Sustainability Governance Structure
On the way to achieving the Sustainable Development Goals, the Fund relies on a strong and clear internal management system.
All employees and officials at all levels contribute to sustainable development, implement principles and activities in the field of sustainable development through personal behavior and compliance with relevant policies and standards.
The Board of Directors, with the assistance of its constant committees, provides strategic guidance and supervision of activities in the field of SD, considers issues and results in strategic areas, approves the Low-carbon Development Concept, ESG Policy. Since 2016, the Fund has been publishing an annual sustainability report according to the standards of the Global Reporting Initiative (GRI). The report is reviewed by the Audit Committee of the Fund’s Board of Directors and approved by the Board of Directors.
The Audit Committee controls the procedures ensuring compliance by the Fund with the requirements of legislation, ethical standards, monitors risk management, including SD, for the quality and reliability of financial and non-financial information and reporting.
The Fund’s executives responsible for solving economic issues, as well as issues of sustainable development, are members of the Management Board.
It should be noted that in 2022, the Fund underwent structural changes aimed at implementing ESG principles. A separate structural unit has been created – the ESG Department under the leadership of the Managing Director for Strategy and Asset Management, coordinating work in this direction.
Since 2019, the H&S Committee has been operating under the Management Board and since 2021 the Committee on Sustainable Development, whose goal is to increase the efficiency and coordinate the activities of the PC in the field of sustainable development. In addition, the H&S Committee has been functioning under the Management Board since 2019, which coordinates and monitors the implementation of measures in the field of industrial safety. The activities of the Committees make it possible to manage centrally the risks and opportunities of sustainable development and serve as an indicator of the Fund’s involvement in sustainable development issues and recognition of the strategic importance of this activity for the Fund’s group of companies.
Results of 2022 in the following areas:
- standards in state-owned enterprises are as close as possible to the requirements of leading listed exchanges, OECD regulations, recommendations of the International Finance Corporation (IFC), Institute of Directors (IoD);
- the criteria for selection to the members of the Board of Directors have been increased, in terms of independence and compliance with the balance of skills, experience, elements of diversity and inclusiveness, industry specifics;
- unnecessary links have been eliminated, additional mechanisms have been created to improve the efficiency, optimization and efficiency of the implementation of business processes of interaction between the Fund and portfolio companies;
- the share of independence in the BoD for the Fund group has been increased to 43%;
- the share of women in the BoD in the Fund group was 15%.
- A self-assessment report on the Fund’s compliance with the Santiago Principles: The 24 Generally Accepted Principles and Practices for sovereign wealth funds) has been prepared, which is sent to the International Fund of Sovereign Wealth Fund (IFSWF);
- ESG principles have been implemented, including disclosure of information in the annual report and the Sustainability Repor;
- the Fund's group of companies has 77 independent compliance services and 44 divisions entrusted with the execution of anti-corruption compliance functions.
- 43 projects were implemented for a total amount of KZT10 billion allocated from the charity budget;
- salaries have been increased from 5 to 48% for low-paid positions and production personnel;
- free creative, sports and educational clubs have been organized for low-income families of the capital within the framework of the Zamandas project;
- doctors and medical workers of the medical trains “Zhardem” and “Salamatty Kazakhstan”, equipped with modern diagnostic equipment and “operating rooms on wheels”, throughout the year provided free medical care to people in separated rural regions of Kazakhstan who do not have access to quality medical care;
- launch of the Comfortable Schools project to build 401 schools by 2025.
- development of top-level internal regulatory documents on industrial safety (Policy and Corporate Standard);
- development of the corporate course “Culture of Safe Work”, which has been approved by the Institute for Safety and Health of the UK IOSH;
- the practice of using proactive accident prevention tools, such as behavioral audits/safety dialogues; identification, registration and investigation of dangerous conditions, dangerous actions, potentially dangerous Near Miss incidents; application of the right of employees to stop or refuse unsafe types of work has been introduced into the activities of portfolio companies;
- cross-audits of subsidiaries and affiliates with participation of experts from portfolio companies, during which more than 600 inconsistencies were identified, potentially being prerequisites for uncountable cases;
- reduction in the number of victims of industrial accidents by 16%;
- the LTIF coefficient was 0.16;
- decrease in the FAR by 11%.
- approval of the new HR Policy of the Fund;
- staff turnover was 8%;
- the share of production personnel was 93%;
- the share of women was 28%;
- the number of applicants on the unified online recruiting portal QSamruk.kz . increased by 60%;
- the number of vacancies closed by external candidates through qsamruk.kz in 2022 is 7249 (1,795 in 2021).
- The share of RES and HPP in electricity production is 6%;
- The Resource and Energy Saving Program has been approved;
- The Fund began to implement elements of Smart Grid technology, using the example of KEGOC JSC (for more details, see page XX);
- Construction of a maneuverable combined-cycle gas plant (CCGT) in Turkestan has begun;
- Portfolio Companies of Samruk-Energy JSC and JSC NC KazMunayGas plan to introduce additional RES (including hydroelectric power plants) with a total installed capacity of about 2.3 GW by 2027;
- It is planned to put into operation a wind power plant with a capacity of 1 GW from 2026 (in 2025 – 100, in 2026 +100 MW, in 2027 - +300 MW);
- Qazaq Green Power PLC is registered in the jurisdiction of the AIFC to manage “green” assets (RES, HPP).
- The Low-carbon Development Concept of the Fund was approved, including the Plan for the Transition to the Low-carbon Business Model;
- The Plan for transition to the low-carbon business model has been approved, which contains 53 activities in four directions;
- 9 PCs have approved their own Low-Carbon Development Programs.
- Samruk-Energy JSC made its debut offering of green bonds by public subscription on the stock exchange of the Astana International Financial Center - Astana International Exchange in the amount of KZT18.4 billion with a coupon rate of 11.4% per annum and a circulation period of 6.5 years;
- JSC NC KazMunayGas has acquired international renewable energy certificates;
- FWPS LLP registered 136 thousand tonnes of CO2-eq as offset;
- Offset projects of Energiya Semirechiya LLP for 180 thousand tonnes of CO2-eq and Samruk-Green Energy LLP for17 thousand tonnes of CO2-eq are at the registration stage;
- The successful placement of "green" bonds of JSC "KEGOC" on the trading platform of JSC "Kazakhstan Stock Exchange" (KASE) with a total volume of 16.1 billion tenge with a margin of 3% took place.