Interaction with Contractors

GRI 403-7

In 2024, KMG continued its efforts to improve contractor safety by focusing on the identification, assessment, and reduction of risks at production sites.

As part of this effort, a corporate standard for contractor interaction in the areas of industrial safety, occupational health, and environmental protection (HSE) was introduced and recommended for adoption by subsidiaries. This has established uniform safety requirements and clarified the functional responsibilities of contractors.

During the year, KMG’s Health, Safety and Environment (HSE) Department conducted audits at 18 subsidiaries, issuing 824 recommendations to improve safety. A total of 5,883 safety inspections of contractors were carried out at subsidiary facilities and branches.

In 2024, 941 contractor organizations provided services and performed work for KMG subsidiaries. Main activity areas included:

• Equipment maintenance and repair – 15.73 %;
• Transport services – 22.02 %;
• Cleaning services – 9.89 %;
• Sanitary services – 9.44 %;
• Oilfield services – 26.5 %.

An HSE Forum with contractors was held on November 1, 2024, helping to strengthen partnerships and discuss key safety topics. Core issues addressed at the forum included:

• Engagement with contractors on industrial safety, labor protection, and environmental matters
• Analysis of process management challenges
• Tools to improve the efficiency of contractor collaboration

KMG’s comprehensive approach to managing contractor safety aims to reduce risks, enhance the culture of safe work, and minimize accident rates at Company sites.

Key focus areas for working with contractors in 2025:

• Audits of subsidiaries for compliance with corporate requirements;
• Monitoring contractor compliance with industrial safety, occupational health, and environmental regulations as part of contractual obligations;
• Strengthening pre-mobilization audits of contractors;
• Advancing digitalization of contractor reporting;
• Ranking contractors based on their safety performance.