Compliance with Legislation and Environmental Expenditures

Environmental Protection Expenditures

The Company’s environmental expenditures include:

• Payment of taxes for permitted emissions,
• Costs of environmental protection measures,
• Environmental risk insurance,
• Compensation measures in the field of environmental protection,
• Investments in the prevention of environmental impacts.

In particular, investments in oil waste recycling have tripled since 2015.

In 2024, environmental protection expenditures amounted to KZT 45.4 billion. The main areas of funding included:

• Waste recovery (preparation for reuse, recycling, disposal) and elimination of historical contamination;
• Remediation of oil-contaminated sites;
• Implementation of production monitoring, including in marine areas;
• Modernization of treatment facilities to reduce emissions and discharges of pollutants;
• Repair of treatment facility infrastructure;
• Technical and organizational measures to reduce emissions, including replacement and installation of burners, filters, use of catalysts, and other technological solutions.

Compliance with Environmental Legislation

GRI 2-27

The Company systematically monitors compliance with environmental legislation of the Republic of Kazakhstan at its production facilities. As part of this work, potential non-conformities are identified, problem areas are analyzed, and environmental risks are managed, allowing timely preventive measures to be taken.

In 2024, fines in the amount of KZT 33,203.2 million were imposed, of which KZT 196 million has been paid. At the same time, one of KMG’s subsidiaries was issued a fine of KZT 32.3 billion, which is currently being contested in court.

The Company continues its efforts to ensure full compliance with environmental requirements, minimize environmental risks, and implement the best available techniques to reduce environmental impact.