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.
Implementation of sustainable development goals at KMG
SDGs Ensure healthy lives and promote well-being for all at all ages
|3.6. By 2020, halve the number of global deaths and injuries from road traffic accidents
Travel Management project
In order to improve transport safety and foster a safe driving culture, the Travel Management project is planned to be rolled out across KMG’s subsidiaries and associates.
The Travel Management pilot project run at Embamunaigas (EMG) was successfully completed with the following results:
|3.8. Achieve health coverage, including access to quality essential healthcare services, and access to safe, effective, quality, and affordable essential medicines and vaccines.
Employee health management
KMG will develop an Employee Health Management Programme that will focus on:
Medical examinations and vaccination of employees are carried out on a regular basis.
10 Steps to Better Health initiative
Caring for the health and well-being of our employees is a priority for KMG and is critical to our productivity, competitiveness and business continuity. Primarily aimed at increasing physical activity and removing unhealthy eating habits, the initiative has proved effective in delivering strong health outcomes for the Company’s employees.
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.
The Korgau Card programme is aimed at identifying and reporting unsafe conditions / unsafe behaviour / unsafe actions / hazardous factors.
SDGs 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.
The 2031 Low-Carbon Development Programme was approved and its priority focus areas defined.
Improved energy efficiency:
|7.b. Expand infrastructure and upgrade technology for supplying modern and sustainable energy services
Renewable energy projects:
On 31 May 2022, KMG approved an Action Plan to implement its 2031 Low-Carbon Development Programme.
Achieving energy efficiency gains of 541,029 tonnes of reference fuel by:
SDGs 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 more than 44,000 people across its regions of operation, including 82% of men and 18% of women
|8.6. Substantially reduce the proportion of youth not in employment, education or training
Zhas Maman programme run by Atyrau Refinery and Pavlodar Refinery to attract and develop young talent.
Dual training: a programme offering training, internship and further employment with KMG Group.
As part of the recruitment and development programme for young professionals skilled in production occupations, in 2019–2021, Atyrau Refinery hired 9 out of 23 people enrolled in the programme, and Pavlodar Refinery hired 10 people out of 14 people enrolled.
As part of the dual training programme, in 2019–2021, EMG hired 2 out of 114 people enrolled in the programme, Atyrau Refinery hired 7 out of 56 people enrolled, and Pavlodar Refinery employed 41 out of 57 people enrolled.
|8.8. Protect labour rights and promote safe and secure working environments for all workers
Standard Rules for Rendering Social Support
Social support for employees of KMG subsidiaries and associates is set out in their collective bargaining agreements and the Rules for Rendering Social Support. To unify the types and standards of social support across all KMG Group enterprises, the Standard Rules for Rendering Social Support to Employees of KMG Subsidiaries and Associates were adopted.
SDGs 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.
Five pilot modules of ABAI developed and tested:
|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:
Targets set for 2031:
SDGs Take urgent action to combat climate change and its impacts
|13.2. Integrate climate change measures into policies, strategies and planning.
Corporate methodology for measuring GHG emissions
In order to standardise approaches to the recording, monitoring and reporting of GHG emissions and to provide uniform guidelines for their calculations, KMG developed and approved a corporate methodology for monitoring and recording GHG emissions.
A department for low-carbon development has been set up.
Company-wide green initiatives are being actively promoted, and the Green Office principles, including the introduction of separate waste collection, water and energy saving in the office, etc., are being gradually implemented.
KMG approved an Action Plan to implement the 2022–2031 Low-Carbon Development Programme.
KMG’s GHG emissions reduction potential is 2,893,460 tonnes of CO2, including direct emissions of 2,189,483 tonnes of CO2 and indirect emissions of 703,977 tonnes of CO2 e, which is 27% of the 2019 emissions.
A Competence Centre for Hydrogen Energy was set up at KMG Engineering.
As part of a pilot project to deploy carbon capture, utilisation and storage (CCUS) and explore the potential for CO2 injection to enhance oil recovery from depleted oil reservoirs, we have screened the CO2 emission sources and are now screening fields to select a reservoir suitable for CO2 injection.
|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 and implemented an Internal Carbon Pricing Programme with a view to providing additional incentives for subsidiaries and associates to reduce their emissions as well as fully assessing the impact of carbon-related regulations on its financial and economic performance.
The Company calculates its carbon footprint and posts its Climate Questionnaire on the website of the CDP (formerly Carbon Disclosure Project).
Task Force on Climate-related Financial Disclosures (TCFD)
KMG signed an agreement with the EBRD to review the Company’s resilience to climate-related risks and prepare for making disclosures consistent with the TCFD recommendations.
SDGs 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:
The Company calculates its water footprint and posts its Water Security Questionnaire on the website of the CDP.
Atyrau Refinery is heavily focused on Tazalyq, a large-scale project designed to improve the environment in the city of Atyrau.
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.
The Company works to ensure recovery of historical oil wastes and oil-contaminated soil treatment.
TAZALYQ: 10% reduction in water intake from the Ural River, reuse of 15% of the factory’s treated plant effluents. In 2022, areas of evaporation fields previously used to store the sewage from sectors 1 and 2 were drained.
2024 target: complete elimination of historical oil waste; in 2019–2022, the Company treated 2.1 mln tonnes of oil waste.
|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.
As part of KMG’s Low-Carbon Development Programme until 2031, forest-climate projects are expected to be implemented, delivering benefits for terrestrial ecosystems.
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.
Target set for 2031: forest-climate projects to be implemented across 2,000 ha.