Commitment to UN Global Compact principles and 17 Sustainable Development Goals
KMG’s approach to sustainable development is based on aligning the Company’s interests and plans with the basic principles of the UN, universal human values, global trends, and development priorities in Kazakhstan.
KMG reiterates its commitment to all the ten principles of the UN Global Compact.
- Principle 1. Businesses should support and respect the protection of the internationally proclaimed human rights.
- Principle 2. Businesses should make sure that they are not complicit in human rights abuses.
- Principle 3. Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining.
- Principle 4. Businesses should uphold the elimination of all forms of forced and compulsory labour.
- Principle 5. Businesses should uphold the effective abolition of child labour.
- Principle 6. Businesses should uphold the elimination of discrimination in respect of employment and occupation.
- Principle 7. Businesses should support a precautionary approach to environmental challenges.
- Principle 8. Businesses should undertake initiatives to promote greater environmental responsibility.
- Principle 9. Businesses should encourage the development and diffusion of environmentally friendly technologies.
- Principle 10. Businesses should work against corruption in all its forms, including extortion and bribery.
KMG is committed to all the 17 Sustainable Development Goals of the United Nations (UN SDGs).
We prioritise ten SDGs and twenty‑four targets in line with our strategic goals and priorities and report on our contribution to their achievement.
| SDGs | Priority targets | KMG’s contribution |
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Ensure healthy lives and promote well‑being for all at all ages | 3.6. Reduce the number of deaths and injuries from road traffic accidents | Travel Management project In order to improve transport safety and foster a safe driving culture, a phased roll‑out of the Travel Management project is planned between 2023 and 2025. It involves the introduction of an automated vehicle monitoring system across KMG’s subsidiaries and associates with the largest fleets within KMG Group. The following activities were completed as part of the project roll‑out:
Convincer frontal collision simulator To raise employee awareness across KMG’s subsidiaries and associates about the importance of using seat belts, three Convincer crash simulators were acquired by KMG Group (KazTransOil, Ozenmunaigas, Oil Transport Corporation). Outcome As part of a campaign to stop road accidents run in 2023, the Convincer simulator was used for practical training, involving 7,783 employees of KMG’s subsidiaries and associates. A total of 1,451 employees of KMG’s subsidiaries and associates and 454 employees of contractors completed defensive driving training in line with international RoSPA standards |
| 3.8. Achieve health coverage, including access to quality essential healthcare services, and access to safe, effective, quality, and affordable essential medicines and vaccines | Personnel health improvement programme A personnel health improvement programme is currently being developed for the period of 2024–2028. Its main focus areas include:
Health insurance Medical examinations and vaccination of employees are carried out on a regular basis. Outcome 100% of KMG’s employees are covered by health insurance | |
| 3.9. Substantially reduce the number of deaths and illnesses from hazardous chemicals and air, water and soil pollution and contamination | Leadership initiatives The Code of Employees’ HSE Leadership and Commitment has been introduced and is being implemented. Qorgau Card The Qorgau Card programme is aimed at identifying and reporting unsafe conditions / unsafe behaviour / unsafe actions / hazardous factors | |
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Achieve gender equality and empower all women and girls | 5.1 End all forms of discrimination against all women and girls everywhere 5.5 Ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision‑making in political, economic and public life | KMG staunchly upholds the requirements of labour legislation in the Republic of Kazakhstan, ensuring compliance with its provisions, which prohibit any forms of labour discrimination against individuals based on their origin, social status, position, wealth, gender, race, nationality, language, religion, beliefs, place of residence, age, physical disabilities, or affiliation with public associations. Our recruitment processes are conducted without any restrictions or biases related to gender, age, or any other characteristics. A unified system of remuneration and social benefits is established for all. Increasing the share of women on the Board of Directors and Supervisory Boards across KMG Group to 30 % by 2030 Promoting WEPs established by UN Women and the UN Global Compact The Women’s Empowerment Principles (WEPs) are informed by international labour and human rights standards and grounded in the recognition that businesses have a stake in, and a responsibility for, gender equality and women’s empowerment. Within this initiative, the following steps are planned:
Outcome The share of women on the Board of Directors, the Management Board, and Supervisory Boards:
