strategic actions by the Company.

4. Verification and Approval

The results of the analysis are discussed with KMG’s management to ensure the completeness and accuracy of topic selection. Members of the HSE and Sustainable Development Committee are informed about the material topics to be disclosed in the Sustainability Report.

Regular Review

The materiality assessment process is dynamic and subject to regular review. This allows KMG to reflect changes in the external environment, Company strategy, and stakeholder expectations. It ensures the relevance of information and reinforces transparent engagement with society.

Thus, KMG’s approach to materiality assessment aligns with leading international practices and enhances the quality of reporting, strengthening stakeholder trust and contributing to the Company’s long-term sustainability.

Material Topics

The 2024 Sustainability Report includes 12 material topics, consistent with those disclosed in the previous report.