Maintaining the balance
of sustainable business
Dear stakeholders,
I am honored to present the 2022 Sustainability Report of NC KazMunayGas JSC. As we reflect on the challenges and successes of the past year, we recognize the importance of responsible decision-making and the wellbeing of our employees and of the communities within which we work.
Despite facing various domestic and geopolitical challenges, our commitment to sustainability remains unwavering. We continue to work on our strategic initiatives and reaffirm our dedication to the ten principles of the UN Global Compact, the Sustainable Development Goals, and the UN Guiding Principles on Business and Human Rights.
To reinforce this commitment, our Board of Directors has adopted relevant policies and commitments applying to all levels of management, including the Sustainable Development Policy and Human Rights and Public Relations Policy, Energy Policy, and Corporate Health and Safety Standard “Life-Saving Rules” for KMG Group employees.
Throughout the reporting year, our Health, Safety, Environment, and Sustainability Committee held five meetings to discuss forty issues related to sustainable development. Additionally, we hosted a special meeting of KMG’s Board of Directors on sustainable development to discuss global trends and further ESG development within our company, as well as the status of our low-carbon development program.
We are proud to have undergone an independent assessment by Sustainalytics, an international rating agency, and to have maintained a stable average level of risk management at 28.4 points. We are ranked 19th out of 266 oil and gas producers in the year 2022. However, we recognize that there is always room for advancement, and we remain committed to mitigating the impact of potential ESG risks throughout every key business processes across the KMG Group of Companies.
As part of our commitment to the climate agenda, we are implementing a Low-Carbon Development Program for 2022–2031, with the goal of reducing our carbon footprint by 15 % by 2031 compared to 2019. Together with partners, we are implementing renewable energy projects with a total capacity of at least 1 GW with an energy storage system of 300/600 MW.
The company endeavors to enhance its ESG performance and to integrate ESG goals into the strategic and medium-term KPIs of managers. KMG is committed to standards of high social responsibility based on the principles of partnership with employees and trade unions. We have an action plan for the systematic implementation of measures for decarbonization. Based on this, we are developing annual KPIs related to the reduction of carbon intensity of production and decarbonization.
At KMG, we value openness and transparency in our operations and strive to maintain an active dialogue with our stakeholders. We disclose information about all material aspects of our operations in our reports, through the media, and on our corporate website. We are grateful to our stakeholders who help us maintain a balance of sustainable business practices across all areas of our operations.