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Ensure access to affordable, reliable, sustainable and modern energy, improve energy efficiency and increase the share of renewable energy | 7.1. Ensure access to affordable, reliable and modern energy services | KMG Group’s key strategic energy saving and energy efficiency initiatives include process equipment upgrades, deployment of energy saving technologies, optimisation of heat generation and consumption, and the development of the Group’s own generation assets, including RES‑based ones. Our initiatives: The 2031 Low‑Carbon Development Programme was approved and its priority focus areas defined. Improved energy efficiency:
Outcome KMG approved an Action Plan to implement the 2022–2031 Low‑Carbon Development Programme. In 2023, 60 initiatives were implemented, resulting in savings of ca. 22.2 thous. tonnes of reference fuel, an equivalent to the emissions reduction of 45 thous. tonnes of CO₂. A technological audit of furnaces and boiler equipment was conducted at KMG Group’s production assets (Ozenmunaigas, Embamunaigas, Mangistaumunaigaz, and Karazhanbasmunai). Following its completion, 23 initiatives were developed, 14 of which were approved as economically and technically viable and will be included in the audited subsidiaries’ and associates’ action plans implemented as part of the Low‑Carbon Development Programme. The overall savings potential of these initiatives is 32.1 thous. tonnes of reference fuel or 42.9 tonnes of СО₂. Sustainable aviation fuel (SAF) In September 2023, KMG together with Air Astana, with the support of the European Bank for Reconstruction and Development, started a feasibility study of the SAF market and its prospects in Kazakhstan. At the meeting on 23–24 November 2023, the study participants identified SAF technologies with the highest potential in Kazakhstan. At the next stages, they will be scrutinised to assess the feasibility of SAF production by KMG and review the relevant regulatory framework in Kazakhstan. The feasibility study results will be presented in 1H 2024. |
| 7.b Expand infrastructure and upgrade technology for supplying modern and sustainable energy services | Renewable energy projects:
Outcome 2031:
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Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work | 8.5. Achieve full and productive employment and decent work for women and men, including for young people and persons with disabilities, and equal pay for work of equal value | KMG employs over 49,000 individuals. Ensuring gender equality and non‑discrimination at all levels is integral to our human capital development. We embrace global sustainability initiatives, including those that promote equal opportunities for both men and women, and uphold the principle of equal pay for work of equal value. |
| 8.6. Substantially reduce the proportion of youth not in employment, education or training | Recruitment and development programmes for young professionals skilled in production occupations Zhas Maman programme run by Atyrau Refinery and Pavlodar Refinery to attract and develop young talent. In 2022–2023, Atyrau Refinery hired 7 out of 31 people enrolled in the programme, and Pavlodar Refinery hired 1 individual (the only one enrolled). Dual training: a programme offering training, internship, and further employment with KMG Group. In 2022–2023, Embamunaigas hired 4 out of 99 people enrolled in the programme, Atyrau Refinery hired 17 out of 62 people enrolled, and Pavlodar Refinery employed 36 out of 53 people enrolled. Internship programme: the programme kicked off with a focus on three professions: process unit operator, pump and compressor operator, and instrumentation and control technician. Interns complete their training and practical internships at Atyrau Refinery. In 2022–2023, Atyrau Refinery hired 29 out of 60 individuals enrolled in the programme. | |
| 8.8. Protect labour rights and promote safe and secure working environments for all workers | KMG provides social benefits to its employees in line with collective bargaining agreements and internal regulations. Collective bargaining agreements are in place at 25 KMG’s subsidiaries and associates. The social package offered by them encompasses over 50 types of social benefits. Currently, all terms and conditions outlined in the collective bargaining agreements and internal regulations are fully adhered to across all KMG enterprises. For more details, see the Personnel Development section. | |
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Build resilient infrastructure, promote sustainable industrialisation and foster innovation | 9.1. Develop quality, reliable, sustainable and resilient infrastructure, including regional and transborder infrastructure, to support economic development and human well‑being | KMG’s Digital Transformation Programme promotes the expansion of scientific research and development of technological capabilities across industrial sectors. KMG invests heavily in relevant scientific research and local capacity building. The development of domestic technological capacities to ensure industrial diversification will also have a positive impact on the climate situation in the country. Development of the ABAI Information System Under the project, all production data of KMG Group will be centralised in a single Big Data database and will be processed and analysed using AI and machine learning. The ABAI information system will comprise 17 standalone modules, each designed to tackle specific operating issues. Outcome Six ABAI modules implemented (Database, Map Builder, Technological Mode, Selection of Downhole Pumping Equipment, Selection of Well Interventions and Assessment of Their Efficiency, and Production Planning and Monitoring) Effects achieved:
