SUSTAINABLE DEVELOPMENT REPORT
OF NC KAZMUNAYGAS JSC FOR 2024
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NC KazMunayGas JSC strives to contribute to sustainable development by integrating the core principles of the United Nations, global trends, Kazakhstan’s development priorities, and universal values into its business strategy. The Company adheres to all 17 UN Sustainable Development Goals and actively supports their implementation.

Taking into account strategic priorities and key objectives, KMG focuses on contributing to 10 priority SDGs and 24 relevant targets. These goals are pursued through strategic initiatives aimed at enhancing operational efficiency, improving working conditions, creating opportunities for employees, supporting local communities, protecting the environment, and fostering innovation.

Engagement with stakeholders and adherence to international standards enable the Company to consistently move toward a sustainable future.

Targets

KMG’s Contribution

Good Health and Well-being


3.6 Reduce the number of deaths and injuries from road traffic accidents.

3.8 Achieve universal health coverage, including access to quality essential health-care services and access to safe, effective, quality, and affordable essential medicines and vaccines.

3.9 Substantially reduce the number of deaths and illnesses from hazardous chemicals and air, water, and soil pollution and contamination.

Priority

Ensure healthy lives and promote well-being for all at all ages.

2024 Results:

  • Transport management diagnostics were carried out in 7 KMG subsidiaries, and roadmaps for scaling the “Trip Management” project were approved;
  • 3837 KMG subsidiary employees and 2106 contractor employees completed the “Defensive Driving” training course.
  • 18,265 employees of KMG subsidiaries and 1,490 employees of contracting organizations participated in a practical demonstration of the use of seat belts;
  • 100 % of KMG employees were covered by a medical insurance program.

Key Initiatives:

  • “Trip Management” Project – implementation of a transport management system with a focus on traffic safety;
  • Employee Wellness Program (2024–2028) – health monitoring for employees with chronic conditions, preventive measures, innovative pre-shift health screenings, improved accessibility and quality of medical care;
  • Medical Insurance – regular medical checkups and employee vaccinations;
  • Leadership and Employee Commitment Code – promoting adherence to industrial safety requirements;
  • “Qorgau” Safety Card – identification and prevention of unsafe working conditions.

Gender Equality

5.1 Eliminate all forms of discrimination against all women and girls everywhere.

5.5 Ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision-making in political, economic, and public life.

Priority

Ensuring gender equality and empowering all women and girls.

Results in 2024:

  • Recruitment procedures are free from discrimination;
  • Women’s representation on the KMG Board of Directors and Supervisory Boards reached 13 % in 2024 (target: 30 % by 2030).

Key initiatives:

  • Increase the share of women in top management positions across KMG Group to 30 % by 2030;
  • Implementation of the Women’s Empowerment Principles (WEPs), including a gender gap self-assessment and public disclosure of gender composition data;
  • Strict adherence to the labor legislation of Kazakhstan to prevent any form of discrimination.

Affordable and Clean Energy

7.1 Ensure access to affordable, reliable, and modern energy services for all.

7.b Expand infrastructure and upgrade technology for supplying modern and sustainable energy services

Priority

  • Improving production energy efficiency;
  • Increasing the share of clean energy.

Results in 2024:

  • 70 energy-saving initiatives implemented, resulting in savings of 2.36 million GJ (81.6 thousand toe) of fuel and energy resources – equivalent to a reduction of 
  • 174.9 thousand tonnes of CO2 emissions;
  • Energy audits conducted for technological equipment;
  • 20,000 I-REC green certificates purchased in 2023–2024;
  • KMG Group approved its Energy Policy and Regulations on Energy Saving and Efficiency Management.

Key Initiatives:

  • Enhancing energy efficiency through equipment modernization and the implementation of automated metering systems;
  • Development of renewable energy sources: 1 GW wind power project with Total Eren and a 247 MW hybrid power plant with Eni;
  • Purchasing green electricity (target: 15 % of total consumption by 2031);
  • Development of sustainable aviation fuel (SAF) based on ethanol.

