“Social” category

The Company recognizing the social responsibility of business, in order to ensure maximum benefits to society from its operations, accepts voluntary commitments for the responsible participation in the lives of the Company’s employees, the population in the regions where the Company operates and society as a whole.

Our employees

Human resources management is one of the priority areas in the Company’s business and human resources are managed on the basis of the Personnel Policy of “Samruk-Energy” JSC for 2018–2028.

The special focus of the Company will be on managing the planning and providing labor resources by managing the organizational structure and number of employees, managing the quality and competences system, and recruiting and selecting personnel.

Personnel Policy’s mission

To pool efforts of human resources for the achievement of strategic goals of the Company in the long term and providing a competitive advantage in the market.

“Samruk-Energy” JSC is one of the largest employers in the Republic of Kazakhstan. As of December 31, 2019, the Company’s headcount amounted to 17,699 people.

Personnel Policy’s vision

A single effective corporate culture aligned to the values of each employee, which contributes to the growth of human potential and dynamic sustainable business development.

The strategic role of the HR function is expressed primarily in the planning of labor resources for the future in quantitative and qualitative terms.

“Samruk-Energy” JSC personnel structure over the past years has remained stable.

The company strictly complies with applicable laws and, in case of other significant changes related to the activity, including upon termination of the employment contract, the company notifies employees in writing at least one month in advance.

The share of full-time employees in the reporting period was 100 %.

The composition of the organization’s employees at the end of 2019, broken down by gender, age group with an indication of minorities representatives

In connection with the production specifics of the Company’s operations, male employees are involved in the main production areas, whose share of the total staff in 2019 was 74 %. Together with the EBRD and Ergon Associates, a project was launched at “Samruk-Energy” JSC, within the framework of which a Statement of Support for 7 Principles for the Empowerment of Women, developed through a partnership between UN-Women and the United Nations Global Compact, was signed.

This document assumes adherence to the principles of gender equality as a key element of sustainable development, as well as the conviction that companies that provide women and men with equal opportunities are more successful and achieve better results.

To accomplish this goal, the Company has implemented an Action Plan. Over the reporting period, 170 employees across “Samruk- Energy” JSC group of companies were granted parental leave. Of these, 166 women and 4 men. 123 women resumed their work in the reporting year.

The main share of the Company’s staff consists of employees aged from 30 to 50 years (59 %). The average age of staff in 2019 was 42 years. The average work experience is 11 years. Percentage of employees hired in the reporting year – 13 %. The share of top managers in significant regions of the organization’s activities, hired from among the representatives of the local population – 96 %

In 2019, the staff turnover rate was 9 %. The main reasons are the prospect of higher salaries elsewhere and the lack of a career and professional development and training. Upon termination of the employment contract, the employer notifies employees in writing of termination of the employment contract at least one month in advance.

According to the Collective Agreement, to employees upon termination of the employment contract, in connection with retirement, a compensation payment of 3 wages is paid. Due to the specifics of the activity, “Samruk-Energy” JSC group of companies has no risk of using child and forced labor, as well as young workers performing hazardous work.

Motivation and remuneration

Understanding and satisfying the current and future expectations and needs of employees is the key to the longterm success and prosperity of the Company. The Company adheres to the following policy of remuneration and motivation:

1) setting a minimum guaranteed level of remuneration in the Company for all employees at a level exceeding the legislatively established minimum amount of remuneration, taking into account the need to meet basic living needs and provide a certain income, taking into account local conditions;

2) wage indexation based on the consumer price index;

3) periodic increase in wages resulting from better performance;

4) the use of flexible bonus systems for complete consideration of an individual labor contribution of an employee;

5) the objectivity and unity of the system of payment and motivation of workers and its competitiveness at the national level;

6) rewarding with corporate and industry awards.

The average salary of employees across “Samruk- Energy” JSC group of companies for 2019 increased in relation to the same indicator by 4 % – from 234,140 tenge to 243,640 tenge.

The minimum wage across the group of companies is 135,526 tenge. The ratio of the minimum wage of women to the minimum wage of men is 100 %. Wages are set based on the wage scheme and tariff rate.

In order to increase the content of wages and compensate for inflation processes, as well as in accordance with the Collective Agreements concluded, in 2019 “Samruk- Energy” JSC group of companies carried out an indexation of wages by an average of 5 %.

The employee compensation system is based on the principles of: internal justice and external competitiveness; transparency and clarity; compliance with the goals and financial and economic capabilities of companies; remuneration / bonus taking into account the results of the company and personal contribution.

