ESG risk rating

An ESG risk rating was approved by KMG’s Board of Directors as a functional KPI for 2023, reflecting the Company’s intent to manage material ESG risks and commitment to sustainability principles in the international oil and gas market. Achievement of the above KPI includes addressing the key ESG matters within KMG Group.

In 2023, Sustainalytics assessed KMG’s ESG risk management at 32.3. The Company’s risk of exposure to ESG factors is high. The Company received a “strong” score for its ESG risk management from Sustainalytics. At the same time, ESG risk exposure was rated as “high”. According to the analysts, KMG’s high exposure to ESG risks is on a par with the industry average, i.e. risks inherent in the oil and gas industry.

The key ESG challenges for KMG are reducing emissions and waste, carrying on with the Low‑Carbon Development Programme, placing a stronger focus on the health and safety of employees, and aligning its corporate governance system with best global practices. Even so, KMG received a strong risk management score as regards anti‑corruption, improved its performance around human capital management, and maintained a stable risk management score for resource utilisation, biodiversity and business ethics.

KMG will keep streamlining its activities to meet the highest sustainability standards. We will take steps to prevent and eliminate workplace accidents, consistently reduce GHG emissions, and work more to improve social and environmental conditions across our footprint. KMG has developed and approved an action plan to improve its ESG risk rating, which includes 43 measures that cover and factor in environmental and social risks for the business, as well as corporate governance risks for the Company.

Particular attention is paid to enhancing the sustainability culture. Sustainability training courses are held on a regular basis for employees of the Corporate centre and subsidiaries and associates.