3.6. Reduce the number of deaths and injuries as a result of road accidents

The project “Trip Management”

In order to increase the level of transport security and create a culture of safe driving, it is planned to gradually replicate the project “Trip Management” to other subsidiaries of dependent organizations of KMG.

Result

Embamunaigas JSC has completed the realization of a pilot project for the introduction of an automated vehicle monitoring system “Trip Management”: the number of speed violations has been reduced by 62 %, 591 speed limit signs have been installed/updated on the roads of EMG production structural units, a driver rating based on a point rating on driving style and fixed violations, an up-to-date electronic map of field and dirt roads and the coordinates of EMG field objects have been drawn, new functionality has been introduced (waybills, deviations from the route, online notifications).

3.8. Ensure health coverage, including access to quality basic health services and access to safe, effective, high-quality and affordable essential medicines and vaccines

Personnel health management

KMG has endorsed a program for personnel health management. The main directions of the program:

Prevention of occupational diseases.

Development of minimum standards of medical care and medical care for employees of production facilities.

Systematic monitoring of the health of KMG Group employees.

Improving the quality of medical care and motivation of employees to a healthy lifestyle.

Medical health insurance.

Medical examinations and vaccination of employees are carried out on a regular basis.

Initiative “10 steps to recovery”

The health and well-being of the employees of JSC NC “KazMunayGas” are priorities that are of paramount importance when it comes to labor productivity, competitiveness and stability of enterprises. The “10 Steps to Wellness” are primarily aimed at increasing physical activity and eliminating unhealthy eating habits, and are effective in improving employee health outcomes.

Result

100 % of KMG employees are covered by the health insurance program.

3.9.Significantly reduce the number of deaths and diseases as a result of exposure to hazardous chemicals and pollution, and poisoning of air, water and soil

Leadership Initiatives

The Code of Leadership and Commitment of Employees to Comply with the Requirements of Industrial Safety, Labor Protection and the Environment is being implemented and realized.

Korgau Map

A program is being implemented aimed at identifying and informing about an unsafe condition/ unsafe behavior/ unsafe action/ dangerous factor.

7.1.Provide access to affordable, reliable and modern energy supply

The main strategic directions of the Group’s energy saving and energy efficiency development are modernization of technological equipment, introduction of energy-saving technologies, optimization of thermal energy generation and consumption, as well as the development of its own generation sources, including using renewable energy sources. The Program of Low-carbon Development until 2031 has been endorsed, priority areas of activity have been identified.

7.b. Expand infrastructure and modernize technologies for modern and sustainable energy supply

Development of renewable energy projects:

1 GW wind farm jointly with Total Eren,

120 MW hybrid power plant jointly with Eni,

50 MW wind power plant in Astana jointly with Eni,

Low-power SES at subsidiaries with a total capacity of 6.9 MW,

purchase of “green” electricity by at least 15 % by 2031,

procurement of green certificates of the international standard I-REC to confirm electricity consumption from renewable energy generation sources.

Result

2031:

15 % – the share of renewable energy in the balance of electricity consumption of KMG;

realization of renewable energy projects of at least 300MW;

100 % coverage of subsidiaries by energy management services;

More detailed information is provided in the section “Low-carbon Development Program”.

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

Programs for the development and involvement of young specialists in production

Zhas maman is a program for attracting and developing young specialists in AR and PPCP. From 2019 to 2021, 23 people study and work at AR, 9 of them are employed, and at PPCP – 14 people, 10 of them are employ.

Result

KMG provides employment for over 44 thousand people, including 82 % of men and 18 % of women.

8.6.Significantly reduce the proportion of young people who do not work, do not study and do not acquire professional skills

Dual training is a program that includes training, internship and further employment in the KMG Group of Companies. So, in the period from 2019 to 2021, 2 people out of 114 people studying under this program were employed in EMG; 7 out of 56 people were employed in AR, 41 out of 57 were employed in PPCP.

Result

Programs for attracting and developing young specialists in production: Zhas Maman, Dual training.

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

Standard rules for the provision of social support

Social support for employees of KMG subsidiaries and affiliates is defined in their collective agreements and rules for providing social support. In order to unify the types and norms of social support for all enterprises of the KMG Group of Companies, the Model Rules for Social Support of Employees of KMG subsidiaries and affiliates were adopted.

9.1. Develop high-quality, reliable, sustainable and resilient infrastructure, including regional and cross-border infrastructure, in order to support economic development and human well-being

KMG’s digital transformation program promotes the expansion of scientific research, improving the technological capabilities of industrial sectors. KMG invests heavily in research and local capacity building in this area. The development of domestic technological capacities to ensure industrial diversification will also have a positive impact on the climate situation in the country.

ABAI IS development project

provides for the centralization of all production information of the KMG Group in a single database on the Big Data platform, as well as its processing and analysis using artificial intelligence and machine learning.

The ABAI information System consists of 17 autonomous modules, each of which is aimed at solving specific production problems.