Decent Work and Economic Growth

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

8.6 Substantially reduce the proportion of youth not in employment, education, or training.

8.8 Protect labor rights and promote safe and secure working environments for all workers.

Priority

Promoting sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all.

2024 Results:

  • KMG provides employment to over 49,000 people;
  • The Company is implementing youth development programs such as Zhas Maman, Dual Education, Intern, and KMGE School.

Key Initiatives:

  • Youth engagement programs, graduate training and employment, preparation of specialized professionals, and internship opportunities;
  • Social support for employees through collective agreements (50+ types of benefits).

Industry, Innovation and Infrastructure

9.1 Develop quality, reliable, sustainable and resilient infrastructure, including regional and transborder infrastructure, to support economic development and human well-being, with a focus on affordable and equitable access for all.

9.4 By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes.

Priority

Development of sustainable infrastructure, promotion of inclusive and sustainable industrialization and innovation.

Results in 2024:

  • Six ABAI information system modules were implemented to improve data and production process management;
  • Implemented solutions resulted in additional oil production and a reduction in the number of well workovers;
  • A “Digital Citizen” training course was developed.

Key initiatives:

  • Development and implementation of the ABAI information system to centralize all production data of the KMG group and process it using artificial intelligence and machine learning;
  • “Digital Citizen” program to enhance employees’ digital literacy;
  • Optimization of energy consumption and modernization of technological equipment.

Sustainable Cities and Communities

11.2 Ensure access to safe, affordable, accessible and sustainable transport systems for all, improving road safety, notably by expanding public transport, with special attention to the needs of those in vulnerable situations, including women, children, persons with disabilities and older persons.

11.6 Reduce the adverse per capita environmental impact of cities, including by paying special attention to air quality and municipal and other waste management.

Priority

Ensure inclusive, safe, resilient, and sustainable cities and human settlements

2024 Results:

  • Participation in the “Taza Kazakhstan” environmental campaign:
    • 75 clean-up and improvement events held;
    • 235 community clean-ups with over 10,000 participants, collecting 240 tonnes of waste;
    • 60 events for whitewashing green plantings–around 170,000 trees.
  • Installation of automated pollutant emission monitoring systems;
  • Since 2021, approximately 200,000 trees have been planted across the KMG Group, including more than 97,000 in 2024.

Key Initiatives:

  • Development of charging infrastructure for electric vehicles;
  • Implementation of Best Available Techniques (BAT) to reduce environmental impacts step-by-step;
  • Development of a pollutant emission reduction program;
  • Implementation of the World Bank’s “Zero Routine Flaring by 2030” Initiative;
  • Creation of a “green belt” through landscaping and tree planting projects;
  • Participation in the “Taza Kazakhstan” initiative to improve environmental conditions..

Responsible Consumption and Production

12.4 Achieve environmentally sound management of chemicals and all wastes throughout their life cycle in accordance with agreed international frameworks and significantly reduce their release into the air, water, and soil to minimize their adverse impacts on human health and the environment.

12.5 By 2030, substantially reduce waste generation through prevention, reduction, recycling, and reuse.

12.6 Encourage companies, especially large and transnational companies, to adopt sustainable practices and integrate sustainability information into their reporting cycle.

Priority

Facilitating the transition to responsible consumption and production models.

2024 Results:

  • 4.5 million tonnes of historical oil waste recycled from 2018 to 2024;
  • Ongoing implementation of water resource management measures.

Key Initiatives:

  • Historical oil waste disposal program;
  • “Tazalyk” project at Atyrau Refinery for wastewater treatment;
  • Implementation of a waste management standard;
  • Water resource management program;
  • Development of “green” offices and separate waste collection systems.

Climate Action

13.2 Integrate climate change measures into national policies, strategies, and planning.

13.3 Improve education, awareness-raising, and human and institutional capacity on climate change mitigation, adaptation, impact reduction, and early warning.