In order to motivate employees, “Samruk-Energy” JSC, in recognition of merit, develops types of non-material motivation and forms of indirect additional financial remuneration – social protection programs for employees and additional benefits.

The Company, in accordance with the Collective Agreement, provides for: overtime pay, pay for work on holidays and weekends, at night, allowances and surcharges, pay for employees engaged in heavy work, work with harmful (especially harmful), dangerous working conditions, additional paid annual leave, financial assistance in connection with the birth of a child, financial assistance for the wedding and one-time bonus in connection with the anniversary (50, 60 and 70 years).

Employees who combine work with training in educational institutions are also provided with additional leave for the period of examination or adjustment sessions, preparation and protection of the graduation project (work), and sitting of final exams.

Range of ratios of standard entry level wage compared to local minimum wage at significant locations of organization’s operation

To motivate and encourage employees across “Samruk- Energy” JSC group of companies, the honoring of distinguished employees with state, departmental and industry awards from the CIS Electric Energy Council, Kazakhstan Association of Oil and Gas and Energy Sector Organizations “KAZENERGY”, “Kazakhstan Electricity Association” ALE, “Samruk-Kazyna” JSC, etc was held as part of the corporate culture development.

In addition, many employees of “Samruk-Energy” JSC group of companies were awarded the ranks and honorary diplomas of Kazakhstan Electricity Association. Employees of “Ekibastuz SDPP-1” LLP, “Shardarinsk HPP” JSC, “Samruk Green Energy” LLP, “First Wind Power Plant” LLP, “Alatau Zharyk Company” JSC were among the employees that were awarded by the Kazakhstan Electricity Association.

Development and career growth

The specifics of power industry requires constant continuous training and retraining of personnel for admission to work and maintaining a high level of professionalism. “Samruk- Energy” JSC group strives to constantly develop and train employees.

Personnel training and development are a key success factor in ensuring economical, trouble-free and efficient operation of an equipment and the company as a whole.

The training system aims to develop skills, knowledge and competencies of categories and groups of personnel depending on business’s goals and objectives. The priority in the development and implementation of training programs in accordance with the Company strategic directions is the development of employees competencies to work in a competitive environment in the field of developing commercial skills and effective sales, finance and investment management, due-diligence, international deals management, project management, change management, introduction of digital technologies, operational management.

“Global Digital Trends”, “Public Speaking” trainings were arranged for CEOs in 2019 as part of leadership programs. As well as training on the topics “People Management”, “Change Management”, “Strategic Management”, “Digital Skills” and coaching skills training for CEO-1 and CEO-2 level employees.

Improving the methods and forms of staff development of “Samruk-Energy” JSC includes the use of advanced digital technologies in training, the development of distance / module training, the introduction of internships, the development of internal coaching, mentoring and coaching.

In 2019, the total expenses for staff training amounted to 361,701 thous. tenge.

Average hours of training per employee per annum, by category of employees

An assessment of 94 % of the administrative and managerial staff was done, including 95 % of men and 94 % of women. The Company carries out the below described employees performance appraisal: — a comprehensive (final) assessment of goals and competencies, which includes: self-assessment, review meetings, a review of skills, potential, assessment and provision of directions for employees to improve business performance and development opportunities. — an interim review of the activities of employees, which is carried out quarterly, with the aim of monitoring the degree of achievement of goals for the reporting period.

In order to maintain and unravel competitiveness, proactively respond to external and internal challenges, build the potential of promising, highly professional and involved employees, educate own executive staff, the Company is developing a system of succession and talent management. “Samruk-Energy” JSC group of companies creates a single personnel reserve for occupying key positions and introduces selection and appointment procedures from the talent pool based on the principles of objectivity, transparency and fairness, voluntariness, and efficiency.

However, the emphasis should not be placed only on vertical career development, but also on the development of crossfunctional expertise.

The process of formation and development of the personnel reserve is closely integrated with the annual employees’ performance appraisal, based on which a talent map is created and individual development plans (IPR) of succession pool members are prepared, involved mentoring, internship programs and a succession program are developed. As part of the development of corporate governance, “Samruk- Energy” JSC Board of Directors and company management bodies pay a great deal of attention to the preparation and implementation of a plan for succession to senior positions.