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| 9.4. Upgrade infrastructure and retrofit industries to make them sustainable, with increased resource‑use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes | The 2031 Low‑Carbon Development Programme was approved, with the following priority areas in energy efficiency defined:
Outcome 2031:
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Make cities and human settlements inclusive, safe, resilient and sustainable | 11.6. By 2030, reduce the adverse per capita environmental impact of cities, including by paying special attention to air quality and municipal and other waste management | Implementation of the best available technologies aimed at gradual reduction of environmental impact In 2024, several companies within KMG Group, which are among the 50 largest pollutant emitters in Kazakhstan, plan to develop a programme aimed at improving their environmental performance. This programme will be based on national industry‑specific guidelines on best available technologies and will require a comprehensive environmental approval of the Ministry of Ecology and Natural Resources of the Republic of Kazakhstan. Drafting a programme to bring down pollutant emissions KMG Group is planning to develop a programme with the aim of reducing pollutant emissions and mitigating its environmental impact. Implementation of the World Bank’s Zero Routine Flaring by 2030 initiative by 2023 KMG is involved in the World Bank’s 2015 initiative to eliminate the routine flaring of associated petroleum gas by 2030. This global effort brings together governments, oil companies, and public organisations to maximise the beneficial utilisation of associated petroleum gas. In alignment with this initiative, the Company implements its Emissions Management Policy, which aims to fully eradicate routine gas flaring by 2030. Green Belt tree planting initiatives Atyrau Refinery has committed to planting 10,000 trees in the city of Atyrau over the course of three years, in line with the Memorandum of Cooperation it signed with the Akimat of the Atyrau Region and KMG on the margins of the environmental conference held on 5 June 2023. Outcome
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Ensure sustainable consumption and production patterns | 12.4. Achieve the environmentally sound management of chemicals and all wastes throughout their life cycle, in accordance with agreed international frameworks, and significantly reduce their release to air, water and soil in order to minimise their adverse impacts on human health and the environment 12.5. By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse | Water Resources Management Programme In order to establish measurable goals for reducing water intake and increasing water reuse, KMG Group has developed long‑term Water Resources Management Programme. Tazalyq Atyrau Refinery is actively implementing an ambitious Tazalyq project, which aims to bring about significant environmental improvements. Programme to dispose of legacy oil waste A dedicated programme is in place to facilitate the disposal of KMG’s historical oil waste and decontaminate oil‑contaminated soils. Outcome From 2018 to 2023, a total of 3.2 mln tonnes of oil products was recovered as part of the legacy waste disposal efforts. |
| 12.6. Encourage companies, especially large and transnational companies, to adopt sustainable practices and to integrate sustainability information into their reporting cycle | Carbon Disclosure Project The Company calculates its water footprint and posts its Water Security Questionnaire on the website of the CDP. Green Office Company‑wide green initiatives are being actively promoted, and the Green Office principles, including the introduction of separate waste collection, and water and energy saving in the office, are being gradually implemented. Outcome As part of our efforts to implement the Green Office initiative and reduce plastic and metal waste generation, a reverse vending machine was installed on the first floor of our office in the Emerald Towers business centre. Since its introduction, the machine has successfully collected 17,516 plastic bottles and 3,403 aluminium cans. The Water Security Questionnaire for the year 2022 was posted on the CDP platform. | |
