ECOLOGY AND INDUSTRIAL SAFETY

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Our management approach

We recognise the nature and scale of the impact of our activities and relate them to the importance of sustainable use of natural resources, protecting the health of our employees in all business areas and the communities in which we operate, and preserving a healthy environment.

The Company has made significant progress in making its operations more environmentally friendly. This is due to the implementation of effective internal standards, an environmental culture and continuous improvement of the management system. The Company has a “zero result” target aimed at avoiding negative environmental impacts.

Health, Safety and Environment (HSE) management objectives are directly linked to the KMG Company’s Development Strategy for 2022–2031. The Strategy includes strategic initiatives to increase environmental responsibility. Priority areas for KMG Group in terms of environmental protection include management of air emissions, reduction of flaring of crude gas, water management, production waste and land reclamation, and biodiversity conservation.

The management of KMG and its SDEs follows the principle of zero tolerance for losses and damages related to environmental pollution. In accordance with the requirements of the new Environmental Code of the Republic of Kazakhstan, the Company is guided by KMG’s Environmental Policy to ensure the collection, storage, analysis and dissemination of environmental information in its operations.

The Company has adopted an Emissions Management Policy consisting of eight key principles, six of which are directly related to climate change issues, aimed at completely eliminating regular gas flaring.

In an effort to minimise the regular flaring of crude gas, in 2015 the Company supported the World Bank Initiative “Zero Routine Flaring by 2030”. One of our most important tasks in reducing atmospheric emissions is to increase the beneficial use and utilisation of associated petroleum gas and to minimise gas flaring. Crude gas flaring volumes under this initiative are reported on an annual basis to the World Bank office in Kazakhstan.

KMG’s main water use principles are the “Eight Water Principles”, which systematise the approach to water management in KMG SDEs. Several large-scale projects are underway to treat wastewater and saline water for industrial needs in order to release volumes of fresh water for the benefit of the population. To address the issue of preventing water resources deficit, ensuring the planned growth of the economy, as well as to improve the water resources management system in KMG, a long-term Water Management Programme has been developed in KMG Group.

Health, Safety and Environment (HSE)
Management System

The Health, Safety and Environment Management System (MS) has been developed in accordance with the requirements of laws of the Republic of Kazakhstan, industry and international standards ISO 14001 and ISO 45001, internal HSE guidelines using best international practices and approaches, and recommendations of the International Association of Oil and Gas Producers (IOGP), and includes 10 key elements that are based on such fundamental principles as goal achievement, leadership, risk management, and continuous improvement.

Since 2006, KMG has implemented an integrated quality, environment, health and safety management system (IMS) in accordance with ISO 9001, ISO 14001 and ISO 45001. SDEs with significant energy consumption are certified to the ISO 50001 standard. The effectiveness of the IMS is regularly confirmed by independent auditors.

To improve its management system, KMG is certified for Occupational Health and Safety Management System for compliance with the international standard ISO 45001.

The management system provides an environment for managing HSE risks and opportunities. The expected results of the management system are to prevent injuries and damage to the health of the Company’s employees, as well as to ensure safe working conditions. Elimination or minimisation of HSE risks through effective preventive actions is critical for the Company.

Taking into account best and emerging practices in health, safety and environment management, a three-level committee system has been introduced and implemented to increase the commitment and involvement of managers at all levels and employees in HSE management processes:

• First Level – the Health, Safety, Environment and Sustainability Committee of KMG’s Board of Directors (HSESC);
• Second Level – the HSE Committee at KMG level;
• Third Level – the HSE Committees of SDEs.

In 2023, a new version of the MS Manual was updated and approved to include amendments and additions aimed at improving HSE in KMG Group in terms of:

• responsibility of managers to ensure compliance of KMG Group employees with KMG Vital Rules;
• providing KMG Group employees with a guarantee of the legal right to refuse or stop work in the event of a potential hazardous situation that reasonably poses a threat to the life and health of employees or the environment;
• development and implementation of a programme for personnel health management in KMG Group based on health risk assessment;
• involving KMG Group employees and contractors in risk management processes, identifying and reporting potential hazardous situations through the use of the Qorgau Card.

A number of internal regulatory documents have been revised in 2023 in order to maintain the suitability and consistency of the MS documentation:

• Regulations on HSE Risk Management during High-Hazard Operations in KMG Group;
• Regulations on the Organisation of Emergency Medical Service in KMG Group;
• Rules on Accident Notification and Investigation at JSC NC “KazMunayGas”;
• Corporate Standard for Provision of Workwear, Footwear and Personal Protective Equipment in KMG Group.

HSE risks, including environmental, climate change and water scarcity risks are monitored on a quarterly basis. KMG regularly analyses environmental performance and benchmarks against leading international oil and gas associations (IOGP, CDP). The Company pays particular attention to environmental aspects and environmental risk assessment.

Every year, the KMG’s Health, Safety and Environment Department holds a Group Health, Safety and Environment CEO Forum.