Result

5 ABAI modules have been implemented (“Database”, “Visualization Center”, “Monitoring of complications”, “Technological mode”, “Selection of down hole pumping equipment”). Achieved effects:

Additional production was obtained due to a more efficient technological regime in Kazgermunai;

The number of underground well workovers was reduced due to the reduction of failures of downhole pumping equipment at Mangistaumunaigas;

The accuracy of chemical reagents dosage has been improved, taking into account the actual corrosion rate in Ozenmunaigas;

Automated 12 types of reporting (measurements of oil production, dynamics of production indicators for wells, etc.).

9.4. Modernize infrastructure and re-equip industrial enterprises, making them sustainable by increasing the efficiency of resource use and wider use of clean and environmentally friendly technologies and industrial processes

The Program of low-carbon development until 2031 was approved, and priority areas of energy efficiency activities were identified:

optimization of energy management and creation of energy management services;

introduction of automated fuel and energy accounting and management systems, determination of the applicability of breakthrough projects on the assets of specific subsidiaries and affiliates, introduction of the best available technologies (BAT);

implementation of modernization of the mechanical fund;

optimization and modernization of the composition of transport equipment.

Result

2031:

100 % coverage of subsidiaries by energy management services;

reduction of energy intensity by 10 % from the level of 2019.

13.2. Integrate climate change responses into policies, strategies and planning

Corporate methodology for quantifying greenhouse gas emissions

In order to standardize approaches to inventory, monitoring and reporting on greenhouse gas emissions and to provide a unified methodological basis for calculating greenhouse gas emissions, a corporate methodology for quantifying greenhouse gas emissions is currently being developed.

The concept of internal carbon pricing

In order to create an additional incentive to reduce greenhouse gas emissions of subsidiaries and affiliates, as well as to fully consider the impact of carbon regulation on financial and economic performance, the concept of internal carbon pricing of JSC NC “KazMunayGas” Group of Companies is being developed.

Green Office

The corporate “green” direction is actively developing and the principles of the “green office” are being gradually introduced, such as the introduction of separate waste collection, water and energy conservation in office premises, etc.

Result

The Action Plan for the realization of the Low-carbon Development Program for the period 2022–2031 has been developed and endorsed.

The greenhouse gas reduction potential of KMG is 2,893,460 tons of CO₂, including direct emissions of 2,189,483 tons of CO₂ and indirect emissions of 703,977 tons of CO₂-eq., which is 27 % of the emissions level of 2019.

13.3. To improve education, dissemination of information and the capacity of people and institutions in mitigating the severity and reducing the consequences of climate change, adapting to them, and providing early warning.

Carbon Disclosure Project

The company calculates the carbon footprint and places a Climate Questionnaire on the Carbon Disclosure Project site.

Task Force on Climate-related Financial Disclosures (TCFD)

Disclosure of climate risks in accordance with the recommendations of TCFD, the working group on the disclosure of financial information related to climate change.

Result

The Department of Low-Carbon Development has been established;

A Competence Center for Hydrogen energy has been established on the basis of KMG Engineering LLP;

As part of a pilot project to capture and store carbon dioxide (CCUS) and determine the potential of CO₂ injection to increase the oil recovery of depleted oil reservoirs, CO₂ emission sources have been screened and fields are being screened to select a suitable reservoir for CO₂ injection.

15.3. Control desertification, restore degraded lands and soils, including those affected by desertification, droughts and floods, and strive to ensure that land conditions do not deteriorate

KMG implements projects and activities aimed at reducing the discharge of pollutants and reducing water intake from natural sources:

Carbon Disclosure Project

The company calculates the water footprint and places a questionnaire on water safety at the Carbon Disclosure Project site.

TAZALYQ

AR is actively implementing a large-scale environmental project TAZALYQ, designed to improve the state of the environment of the city of Atyrau.

Construction of desalination plants

The reservoir water desalination plant is a unique project in solving the issue of water supply in the Mangystau region. The plant will release the volume of Volga water for the development of the region in the amount of at least 6.2 million m³/year. Desalination plant in the area of the Kenderli recreation area of the Mangystau region. The estimated capacity will be 50 thousand m³ of water per day.

Land restoration

The Company is carrying out work on the restoration of “historical” oil waste and cleaning of oil-contaminated lands.

Result

TAZALYQ: reduction of water intake from the Ural River by 10 %, reuse of treated factory wastewater at the plant – 15 %. In 2021, the areas of evaporation fields occupied by wastewater of sections 1 and 2 were drained.

2024: Complete elimination of the Company’s historical waste, 2.1 million tons of oil waste were cleaned in 2019–2022.

15.5. Take significant measures to curb the degradation of natural habitats, stop the loss of biodiversity, and ensure the conservation and prevention of extinction of endangered species

Forest-climatic projects

Within the framework of the KMG Low-Carbon Development Program, it is planned to implement forest-climatic projects until 2031, which will have a beneficial effect on the preservation of terrestrial ecosystems.

Hierarchy of measures to mitigate impacts on biodiversity

The Company applies a hierarchy of mitigation measures for impacts on biodiversity when planning and implementing its operations, taking into account four key actions: preventing, minimizing, restoring, and compensating for potential significant direct impacts.

Result

2031: realization of forest-climatic projects on an area of 2,000 hectares.