Priority:

Take urgent action to combat climate change and its impacts.

2024 Results:

  • KMG’s Low-Carbon Development Program through 2060 was approved;
  • Corporate methodology for GHG emissions monitoring and reporting was updated to include Scope 1, 2, and 3 emissions and approaches to inventorying, accounting, and disclosure;
  • A Hydrogen Atlas was developed; a green hydrogen pilot project is underway, and lab samples of iron and titanium alloys for hydrogen storage were obtained;
  • A feasibility study on SAF (Sustainable Aviation Fuel) production in Kazakhstan was completed with Air Astana and EBRD support;
  • Sites in Pavlodar Region were identified for a forest-climate project, including a carbon sequestration assessment and working plan for green space development;
  • First methane emissions report submitted to UNEP under OGMP 2.0 initiative;
  • KMG specialists trained in methane leak management; field measurements conducted at two subsidiaries;
  • Instruction for methane emissions management across the KMG Group was adopted;
  • At COP28, KMG joined the Oil and Gas Decarbonization Charter.

Key Initiatives:

  • Implementation of internal carbon pricing;
  • Participation in the Carbon Disclosure Project and disclosure of climate risks
  • per TCFD;
  • Methane emissions management in cooperation with Carbon Limits, IFC, and 
  • Tetra Tech Inc;
  • Participant in UNEP OGMP 2.0 methane initiative;
  • Signatory to the Oil and Gas; Decarbonization Charter;
  • Forest-climate offset project in partnership with Chevron in Pavlodar Region.

Life on Land

15.3 Combat desertification, restore degraded land and soil, including land affected by desertification, drought, and floods, and strive to achieve a land degradation-neutral world.

15.5 Take urgent and significant action to reduce the degradation of natural habitats, halt the loss of biodiversity, and ensure the conservation and protection of threatened species.

Priority:

Protection and restoration of terrestrial ecosystems, promotion of their sustainable use, sustainable forest management, combating desertification, halting and reversing land degradation, and halting biodiversity loss.

2024 Results:

  • 4.5 million saxaul seedlings planted across 15,000 hectares on the dried seabed of the Aral Sea;
  • Implementation of a project to reconstruct wastewater channels and reclaim evaporation fields at the Atyrau Refinery;
  • Ongoing efforts to restore contaminated lands and reduce pollutant discharges.

Key Initiatives:

  • Construction of a desalination plant in Kenderli with a capacity of 50,000 m³ of water per day;
  • Land rehabilitation initiatives;
  • Development of a biodiversity conservation program and cooperation with environmental organizations;
  • Implementation of the mitigation hierarchy: avoidance, minimization, restoration, and offsetting of environmental impacts;
  • Execution of the “Tazalyk” environmental project aimed at improving environmental conditions.

Partnerships for the Goals

17.1 Strengthen domestic resource mobilization, including through international support to developing countries, to improve domestic capacity for tax and other revenue collection.

17.16 Enhance the Global Partnership for Sustainable Development, complemented by multi-stakeholder partnerships that mobilize and share knowledge, expertise, technology, and financial resources to support the achievement of the Sustainable Development Goals in all countries, particularly developing countries.

17.17 Encourage and promote effective public, public-private, and civil society partnerships, building on the experience and resourcing strategies of partnerships.

Priority:

Enhancing engagement within the Global Partnership for Sustainable Development.

2024 Results:

  • KMG annually discloses information on taxes and government payments, adhering to leading transparency standards;
  • The Company actively collaborates with international agencies and intergovernmental organizations in implementing sustainable development projects.

Key Initiatives:

  • Disclosure of tax reports in line with GRI standards and the OECD Action 13 Country-by-Country initiative;
  • Participation in international initiatives on sustainable development, environmental protection, and emissions reduction;
  • Strengthening transparency in corporate governance.