Safety and health protection of employees

Subject to sustainable development principles, the Company pursues a policy on reducing occupational injuries rate and improve working conditions for employees. One of the main objectives of “Samruk-Energy” JSC group of companies is to ensure safe working conditions for each employee. The Company does not have activities that are potentially associated with high injuries or a high risk of certain diseases.

1.
hazard and risk analysis for individual professions and jobs;
2.
an assessment of potential impacts and risks caused by natural hazards, such as earthquakes, landslides or floods;
3.
the provision of personal protective equipment, an explanation of the requirements for the use of personal protective equipment, and ensuring the use of personal protective equipment;
4.
safety training for all personnel, taking into account the dangers and risks of their work;
5.
development of a program for the investigation of incidents, keeping records of incidents, including: the total number of hours of work, serious injuries, lost time and incidents that could lead to injuries, etc .;
6.
the development of a medical examination program for employees;
7.
ensuring the implementation of a system for issuing work permits, covering both its own employees and contractors, for hazardous tasks such as working in confined spaces;
8.
development and implementation of procedures “blocking and installation of warning plates”;
9.
monitoring hazard at the workplace;
10.
placement of safety signs (fire safety, emergency response, noise, smoking, etc.), where necessary;
11.
development of action plans in case of emergency, major industrial accidents.

Each company, which is the member of “Samruk- Energy” JSC group is certified according to the international standard “Occupational health and Safety Management System OHSAS-18001”.

Workplace labor conditions compliance certification (1 time in 5 years) is conducted in accordance with the RK legislation. Action Plans were developed on the basis of the certification results in order to improve the working conditions of employees working in harmful and dangerous working conditions.

In accordance with OHS Policy, each organization that is a member of “Samruk-Energy” JSC group of companies annually implements action plans for managing occupational health and safety issues, and conduct a set of organizational and preventive activities.

According to the Rules for working with staff in power sector companies of the Republic of Kazakhstan, approved by the order of the Minister of Energy of the Republic of Kazakhstan dated March 26, 2015 No. 234, SA conduct regular safety training with personnel as follows:

training for the new position, including: training; internship at a workplace; initial qualification test of knowledge; duplication;

regular qualification tests of knowledge;

control emergency and fire training;

briefings;

skills upgrading.

Training is conducted on a quarterly basis according to approved schedules. In accordance with Article 203 of the Labor Code of the Republic of Kazakhstan, production councils in charge of occupational health and safety issues were established at all SA of the Company (production councils).

It comprises representatives of an employer, representatives of employees, including technical inspectors for labor protection on a parity basis. Telephone conferences with the heads of units supervising OHS are conducted every quarter, as a result of which guiding documents on the prevention of workplace accidents are adopted. Written agreements on cooperation in OHS field were concluded with the authorized labor agencies of Almaty, Pavlodar and Turkestan regions.

The Company has introduced the practice of conducting scheduled and unscheduled (sudden) inspections on compliance with international standards requirements, regulations of the Republic of Kazakhstan, internal regulatory documents of the Company in OHS field. 14 scheduled inspections and 3 unscheduled (sudden inspections) were conducted during the reporting period.

Registration, reporting procedure and accounting of industrial accidents was carried out in accordance with Chapter 20 of the RK Labor Code “Investigation and registration of workrelated accidents” and other regulatory legal acts of the RK.

In line with the corporate standard “Accounting and investigation of incidents”, the practice of conducting internal investigations of accidents has been introduced in order to determine the root (system) causes. Incidents that did not lead to accidents are studied in line with the aforementioned corporate standard.

In order to maintain occupational safety and reduce occupational injury rate, 44 incidents that did not lead to accidents were investigated during the reporting period. Corrective measures have been developed based on the results of the investigations and are implemented today. Despite the large number of preventive and corrective measures taken, in 2019 10 workplace accidents were reported, including 1 group: 1 of them was fatal, 5 had a severe outcome, 5 had light outcome.

1 fact of concealment of an accident was revealed at “ESDPP-1” LLP, which occurred on February 23, 2018, it was work-related accident and recorded in 2019. The below are occupational injuries indicators by type of injury.

LTIFR, Lost Time Injury Frequency Rate, amounted to: 10 * 1000000/30359979.9 = 0,33. FIFR, Fatal Injury Frequency Rate, connected with the production activities of FIFR amounted to: 10 * 1000000/303599979 = 0,03. Accident severity rate – 574, 49. LDR, Lost Day Rate in connection with injuries amounted to: 1298 * 1000000 / 2259386 = 574,49. Lost days rate was 1298.