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Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss. | 13.2. Integrate climate change measures into policies, strategies and planning. | Reduction of methane emissions KMG entered into a Memorandum of Understanding with Carbon Limits, a global leader in methane leakage management. In line with the MoU’s roadmap, KMG’s employees completed training in methane leakage management. Plans for 2024 include simulation‑based training using the LDAR programme for methane leakage detection and repair and an inventory of methane emissions at KMG’s assets using Mist, a methane inventory systematic tool. Joining Oil and Gas Methane Partnership 2.0 The Company joined the UNEP OGMP 2.0 methane initiative, which entails setting its individual targets for reducing methane emissions and reporting methane emissions to UNEP. Joining Oil and Gas Decarbonisation Charter KMG joined the Oil and Gas Decarbonisation Charter at the 28th Conference of the Parties to the UN Framework Convention on Climate Change. Forest‑climate projects A designated project area of 2,000 ha in the Pavlodar Region was identified, and an assessment of its potential for GHG sequestration is currently underway. Expansion of GHG emissions reporting scope To improve GHG emissions reporting and management across the Group, KMG made an inventory of Scope 3 indirect emissions across 12 categories and designed a methodology to collect inputs with the aim of subsequently integrating it into its GHG Emission Monitoring and Reporting Methodology. Outcome
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| 13.3. Improve education, awareness‑raising and human and institutional capacity on climate change mitigation, adaptation, impact reduction and early warning. | Internal carbon pricing framework KMG developed internal carbon pricing mechanisms with a view to implementing carbon footprint reduction planning and ensuring relevant action by subsidiaries and associates as well as fully assessing the impact of carbon‑related regulations on its financial and economic performance. Currently, efforts are underway to integrate these mechanisms into business processes across KMG Group. CDP The Company calculates its carbon footprint and posts its Climate Questionnaire on the website of the CDP (formerly Carbon Disclosure Project). According to the Oil and Gas Benchmark published by the World Benchmarking Alliance, which evaluates low‑carbon transition and social impact indicators, KMG ranked 37th among the top 100 global oil and gas companies in 2023. This marks a significant improvement from its 77th position in 2022. Task Force on Climate‑related Financial Disclosures (TCFD) As part of activities to improve international ratings on climate risk management and sustainability, in 2023 KMG teamed up with the European Bank for Reconstruction and Development for a project to develop an action plan for corporate climate governance and disclosure aligned with the TCFD recommendations. In addition, KMG was advised to add new measures to its decarbonisation list, namely steps aimed at climate change mitigation and adaptation in order for the Company to achieve its climate goals, reduce risks, and capitalise on climate‑related opportunities. The analysis insights were leveraged to develop a Corporate Climate Governance Plan. Outcome In December 2023, an updated Internal Carbon Pricing Programme was approved, which includes a mechanism for applying an implicit carbon price to assess the Company’s carbon regulation costs. | |
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Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss. | 15.3. Combat desertification, restore degraded land and soil, including land affected by desertification, drought and floods, and strive to achieve a land degradation‑neutral world. | KMG implements projects and initiatives aimed at curbing discharges and reducing fresh water withdrawal from natural sources: Carbon Disclosure Project The Company calculates its water footprint and posts its Water Security Questionnaire on the website of the CDP. Efforts are underway to develop KMG Group’s Water Resources Management Programme. Tazalyq Atyrau Refinery is actively implementing an ambitious Tazalyq project, which aims to bring about significant environmental improvements. Construction of desalination plants A formation water desalination plant is a unique project to address the water supply issue in the Mangistau Region. The plant will free up at least 6.2 mln m3 of the Volga River water annually to help develop the region. A desalination plant near the Kenderly recreational zone, Mangistau Region. Its planned capacity is 50,000 m3 per day. Land remediation The Company works to ensure recovery of historical oil wastes and oil‑contaminated soil treatment. Outcome Tazalyq: The project to upgrade closed‑loop mechanical treatment plants at Atyrau Refinery is nearing completion. Phase 1 was completed, and Phase 2 construction is in its final stages. Reconstruction of the channel for wastewater treated to standard quality and reclamation of evaporation fields are also underway. The evaporation fields were split into four sectors, with the work progressing in stages. Sectors 1 and 2 of the fields were fully drained and reclaimed. A pipeline was laid in place of the previously existing open channel, which had been used for discharging wastewater from Atyrau Refinery to the evaporation fields. |
