Stakeholder Engagement
Approach to Stakeholder Engagement
NC KazMunayGas JSC views effective engagement with stakeholders as one of the key components of its sustainable development efforts. The Company recognizes the importance of dialogue with government representatives, investors, employees, partners, local communities, and other stakeholders, as their involvement and support contribute to the achievement of KMG’s strategic goals. Stakeholder engagement is carried out in accordance with international standards, including the AA1000 Stakeholder Engagement Standard (2015) and the GRI Standards, as well as KMG’s internal regulations, such as the Stakeholder Map of KMG.
Principles of Engagement
KMG adheres to the following key principles when engaging with stakeholders:
- Respect and consideration of interests – The Company takes into account the opinions, expectations, and preferences of stakeholders in decision-making;
- Openness and transparency – KMG regularly discloses information about its activities, plans, and sustainability initiatives;
- Accountability and commitment – The Company strives to fully meet its commitments to stakeholders;
- Engagement and dialogue – KMG maintains open communication with key stakeholders, ensuring their participation in the discussion of significant issues;
- Adaptability and continuous improvement – Stakeholder engagement is treated as a cyclical process involving regular evaluation and adjustment.
Stages of Stakeholder Engagement
The stakeholder engagement process at KMG includes five main stages:
- Identification of stakeholders and material issues
- Developing and regularly updating the KMG Stakeholder Map, which includes a list of stakeholders, interaction methods, and engagement formats;
- Assessing stakeholders’ contributions to the Company’s activities and understanding their key expectations.
- Classification and prioritization of stakeholders
- Evaluating stakeholder influence and significance to the Company;
- Identifying priority stakeholder groups for deeper dialogue.
- Planning engagement
- Designing engagement activities at various levels (consultation, negotiation, collaboration, integration into decision-making);
- Determining engagement frequency and methods (meetings, surveys, public consultations, partnership initiatives, etc.).
- Implementation of activities
- Carrying out planned activities and initiatives focused on stakeholder engagement;
- Maintaining continuous dialogue and information exchange.
- Evaluating and improving engagement
- Analyzing the effectiveness of activities, capturing lessons learned, and adjusting approaches;
- Developing two-way feedback mechanisms and incorporating stakeholder input into the Company’s future strategies.
KMG regularly assesses the effectiveness of its stakeholder engagement and improves the process in line with international best practices and evolving public expectations.
Results of Stakeholder Engagement
KMG actively engages with its stakeholders, aiming to reflect their expectations and ensure constructive dialogue. In 2024, the Company continued implementing its sustainable development strategy, introducing advanced corporate governance practices, enhancing environmental responsibility, and strengthening social partnerships.
Shareholders
Communication Methods: publication of reports, disclosure of information on the corporate website, shareholder meetings, reporting via the Kazakhstan Stock Exchange.
Interests and Expectations: financial stability, adherence to corporate governance principles, return on investment, improved operational performance, integration of sustainability principles.
What We Do
The Company consistently improves its operational and financial performance, ensuring stability and value growth for shareholders. In 2024, KMG successfully implemented strategic initiatives aimed at modernizing production facilities and enhancing operational efficiency.
A key milestone was the development of a new Low-Carbon Development Program through 2060, aimed at reducing environmental impact and supporting the sustainable transformation of the business.
In addition, the Company remains committed to high standards of corporate governance, ensuring transparency in reporting and the protection of shareholder rights.
Investors
Communication Methods: Roadshows, financial reporting, engagement with analysts, press releases.
Interests and Expectations: ESG practices, transparent risk management, return on investment, integration of leading ESG reporting standards.
What We Do
The Company aims to maintain open and transparent dialogue with investors by providing timely updates on its strategic initiatives and outlook. A key focus is the development of ESG reporting in line with international standards, including GRI Standards, TCFD, and the OGMP 2.0 initiative, enabling investors to better assess KMG’s environmental, social, and governance impacts.
In 2024, KMG continued implementing low-carbon development and energy efficiency projects, attracting the attention of sustainability-focused investors and international rating agencies.
Government Authorities
Communication Methods: Consultations, participation in working groups, reporting, official meetings.
Interests and Expectations: Compliance with legislation, tax payments, fulfillment of social obligations.
What We Do
The Company strictly complies with all legal requirements and actively participates in the development of regulations governing the oil and gas sector and sustainable development. KMG responsibly pays taxes and other mandatory contributions to the state budget. The Company continues to invest in projects aimed at regional development, improvement of social infrastructure, and environmental protection, thereby contributing to long-term economic growth.
Employees and Trade Unions
Communication Methods: Management meetings with teams, trainings, internal communication channels.
Interests and Expectations: Occupational safety, career development, fair wages, improved working conditions.
What We Do
The Company places great emphasis on creating safe and comfortable working conditions for its employees. In 2024, additional measures were taken to modernize workplaces and implement health protection programs. KMG creates new opportunities for staff through training and skills development. Fair compensation, transparent hiring processes, and a clear professional growth system help attract and retain top talent in the industry. To strengthen corporate culture and employee engagement, KMG actively develops internal communication channels and maintains ongoing dialogue with trade unions.
Local Communities and the Public
Communication Methods: Public hearings, charitable programs, feedback via hotlines.
Interests and Expectations: Job creation, social investment, environmental responsibility.
What We Do
The Company acknowledges its responsibility to society and actively contributes to improving the quality of life in the regions where it operates. In 2024, KMG continued to allocate significant resources to support education, healthcare, and social well-being of local communities. Special attention is given to environmental initiatives, including emissions reduction, water resource management, and land restoration. Corporate social responsibility programs help develop local infrastructure and create favorable living conditions for the population.
Clients and Partners
Communication Methods: Business meetings, contracts, joint projects.
Interests and Expectations: Stable supply, product and service quality, procurement transparency.
What We Do
The Company ensures uninterrupted supply of petroleum products and services while maintaining high standards of quality and reliability. It continues to optimize logistics and supply chain management. An open approach to partner engagement, adherence to corporate governance best practices, and commitment to fair competition help build trust and long-term relationships with clients.
Contractors
Communication Methods: Tenders, conferences, working meetings.
Interests and Expectations: Procurement transparency, fair collaboration terms, safety at worksites
What We Do
The Company strives for transparency and efficiency in procurement by implementing automated supplier selection systems. Efforts continue to strengthen safety measures for contractors at worksites, including training on industrial safety and occupational health standards. Developing partnerships based on mutual trust enhances service quality and reduces operational risks.
KMG continues to strengthen its engagement with all stakeholders by adopting international best practices and enhancing corporate governance. Open dialogue, consideration of stakeholder interests, and the implementation of strategic sustainability initiatives enable the Company to achieve its long-term goals and ensure a positive impact on the economy, society, and the environment.