Sustainable Development Management
Principle 1. Businesses should support and respect the protection of internationally proclaimed human rights.
Principle 2. Business should make sure that they are not complicit in human rights abuses.
Principle 4. Business should uphold the elimination of all forms of forced and compulsory labour.
Principle 6. Business should uphold the elimination of discrimination in respect of employment and occupation.
Principle 8. : Business should undertake initiatives to promote greater environmental responsibility.
Principle 10. Business should work against corruption in all its forms, including extortion and bribery.
Company Approach to Sustainable Development
NC KazMunayGas JSC recognizes its impact on the economy, the environment, and society and strives to ensure the long-term sustainability of its operations by integrating sustainable development principles into its core business processes. The Company manages sustainable development in accordance with international standards, particularly the UN Global Compact, as well as the Corporate Governance Code of Samruk-Kazyna JSC and KMG’s own Sustainable Development Concept. KMG also supports the UN Sustainable Development Goals (SDGs) and incorporates them into its strategic planning and operational activities.
KMG’s Development Strategy for 2022–2031 identifies sustainable development as one of its core strategic priorities. Within this framework, the Company is committed to engaging effectively with stakeholders, integrating ESG factors into decision-making processes, and achieving target performance indicators in the area of sustainable development.
sustainable development Management System
KMG’s sustainability management system includes the following key elements:
- Strategy, Policy, and Goals – establishing a long-term vision for sustainability and integrating sustainability principles into corporate governance and operations;
- Risk and Opportunity Management – including ESG risks in the corporate risk management system and assessing sustainability-related opportunities;
- Integration into Business Processes – embedding sustainable development principles into strategic and operational planning, investment activities, human resource management, and the supply chain;
- Stakeholder Engagement – maintaining ongoing dialogue with key stakeholders and considering their expectations and interests in decision-making;
- Reporting and Monitoring – preparing an annual sustainability report aligned with international standards and conducting independent verification of non-financial disclosures;
- Corporate Culture and Competency Development – implementing training programs, developing ESG competencies, and fostering a corporate culture based on sustainability principles.
Role of Governance Bodies in sustainable development
The Board of Directors of KMG holds strategic responsibility for sustainability management, including the approval of corporate policies and the consolidated sustainability report.
ESG-related topics and initiatives are regularly discussed at Board meetings, a dedicated annual sustainability session of the Board, and meetings of the Health, Safety, Environment and Sustainable Development Committee.
This Committee coordinates sustainability processes, establishes key performance indicators (KPIs), and monitors their implementation.
The Board also reviews and approves KMG’s sustainable development reporting.
Other roles involved in sustainable development management include:
- Management Board – ensures implementation of sustainability principles, monitors progress toward goals and KPIs, and evaluates performance on sustainable development initiatives;
- Deputy Chairman of the Management Board for Sustainable Development – coordinates the achievement of goals and KPIs, oversees implementation of corporate standards, and supervises sustainable development reporting;
- Dedicated Sustainable Development Unit – initiates, coordinates, and implements the sustainability management system, provides methodological support, and coordinates sustainable development reporting and ESG risk management;
- Relevant Business Units – execute sustainable development initiatives, participate in risk and opportunity assessments, engage with stakeholders, and contribute to reporting.
Selection and Implementation of sustainable development Initiatives
KMG develops sustainable development initiatives based on risk analysis, stakeholder expectations, and strategic business goals. The main steps for selecting and implementing initiatives include:
- Identifying material topics considering economic, environmental, and social risks and opportunities;
- Determining priority initiatives in line with stakeholder input;
- Evaluating the economic feasibility and technological viability of initiatives;
- Developing and executing implementation plans, including defining objectives, KPIs, timelines, and responsibilities;
- Monitoring and evaluating initiative effectiveness, including adjustments to strategies and activities as needed.
Measuring sustainable development Performance
KMG regularly monitors and assesses the effectiveness of its sustainability initiatives using key performance indicators (KPIs), which cover economic, environmental, and social dimensions. These KPIs are developed in alignment with the Company’s strategic goals.
Monitoring and Improving the sustainable development Management System
KMG performs regular analysis of its sustainable development management system, including:
- Monitoring the achievement of target indicators;
- Conducting management reviews;
- Performing internal and external audits of sustainability reporting;
- Assessing the maturity level of the sustainable development management system;
- Identifying areas for improvement and developing corrective actions.
The results of this analysis are used to refine strategic priorities, enhance the sustainability management system, and develop new initiatives.