Missed days rate – 172984. Occupational diseases rate for the reporting period was not identified. Two fatal accidents recorded during the reporting period. In both cases were male workers in the Almaty region. One of the cases occurred at “AZhK” JSC and the second – at the contracting organization of “APP” JSC.

In order to provide employees with security guarantees, the Company will continue to develop a social protection program (medical insurance, life insurance, pensions, accident insurance, etc.), and improve working conditions.

In accordance with the law, the Company also provides sick leave payment, medical insurance, accident insurance of employees in the performance of their labor (official) duties, annual medical examination of employees and financial assistance in case of industrial injury.

An increase in workplace injury rate in 2018–2019 compared to 2017 is due to enhancing the work on increasing transparency of workplace accidents registration.

For instance, the activity “1000 days without accidents” was held at “ESDPP-1” LLP, in 2019 there were 6 accidents, including one accident concealed in 2018. Each case of work-related injury at any enterprise of the Company gets a high status of importance and is promptly submitted to the Board of Directors / Supervisory Boards of companies that are part of “Samruk-Energy” JSC group.

Actions taken to eliminate workplace accidents

The following measures are taken in order to reduce workplace injury rate across “Samruk-Energy” JSC group of companies:

1. All employees are informed about circumstances and causes of accidents.

2. All production personnel receive unplanned instructions (in case of accident occurrence)

3. Unscheduled test of employees for OR, occupational safety rules knowledge is held at business units at which an accident took place.

4. Occupational safety days with participation of CEOs of companies are organized on a monthly basis. Actions aimed at elimination of identified violations are taken according to the results of the occupational safety days.

5. Occupational health and safety services organize comprehensive inspections of equipment, buildings, facilities and workplaces. Action plans with deadlines and persons in charge based on results of comprehensive inspections are developed.

6. All production personnel are trained according to the Rules for training, instruction, and testing of employees’ knowledge of occupational safety. Executives complete training courses on occupational health and safety management systems, specialists take courses on upskilling in OHS field “NEBOSH” International certificate”.

7. Seminars and meetings with engineers and technicians of structural subdivisions authorized to give assignments, manage and perform works are held prior to the repair campaign; such workshops cover practical trainings on the correct access for teams to perform works and prepare work orders.

8. At least once every five years, enterprises undergo assessment of workplaces with respect to working conditions.

9. Equipment that exhausted its service life and posing a serious threat to production personnel is replaced according to the schedule.

10. The maps / registers of risks at workplaces are updated, and additional trainings on identification of hazards and risk assessment for staff are held.

11. A system of individual responsibility for violations of OHS requirements safety regulations has been introduced.

12. The practice of maintaining electronic journals has been introduced to record hazardous and harmful production factors.

13. As part of activities aimed at increasing transparency of all accidents reporting and accounting system, the practice of recording and investigating potentially dangerous incidents has been introduced. In 2019, a moratorium for taking disciplinary actions against those responsible for OHS related incidents (hereinafter – the moratorium) was introduced across the Company’s group. The moratorium has been extended until the end of 2020.

14. The employees of the Company’s group actively participate in events for the exchange of experience in OHS field, including those arranged by “Samruk- Kazyna” JSC (participation in the work of the Committee for OHS, Industrial Safety, Environmental Protection and the Expert Group).

Not least important area of activity on reducing occupational injuries rate is improvement of safety culture. As such, the Project for introduction of the new integrated security management model has been implemented within Transformation Program starting from March 31, 2017.

The project is aimed at reducing injuries and the severity of personnel injuries, as well as improving the safety culture (staff involvement and motivation).

Introduction of new methods/standards in OHS and environmental protection area includes:

1. Improvement of the process of studying the effectiveness of injury prevention management system;

2. The transition to a risk-based approach in the field of hazard analysis and accident prevention;

3. Introduction of the following corporate standards:

—“Assessment of OHS and environmental protection management system by executives”;

— “Conducting a leadership behavioral safety audit”;

—“OHS,FS, RS, Environmental protection risks evaluation”;

— “Golden safety rules”;

— “Accounting and investigation of incidents”;

— “Motivation of staff for safe behavior.”

The project is implemented at a group of companies on a staged basis. Target processes were introduced in 2019 at “Samruk-Energy” JSC, as well as at “Ekibastuz SDPP- 1” LLP, “Moynak HPP named after U.D. Kantayev” JSC and “Shardarinsk HPP” JSC.

