Sustainable development

The Fund’s Development Strategy until 2028 which defines corporate governance and sustainable development as one of the three strategic goals of the Fund for the next decade, was approved by the Sole Shareholder of the Fund in 2018. As part of this strategic goal, we are planning to continue to achieve a high level of corporate governance and sustainable development, to increase the corporate governance in the Fund and Portfolio companies, to increase human resources, and to ensure the implementation of meritocracy principles. The new strategy also provides for the implementation of sponsorship initiatives, as well as sustainable development initiatives identified by the Fund. The Fund will implement measures and indicators within the Concept of the Republic of Kazakhstan for the transition to the green economy.

Based on the results of the implementation of this strategic goal it is expected to create a management system that ensures the achievement of improved indicators in sustainable development, labor protection, health and environment, improved economic indicators and financial stability, anti-corruption, increased corporate governance rating and social stability rating.

Strategic goal - sustainable development, performance of companies, portfolio management.

target Sustainable Development Goals
target Materiality Analysis
target Stakeholder Engagement
target Implementation Methods of Sustainability Initiatives

Sustainable Development Goals

The Fund supports UN Sustainable Development Goals

On January 1, 2016 the world has officially launched the 2030 Agenda for Sustainable Development - an active transformation plan based on 17 sustainable development goals - to address pressing global challenges over the next fifteen years.

17 sustainable development goals and 169 tasks (SDGs) are aimed at realizing human rights for all, they are complex and indivisible and ensure the balance of the three components of sustainable development: economic, social and environmental. These tasks and goals will stimulate the actions of national governments over the next 15 years in the areas of great importance to humanity and the planet. We have chosen nine goals of these that have strategic priority for the activities of the Fund Group, the achievement of which it will contribute to in the course of its core business. The current activities also integrate tasks that enable the achievement of the remaining UN sustainability goals. The sustainable development goals and objectives of the Fund Group are consistent with the UN selected sustainable development priorities.

Good health and well-being
Quality education
Gender equality
Decent work and economic growth
Industry, innovation, and infrastructure
Reduced inequalities
Sustainable cities and communities
Climate action
Partnerships

Materiality Analysis

In order to understand the needs of stakeholders and determine what the Fund’s sustainable development is for them, we conducted a materiality analysis.

At the first stage, it was proposed to determine a list of aspects of sustainable development related to the activities of the Fund and their impact.

Based on the results of the survey and discussions with all key stakeholders to identify significant aspects, we identified 17 topics related to sustainability that are important for the Fund and our stakeholders.

Comprehensively covering economic, environmental and social aspects on the path of sustainable development, the Fund seeks to ensure an interactive dialogue with all interested parties and create additional value.

Economic topics:

  • Key financial indicators
  • Anti-corruption
  • Financial stability
  • Socially Responsible Procurement

Ecological topics:

  • Environmental Compliance

Social topics:

  • Non-discrimination
  • Human rights
  • Social Responsibility
  • Health and Safety
  • Employment
  • Transparency and Public Relations
  • Personnel screening and employment
  • Employee-management interactions
  • Corporate Culture
  • Remuneration and Evaluation
  • Training and education
  • Freedom of association and collective bargaining

Stakeholder Engagement

The Fund's interaction with stakeholders is focused on achieving the goals of sustainable development and harmonizing the interests of all stakeholders. Interaction with stakeholders is based on the principles of respect for interests and cooperation

The Fund sees its social responsibility in being a reliable partner for stakeholders. We conduct a dialogue and build relations with stakeholders on the basis of the principles of mutual respect and partnership, information transparency, regularity of interaction and faithful observance of commitments undertaken.

The Fund uses a Standard process of Stakeholder engagement in accordance with AA1000 SES:

  • Identification of Stakeholders
  • Prioritization of Stakeholders
  • Interaction with Stakeholders
  • Efficiency and Assessment Reporting
  • Planning of Stakeholders Interaction

Principles of interaction with stakeholders

  • Information disclosure
  • Proper management functions
  • Identifying and studying stakeholders
  • Accountability
  • Consultations with stakeholders
  • Negotiations and partnership
  • Conflicts settlement procedures
  • Stakeholder involvement

Implementation Methods of Sustainability Initiatives

  • Strong corporate governance and improved risk culture Is provided by adoption and implementation of new Corporate Governance Code and Risk based approach to Sustainability
  • Financial sustainability Is provided by implementation of development priorities defined in Development plans
  • Strong Human Development Is provided by launching the new HR system with 3 main components: HR business partnership, HR expertise Center, General HR Service
  • High ethical standards and anti-corruption Is provided by Implementation of Ethics Code and Compliance function
  • Responsible procurement Is provided by introduction of the new procurement approach, including category procurement management and launching the system of preliminary qualification of potential suppliers, as well as improved transparency of procurement process
  • Good reputation and high level of transparency Is provided by Implementation of the Communication Plan and increasing the transparency and information disclosure processes
  • Strong H&S culture Is provided by promotion of strong H&S culture within the Portfolio companies of the Fund
  • Responsible investment Is provided by implementing key Responsible Investment Principles in Investment Policy of the Fund and fitting sustainability metrics of ESG into the process of design, implementation and monitoring of an investment
  • Ecological responsibility It is provided by observing environmental legislation, norms and standards in the field of environmental protection, and also by investing in the development of the environmental activities of the Fund and the Fund’s Group