| 15.5. Take significant action to reduce the degradation of natural habitats, halt the loss of biodiversity and protect and prevent the extinction of threatened species. | Mitigation hierarchy to manage biodiversity risks In its planning and operations, the Company relies on mitigation hierarchy to manage biodiversity risks, with four key steps in place: avoidance, minimisation, rehabilitation/restoration, and offset. Biodiversity Conservation Programme We are developing a Biodiversity Conservation Programme, setting goals and action timelines related to preserving biodiversity in collaboration with local and international conservation organisations. Forest‑climate projects As part of KMG’s Low‑Carbon Development Programme until 2031, forest‑climate projects are expected to be implemented, delivering benefits for terrestrial ecosystems. Outcome A designated project area of 2,000 ha in the Pavlodar Region was identified, and an assessment of its potential for GHG sequestration is currently underway. | |
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Strengthen the means of implementation and revitalise the Global Partnership for Sustainable Development | 17.1. Strengthen domestic resource mobilisation, including through international support to developing countries, to improve domestic capacity for tax and other revenue collection | KMG makes tax disclosures in accordance with the relevant GRI standard and the Country‑by‑Country Reporting initiative under OECD Action 13. Payments to governments The Company issues annual reports on payments to governments with regard to the following types of payments:
All taxes other that the mineral extraction tax.
The mineral extraction tax (MET) is a mandatory tax payable by a subsoil user for each type of extracted mineral resources (such as crude oil), underground waters, and therapeutic mud. The tax amount is calculated based on the physical volume of resources (e.g. crude oil, gas condensate, or natural gas) extracted over the tax period.
The signature bonus is a one‑off payment made by a subsoil user upon either acquiring a subsoil use right for a particular territory (subsoil area) or in case of its enlargement, in accordance with the legislation of the Republic of Kazakhstan.
This category encompasses all other payments to governments, including export customs duties. Outcome KMG follows the best global practices designed to improve transparency in government payments, enhance accountability for mining revenue management, and promote public awareness of the mining companies’ activities in the regions where they operate. |
| 17.16 Enhance the Global Partnership for Sustainable Development, complemented by multi‑stakeholder partnerships that mobilize and share knowledge, expertise, technology and financial resources, to support the achievement of the Sustainable Development Goals in all countries, in particular developing countries Encourage and promote effective public, public‑private and civil society partnerships, building on the experience and resourcing strategies of partnerships | In pursuit of the UN Sustainable Development Goals, KMG actively collaborates with industry peers and international agencies and participates in intergovernmental organisations that focus on energy conservation, occupational health and safety, environmental protection, combating climate change, reducing emissions, and promoting sustainable green energy and similar initiatives. |
Upholding human rights
KMG is committed to sustainable business development, with a strong focus on both financial and social performance.
We are dedicated to upholding internationally recognised human rights, as enshrined in the International Bill of Human Rights and ILO’s labour standards, and implementing the UN Guiding Principles on Business and Human Rights.
KMG staunchly upholds the requirements of labour legislation in the Republic of Kazakhstan, ensuring compliance with its provisions, which prohibit any forms of labour discrimination against individuals based on their origin, social status, position, wealth, gender, race, nationality, language, religion, beliefs, place of residence, age, physical disabilities, or affiliation with public associations.
We make no use of child or forced labour and acknowledge the equal rights of all employees, regardless of their race, religion, or gender.
No instances of discrimination were reported in 2023.
In 2022, KMG’s Board of Directors approved the Human Rights and Public Relations Policy. For more details on this policy, see the Corporate Documents section on the Company’s website.
We undertake the following human rights commitments:
- respecting human rights in accordance with international standards;
- introducing programmes to address human rights issues within the industry, with the approval by senior management of KMG and its subsidiaries and associates;
- monitoring and reporting the impact of business activities on human rights;
- following established procedures for handling complaints and grievances at KMG;
- providing remedies and legal protection to mitigate or alleviate any negative impacts;
- exercising due care in relation to human rights by monitoring the impact of business activities on human rights and preparing relevant reports;
- ensuring that employees have access to legal protection to address any negative impacts of business activities on human rights;
- communicating KMG’s expectations regarding human rights to employees and third parties.