The commencement of the Project was announced at “Ekibastuz SDPP-2” JSC and “First Wind Power Plant” LLP in the second half of 2019. This is the largest project in terms of impact assessment.

Currently, about 3500 employees are involved in the project. By December 31, 2021, the project will be implemented across the entire group of companies. Injury rate indicator is expected to reduce by 30 % until 2028 owing to the project implementation.

Fire safety

All entities that are part of “Samruk-Energy” JSC group of companies are provided with primary fire extinguishing equipment:

portable and mobile fire extinguishers, equipped with fire hydrants, provided with boxes with powder composition (sand), as well as fire-resistant fabrics (felt, etc.).

Supervisory government bodies, employees representatives of “Samruk-Energy” JSC, as well as labor protection specialists of an enterprise monitor the availability of fire-fighting equipment during scheduled and unscheduled inspections.

1 case of fire was reported in 2019 at the facilities of enterprises that belong to “Samruk-Energy” JSC group of companies. On April 4, 2019, at “Bogatyr Komir” LLP, fire occurred in the engine compartment of the excavator because the hydraulic pump shell broke.

Reason: rupture of shell of the hydraulic pump’s high pressure hose; 1 person got injured, it was an excavator operator who was paid 251,375 tenge.

Social stability and corporate culture development

The annual measurement of indicators of social stability and employee involvement allows taking timely measures on increasing employee loyalty and trust, social welfare and employee involvement, improving working conditions and processes associated with staff work, developing communication systems and informing about any changes. The Company aims for fast improvement of all indicators of these studies based on the analysis of social indicators and a survey of employees.

According to the results of the study, the Social Stability Index for 2019 was 65 %. Compared to the previous year, the indicator increased by 1 %. At the same time, the Engagement Index according to the results of the study for 2019 increased by 15 % compared to the previous year and amounted to 68 %.

Corrective Action Plans are developed and approved in order to improve the working conditions of employees and take the necessary management measures to stabilize the situation in the team.

Conciliation committees are formed and operate at “Samruk- Energy” JSC group of companies, consisting of representatives from the employer and representatives of trade union workers, whose main function is explanatory work among the labor collective, complaints and appeals procedures.

“Samruk-Energy” JSC group of companies strives to provide a competitive social package, the availability of which allows attracting qualified employees. Compensation and benefits are designed to improve the welfare and level of social protection of employees and their families.

The number of social payments and benefits provided to employees of the Company’s Group in accordance with signed collective agreements include:

1. financial assistance for health care provided at vacation, for the birth of a child;

2. financial assistance for burial (an employee and immediate relatives), for the treatment of retired employees, for emergency situations, etc.

3. financial assistance in connection with loss of income (registration of maternity leave or leave due to the adoption of a newborn child);

4. voluntary health insurance;

5. health resort treatment

6. a one-time incentive payment in connection with employees anniversary celebration (50, 60 and 70 years);

7. expenses for holding festive, cultural and sports events;

8. payment of loans;

9. allowance for injury and loss of primary income earner;

10. New Year’s gifts to children, etc. Social guarantees and benefits for 2019 were provided in accordance with the Collective Agreement in the amount of 789,942.6 thous. tenge.

Share of employees under collective bargaining agreement

The Company implements the following activities for health improvement, sports and recreation organization:

1. the provision of additional days to paid annual labor leave for years of employment;

2. carrying out physical fitness work and the development of mass sports among employees and members of their families, providing them with access to sports infrastructure, organizing training and competitions;

3. regular promotion of healthy lifestyle among employees using corporate media;

4. the annual allocation of funds for holding of cultural events, purchase of New Year’s gifts, purchase of valuable gifts on Power Engineer’s Day;

5. the organization of leisure activities for school-age children during the summer holidays at health camps or health and recreation resorts of the Republic of Kazakhstan;

6. partial compensation for the cost of trips to health camps and children’s health centers for children with disabilities and orphans for employees of the Company.

During the summer period of 2019, 3,134 people were on vacation at “Berezka” recreation facility of “Zhasybay” health and recreation center, and 1,152 children rested at “Karlygash” children’s health center of “Zhasybay” health and recreation center. For improvement of employee’s health, in 2019, the management of “Bogatyr Komir” LLP purchased and provided 260 vouchers to “Moildy”, “Belokurikha” and “Arman” health and recreation centers.

To provide employees with security guarantees, the Company will continue developing a social protection program (medical insurance, life insurance, pensions, accident insurance, etc.), improving working, and living conditions.

