About our report

PURPOSE OF THE SUSTAINABILITY REPORT

The concept that long-term profitability should be combined with social justice and environmental protection becomes more and more widespread. And these expectations will only grow and intensify as the need to move towards a truly sustainable economy will be more fully realized by those who finance companies and organizations, consumers and other stakeholders.

JSC NC “KazMunayGas” annually issues a “Sustainable Development Report” to describe the Company’s activities in the field of sustainable development. Sustainability reporting is aimed at helping the Company and its stakeholders to interact effectively, to set goals consistently, to evaluate the results of the global work, and to manage the transformations aimed at making the interrelated activities more sustainable.

  • Global Reporting Initiative Sustainability Reporting Standards
  • Our commitment to the principles of the UN Global Compact and SDG.

Global Reporting Initiative

This Report has been prepared in accordance with the GRI Standards: Comprehensive option.

The KMG Sustainability Report has also been prepared by using the GRI G4 Oil and Gas Sector Disclosures. Based on the Materiality Disclosures Service, GRI Verifies that at the time of publication of the Report, the Disclosures 102-40 to 102-49 of GRI 102: General Disclosures were correctly located in both the Content Index and in the text of the final Report. The content of the report is determined by using the GRI Standards methodology and the principles for determining the content and quality of the report.

This Report is the second KMG Report in accordance with the GRI Standards, it presents indicators and achievements for 2017, starting from January 1 and ending on December 31. To ensure data comparison and comparability capabilities for some indicators, information is presented taking into account the dynamics of previous reporting periods and plans for the coming years. All KMG Sustainability Reports are available in Kazakh, Russian and English on the company’s website: http://www.kmg.kz/rus/ustoichivoe_razvitie/reports/.

Communication on Progress

The 2017 Sustainability Report also represents the annual Communication on Progress (hereinafter – CoP) within KMG membership in the United Nations Global Compact (hereinafter – UNGC) and reflects information on the Company’s assistance in achieving the global sustainable development goals. The Communication on Progress is an annual report, whereby the company informs stakeholders about the efforts made for UNGC principles integration. All Sustainability Reports that reflect KMG Communications on Progress are posted on the UNGC website and are available for the stakeholders through the link: https://www.unglobalcompact.org/what-is-gc/participants/6810.

Since 2018, KMG signed a “Participant” tier according to the UNGC classification. Participants actively engage with the UN Global Compact networks at the global level as well as at the state or regional level and interact with all stakeholders on sustainable development issues and the current UNGC agenda.

As a “Participant” of the UNGC, KMG supports 17 Global Sustainable Development Goals adopted by the UN General Assembly aimed at transforming our world. The Sustainable Development Report provides information on KMG’s commitment to 17 Global Sustainable Development Goals and demonstrates the Company’s achievements for their implementation.

 Ten Principles of the UN Global Compact

Human Rights

Principle 1

Businesses should support and respect the protection of internationally proclaimed human rights; and

Principle 2

make sure that they are not complicit in human rights abuses.

Labour

Principle 3

Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;

Principle 4

the elimination of all forms of forced and compulsory labour;

Principle 5

the effective abolition of child labour; and

Principle 6

the elimination of discrimination in respect of employment and occupation

Environment

Principle 7

Businesses should support a precautionary approach to environmental challenges;

Principle 8

undertake initiatives to promote greater environmental responsibility; and

Principle 9

encourage the development and diffusion of environmentally friendly technologies.

Anti-Corruption

Principle 10

Businesses should work against corruption in all its forms, including extortion and bribery.


SUSTAINABLE DEVELOPMENT PRINCIPLES

Openness

We are open to meetings, discussions and dialogue.

We strive to build long-term cooperation with stakeholders, based on consideration of mutual interests, observance of rights and balance between the interests of the parties.

Accountability

We are aware of our accountability for impact on the economy, the environment and society.

We realize our responsibility to shareholders and investors for the growth of long-term value and sustainable development in the long run.

We seek to minimize the negative impact of our activities on the environment and society by taking care of resources (including energy, raw materials, water), sequential reduction of emissions, waste, and the introduction of high-performance, energy and resource-saving technologies.

We pay taxes and other fees provided by law to the state budget.

We preserve and create jobs in the framework of our development strategy and opportunities.

We strive to promote the development of the locality in which we operate within our strategy and within the available financial possibilities.

We wisely and reasonably make decisions and take actions at every level, starting from the level of officials and finishing with employees.

We strive to introduce innovative technologies aimed at careful and responsible use of resources, increasing labor productivity.

Our products, goods and services must comply with the standards of health and consumer safety established by law and be of proper quality.

We value our customers.

Transparency

Our decisions and actions should be clear and transparent for stakeholders.

We timely disclose information provided by law and our documents, taking into account the norms for the protection of confidential information.

Ethical behavior

In the basis of our decisions and actions, our values, such as respect, honesty, openness, team spirit and trust, good faith and justice.

Respectfullness

We respect the rights and interests of interested parties that follow from the legislation, concluded contracts, or indirectly within the framework of business relations.

Legitimacy

Our decisions, actions and behavior are in accordance with the legislation of the Republic of Kazakhstan and decisions of the bodies of organizations.

Respect for human rights

We respect and promote the observance of human rights provided for by the Constitution of the Republic of Kazakhstan and international instruments, such as the Universal Declaration of Human Rights.

We are categorically not acceptable and prohibit the use of child labor.

Our employees are our main value and the main resource, the results of our activity and the value created for investors directly depend on the level of their professionalism and security.

We involve openly and transparently professional candidates from the labor market and develop our employees on the basis of the principle of meritocracy.

We ensure the safety and security of our employees.

We carry out health programs and provide social support to employees.

We create an effective system of employee motivation and development.

Develop corporate culture.

Intolerance to corruption

Corruption destroys the value that our organizations create for our shareholders, investors, other stakeholders and society as a whole.

We declare intolerance to corruption in any of its manifestations in cooperation with all stakeholders.

Officials and employees involved in corruption cases are subject to dismissal and prosecution in accordance with the procedure provided for by laws.

Internal control systems in the Fund and organizations should include, inter alia, measures aimed at preventing, preventing and detecting corruption offenses.

A dialogue with stakeholders to increase their awareness in the fight against corruption shall develop.

Inadmissibility of a conflict of interest

Serious violations related to a conflict of interest may damage the reputation of the Company and undermine the credibility of shareholders and other stakeholders.

Personal interests of an official or an employee shall not affect the impartial performance of their official and functional duties.

In relations with partners, counting on the establishment and preservation of fiduciary relations, under which the parties are obliged to act with respect to each other possibly  honestly, conscientiously, fairly and loyally, take measures to prevent, identify and eliminate a conflict of interests.

Personal example

Each of us daily in his actions, behavior and decision-making contributes to the implementation of the principles of sustainable development.

Officials and employees occupying managerial positions should, by their personal example, motivate the implementation of the principles of sustainable development.