SUSTAINABILITY REPORT 2023

Environmental Protection

KMG strives to minimise its environmental impact by preserving biodiversity, using natural resources sustainably, recycling production and consumption waste and raising environmental awareness among the population.

Environmental issues are one of KMG’s top priorities, and the Company is constantly working to improve its environmental performance.

KMG’s environmental activities are carried out in various areas, such as air protection, sustainable use of water resources, protection of subsoil and land resources, and waste management. KMG’s environmental policy is aimed at minimising environmental impact by reducing emissions into the atmosphere as a result of production activities. The main principles of the policy are: minimising environmental impact by reducing emissions of pollutants from production activities, increasing environmental safety of production and improving environmental performance.

KMG recognise our responsibility to society for sustainable use of natural resources and preservation of a favourable environmental situation in the regions where we operate.

The Company intends to use natural resources sustainably, minimise the impact of pollutants on the environment, promote energy and resource conservation, produce waste at a minimum, and introduce technologies, equipment and materials that do not harm the environment. In addition, we take actions to adapt to climate change and compensate for possible environmental damage.

To this end, a number of activities aimed at ensuring environmental safety have been implemented, such as work on recycling historical oil waste and cleaning oil-contaminated land, strengthening environmental awareness among employees, participation in tree planting campaigns, development of action plans to reduce air emissions, implementation of environmental programmes, etc.

A number of the Company’s subsidiaries and dependent entities have implemented the automated air quality monitoring systems at the sanitary protection zone, as well as directly at emission sources, which display information on the state of the environment.

Automated Environmental Monitoring Information System Project

The Automated Environmental Monitoring Information System (AEMIS) is designed to create a unified information space in the field of environmental protection.

The aim of the project is:

  • To create a unified environmental information space;
  • To increase transparency, efficiency and minimise human error to avoid potential environmental fines.

The main objectives of the AEMIS are:

  • Automation of processes of environmental reporting to public authorities;
  • Maintenance of a database of regulatory permits and calculation of payments for environmental emissions;
  • Prompt response to potential excess emissions by promptly correcting faults in the process by the production units;
  • Operational environmental monitoring based on the results of industrial environmental control;
  • Generation of corporate reports via synchronisation with HSE system of KMG.

Key Figures of 2023

  • SOx emission intensity – 0.23 (IOGP – 0.09)
  • NOx emission intensity – 0.36 (IOGP – 0.35)
  • APG flaring rate – 1.4 (IOGP – 8.6)
  • APG utilisation rate – 98.9 %
  • Restoration of historical waste and oil-contaminated land: 1,145.04 thous. tonnes (2022 – 693.7 thous. tonnes)
  • CDP climate rating: ‘C’
  • CDP water security rating: ‘C’
Environmental performance, tonnes per 1,000 toe of HCS production

Year

SOx emission rate

NOx emission rate

Raw gas flaring rate

Raw gas utilisation rate, %

2021

0.22

0.24

2.09

98

2022

0.21

0.31

1.5

98.8

2023

0.23

0.36

1.4

98.9