Payments and benefits provided to full-time employees which are not provided to employees who work under conditions of temporary or part-time employment, broken down by core activities

In 2019, social payments across “Samruk-Energy” JSC group of companies were made in the amount of 3,849,496 thous. tenge. In the same period of 2018, expenses for social payments amounted to 3,229,763 thous. tenge.

In the structure of payments, the main share is made up of expenses: a one-time allowance for healthcare when granting a leave – 28 %, treatment of employees in health resorts – 6 %, one-time benefit in connection with employees anniversary (50,60 and 70 years) – 3 %, financial assistance in connection with the birth of a child – 2 %, expenditures for festive, cultural and sports events – 3 %, etc of the total amount of social payments.

As part of the development of corporate culture in the reporting year, the Company group held cultural and leisure events dedicated to the celebration of the Women’s Holiday – March 8, Nauryz holiday, Constitution Day, Power Engineer’s Day with honoring distinguished employees and awarding state, departmental and industry awards of the CIS Electric Power Council, Kazakhstan Association of oil, gas and energy sector organizations “KAZENERGY”, ALE “Kazakhstan Energy Association”, JSC ,”Samruk-Kazyna” JSC, etc.

Young employees policy

The Company is fully engaged in increasing youth involvement, aimed at creating an active life position of the young generation, patriotic education, social support of youth and providing the Company with high-level specialists in the future.

The objectives of this area are:

— creation and development of the Youth Council under the management of the Company from among the youth assets of companies;

— interaction with youth public associations;

— participation of young specialists in scientific and practical conferences, forums, competitions and other events;

— the work with specialized educational organizations within cooperation on matters like training, search and selection of best graduates, organization of internships for students, participation in the improvement of curricula and the development of dual training, the development of scholarship programs, etc.;

— development of social support programs for young professionals, young families;

— development of adaptation systems, internships, mentoring, training, career and professional planning in relation to young specialists.

“Jas Energy” Youth Council was established in 2019. The performance results of the Council as of year-end 2019 were:

1. The first forum for young specialists of “Samruk- Energy” JSC group of companies – Jas Energy Fest;

2. Charity Fair “Shyn zhurekten”. The funds raised were used to support mothers with many children and the elderly;

3. Campaign “Vitamin day” in support of a healthy lifestyle among colleagues.

4. Campaign “Wish tree”, symbolizing a pure and sincere love of life. Young campaigners made it to help children suffering from cancer. Thus, children with cancer received their gifts.

The company declares its intention to attract and retain young, talented workers, create jobs for young workers, develop a mentoring institute, and educate gifted school graduates at universities of Kazakhstan, near and far abroad in the field of power industry.

As part of the implementation of “Jas Orken” program, “Samruk-Energy” JSC group of companies accepted 7 young specialists and 5 trainees for the internship as part of implementation of “Digital Summer” program. 2 interns were employed at Samruk-Energy JSC after completing an internship under the “Digital Summer” program.

With the support of “Samruk-Energy” JSC, the Almaty University of Energy and Communications held the Republican Olympiad in Physics and Mathematics. Over 60 people – including students from nine technical universities of the country and schoolchildren, attended the competition. Students competed in two disciplines: “Power” and “Heat energy” High school students demonstrated knowledge of physics and mathematics.

Today Samruk-Energy cooperates with leading domestic universities on matters related to students internships. According to the 2019 results, 420 students undertook an internship at the Company.

Human rights

As regards respect for human rights, the Company operates in strict compliance with the law, recognizes the importance and value of fundamental human rights and freedom proclaimed by the UN, including freedom of association, recognition of the right to collective bargaining, labor rights, the right to a favorable environment, and health protection.

Human rights observance principles are set out in the Code of Business Ethics of “Samruk-Energy” JSC. Moreover, at interaction with its suppliers and contractors, the Company requires compliance with labor laws, including compliance with health and safety requirements.

Relevant requirements are included in the standard agreements of the Company and its SA with suppliers. Employees have the right to collective bargaining in the context of current legislation through permanent Conciliation Commissions, Committees for the settlement of social and labor conflicts.

The recruitment procedure at the Company is carried out in accordance with the Rules for the competitive selection of personnel for vacant positions and the adaptation of new employees at “Samruk-Energy” JSC using the elements of testing and by complying with principles of transparency and meritocracy and transparency, considering the professionalism, personal qualities of a candidate and his compliance with the qualification requirements and competencies for the position, as well as the principles of fair and equal treatment of employees.

