Environmental Impact Management

Management Approaches

Environmental responsibility is one of the Company’s key priorities. A comprehensive set of measures is being implemented to enhance environmental safety and reduce environmental impacts.

KMG’s environmental policy is integrated into its Development Strategy through 2031. Within the framework of its environmental strategic initiatives, the Company is focused on achieving a “zero impact” approach–preventing negative environmental impacts. The implementation of effective internal standards and technological solutions, promotion of environmental awareness, and continuous improvement of the management system contribute to significant progress in this area.

Key areas of activity include:

• Management of air pollutant emissions;
• Reduction of raw gas flaring;
• Water resource management;
• Waste management and land reclamation;
• Biodiversity conservation.

KMG and its subsidiaries follow a zero-tolerance principle regarding environmental pollution. In its operations, the Company is guided by the Environmental Code of the Republic of Kazakhstan and its internal Environmental Policy, ensuring the collection, analysis, and dissemination of environmental information.

Transition to Best Available Techniques (BAT)

In line with the requirements of Kazakhstan’s new environmental legislation, KMG is actively involved in the reform to transition to Best Available Techniques (BAT). As part of this initiative, BAT reference documents for oil and gas extraction and processing have been developed, and enterprises included in the list of the 50 largest polluters have begun the process of obtaining Integrated Environmental Permits (IEPs). The following KMG Group companies are on the list: Atyrau Refinery, Pavlodar Refinery, PKOP, and KOA.

Environmental Dialogue and Engagement

KMG actively participates in industry initiatives and engages in dialogue with government authorities and the expert community. On November 9, 2024, a roundtable was held in Atyrau on environmental regulation in the oil and gas sector with the participation of the Ministry of Ecology and Natural Resources of Kazakhstan, the KAZENERGY Association, and oil and gas companies. Key topics included obtaining IEPs, implementing Automated Monitoring Systems (AMS), and improving environmental legislation.

As part of the dialogue, representatives of the Ministry of Ecology and Natural Resources and the KAZENERGY Association visited the facilities of Atyrau Oil Refinery LLP and Kazakhstan Petrochemical Industries Inc. (KPI) to familiarize themselves with their environmental programs, monitoring systems, and treatment facilities.

Automated Environmental Monitoring Information System (AEMIS)

KMG is implementing an AEMIS aimed at creating a unified information space in the field of environmental protection.

The main goal of the project is to increase transparency in environmental monitoring, minimize human error, and ensure real-time control over compliance with environmental standards, thereby reducing the risk of fines and sanctions.

Key AEMIS functions include:

• Automation of reporting to government authorities;
• Maintenance of a database of permitting documents and emission fee calculations;
• Real-time response to potential exceedances of regulatory thresholds and adjustment of technological processes;
• Environmental status monitoring based on data from industrial environmental control;
• Generation of corporate reports through integration with the HSE KMG system.

The implementation of AEMIS will improve the efficiency of environmental management across KMG’s operations and strengthen compliance with environmental protection requirements.

Key Environmental Performance Indicators