Number of complaints about the practice of labor relations filed, processed and settled through formal grievance mechanisms

“Samruk- Energy” JSC provides maximum assistance in preventing any form of discrimination, the use of child and forced labor, as well as the selection and promotion of personnel solely based on professional skills and knowledge.

11 trade union organizations comprising 15,199 people operate at “Samruk-Energy” JSC in order to regulate and protect the professional, economic and social labor rights and professional interests of the Company’s employees.

11 trade union organizations comprising 15,199 people operate at “Samruk-Energy” JSC in order to regulate and protect the professional, economic and social labor rights and professional interests of the Company’s employees.

“Samruk-Energy” JSC establishes dialogues with stakeholders on various aspects of its operations. In particular, in order to obtain information on concerns and complaints, a mechanism for submitting and reviewing complaints was developed using the feedback system on the Company’s external website – a written request or a telephone call to the “hot line”.

73 appeals were registered across “Samruk-Energy” JSC in 2019, all of these appeals were settled during the reporting period. For the same period of 2018, the company reported 83 complaints and appeals.

Presentation of health and safety issues in formal agreements with trade unions

The Company’s contribution to social development of regions where it operates

Over the years, as part of the social responsibility of business, the Company has been contributing to the development of the regions where it operates and maintains continuous interaction with local communities on the Company’s participation in the development of local infrastructure, improving the environmental situation in the region, social support and others.

For instance, the infrastructure of Solnechny village and Ekibastuz city is being developed in the region where “Ekibastuz SDPP-1 Plant” LLP and “Ekibastuz SDPP-2 Plant” JSC are located. So, a mosque, a church, a center for social and cultural activities for citizens, fitness centers, a swimming pool, a hotel and other infrastructure facilities were built in Solnechny village.

In turn, residential buildings, hostels, cultural center of power engineers were built in Ekibastuz city, and roads from Ekibastuz State District Power Plant-1 to Ekibastuz State District Power Plant-2 were also built.

Development of regions where the company operate

The implementation of some investment projects entailed the development of local infrastructure in the region where the subsidiaries and affiliates are located. For instance, the infrastructure of Solnechny village and Ekibastuz city is being developed in the region where “Ekibastuz SDPP-1 Plant” LLP and “Ekibastuz SDPP-2 Plant” JSC are located. So, a mosque, a church, a center for social and cultural activities for citizens, fitness centers, a swimming pool, a hotel and other infrastructure facilities were built in Solnechny village.

In turn, residential buildings, hostels, cultural center of power engineers were built in Ekibastuz city, and roads from Ekibastuz State District Power Plant-1 to Ekibastuz State District Power Plant-2 were also built. Similar projects were also implemented in the regions where “Moynak HPP” JSC was located (77 houses, 1 kindergarten and a mosque) for Moynak HPP employees, where 235 people live (of which 100 are workers, 135 are their families). “Bogatyr Komir” LLP fully supports various social initiatives aimed at improving the quality of people’s lives, and is actively involved in urban social programs. Huge work has been done to improve the children’s playgrounds and sports grounds of the Mountain municipal district of the city.

The playgrounds were repaired and restored, sand was delivered to the sandboxes, and the Shakhtar park was improved. A monument was erected to the great poet and thinker Mashkhur Zhusup Kopeyev, a traffic light was installed on Kunaev street. “Bogatyr Komir” LLP installed a children’s game facility in Ekibastuz city for total amount of 20,541.9 thous. tenge.

With the beginning of winter period, as in previous years, the New Year’s ice slide was installed in the city park “Shakhter”. In addition, for charity, “Bogatyr Komir” LLP provides assistance in providing ice for four wooden slides installed in Ekibastuz city.

Contribution to the environment

A Memorandum of cooperation in the field of environmental protection as regards the possibility of improvement and phased reduction of emissions into the environment was signed on November 18, 2019 between the Department of Ecology of Almaty region and “Almaty Power Plants” JSC. Landscaping and planting of designated areas were carried out – planning of the adjacent territory, work on the care of lawns and green spaces. As part of the landscaping, “Bogatyr Komir” LLP performed a compensatory planting of trees in the amount of 50 pieces.

In September 2019, “Almaty Power Plants” JSC held an environmental challenge “Hand over waste paper – save the tree!”, According to the results of the campaign, 3,204 kg of waste paper was delivered, worth 144 thous. tenge. “Almaty Power Plants” JSC hosted the environmental festival “We are for Green Kazakhstan!” The main goal of the festival is creating a responsible attitude to the environment, moral and legal principles of nature management.

Assistance for the population

“Bogatyr Komir” LLP provides annual financial assistance to events under social partnership agreements with Ekibastuz city mayor administration, charitable support was received by city non-profit organizations and educational institutions, such as the sponsored lyceum № 6, the Ekibastuz children’s fund, and the public association “Environmental Protection” and others.

Financial assistance of “Bogatyr Komir” LLP for 2019 amounted to 243,370 thous. tenge. “Ekibastuz SDPP-2 Plant” JSC provided children with disabilities, children from poor families, orphans and children left without parental care in Ekibastuz city and Solnechny village with New Year gifts. On the eve of the New Year, the Company delighted with New Year’s surprises the children with disabilities, orphans and children left without parental care in Solnechny village, and the children of the Orphanage “Umit”, Public Association “Kazakh Society of the Blind”, Public Association “parents of children with autism” and the Charity Fund of Ekibastuz city were not left out. “Ekibastuz SDPP-2 Plant” JSC annually participates in the preparation of Solnechny village for the celebration of the New Year.

In 2019, the entrance arch of the village was decorated, a tree, the figures of Father Frost (Santa Claus) and the Snow Maiden were installed on the Abay square, and a slide and a skating rink for children were flooded. Also the plant’s workshop workers made a present for the people of the city – they made and installed various illuminations in the form of a snowman, New Years’ tree, clocks, etc.

160 free vouchers to “Karlygash” children health camps were provided to children from low-income and large families, orphans and children left without parental care. 200 places to the “Karlygash” Children Health Camp located on the shore of Zhasybai lake are annually provided to orphans and children from low-income families.

In addition to projects aimed at developing local infrastructure, the Company carries out activities in the form of supporting vulnerable population through charity and sponsorship:

Assistance to pensioners and soldiers – internationalists in the form of a monthly payment for 150 kW electricity consumed (“Shardarinsk HPP” JSC)

Providing charity to participants of the Second World War, the Labor Front and persons equated to them on the Victory Day (“Ekibastuz SDPP-2 Plant” JSC, “Almaty Power Plants” JSC)

Assistance to low-income and large families (“Bogatyr Komir” LLP, “Shardarinsk HPP” JSC, “Almaty Power Plants” JSC). In 2019, 5 students from low-income families were provided with school supplies.

A one-time payment of 30,000 tenge was made to 5 disabled people from the local population.


At the same time, in accordance with the Fund’s charity policy, all sponsorship and charity activities of the Fund’s group of companies are carried out by a single Operator – “Samruk- Kazyna Trust” Social Project Development Fund, which implements socially significant projects through competitive selection in a number of directions.

In this regard, the Company cooperates with “Samruk- Kazyna Trust” fund as part of “Social Investment Program” implementation and uses the Company’s own resources for managing external social programs. Currently, the work on informing about potential opportunities for receiving social support is conducted with the Company’s subsidiaries and affiliates, as well as for submitting applications to “Samruk-Kazyna Trust” fund, the activities on analyzing and identifying the locations of “Samruk- Energy” JSC group enterprises that have the most relevant social problems are underway.

Mass cultural events for the population

“Ekibastuz SDPP-1” LLP was actively involved in organizing mass festivities for residents of Ekibastuz city dedicated to the celebration of “Nauryz meiramy”. As part of the celebration, workers played a theatrical performance with a demonstration of beautiful Kazakh custom “Kuda tusu” (marriage proposal) and “Syrga salu” (putting on earrings for the bride). This performance did not leave indifferent the members of the committee of “The Best Yurt” contest and became the winner in the nomination “En uzdik saltdastur” (“The best custom”).

In addition, a festive concert and charity refreshments like plov, nauryz-kozhe and baursaks in the amount of 1000 servings were served and grocery sets were provided to the city’s residents. “Almaty Power Plants” JSC joined the challenge dedicated to the 175th anniversary of the great Abay; at the end of November 2019, they held “Abay Alemi” contest. The main message of the event was to raise public awareness of the way of living and career of Abay, as the country’s spiritual wealth. The competition consisted of three stages. 7 teams participated in the competition, the competition participants were awarded in the following nominations: “Best Reader”, “Best Fans”, “Best expert in the life and works of the poet”.