Sustainable
development

“Samruk-Energу” JSC is committed to 17 SDGs, integrating principles of sustainable development into its activities. The company is aware that the environmental and social issues that each of the SDGs reflects are relevant and have an impact for any organization.

The Company’s sustainable development policy comprises the extensive application of sustainable development aspects through the introduction of best practices in the field of production, environmental initiatives, occupational safety and the social sphere to ensure sustainable economic growth in the regions where the Company operates, while maintaining an optimal balance between the interests of stakeholders and strategic Company objectives.

Sustainable development management

The Company, applying a risk-based approach in its operations, regularly analyzes its operations and risks in three aspects of sustainable development, and also seeks to prevent or reduce the negative impact of its operations on stakeholders.

A comprehensive risk assessment, is conducted regularly through the use of risk management tools and a systematic approach to sustainable development:

1) an assessment of current and future risks associated with the action of global factors of sustainable development;

2) forecasting of economic, social and demographic and environmental trends;

3) analysis of social, environmental and economic aspects of the Company’s current impact on the region where it operates;

4) development of actions aimed at managing the Company’s impact on the region where it operates, risk reduction and implementation of opportunities;

5) improvement of risk culture in general, analyzing the effectiveness of risk management actions, identifying opportunities associated with current and future risks.

Please use the following link to learn more about key trends and risks in the field of the Company’s sustainable development https://www.samruk-energy.kz/images/inter/1.pdf

On the basis of external and internal assessment of the Company’s performance, risks and 17 Goals of Sustainable Development, for efficient and successful management of economic, environmental and social aspects, the Company implements sustainable development initiatives in the below areas:

1) the introduction of high ethical standards and building a corporate culture based on trust;

2) introduction of sustainable development principles and application of a risk-based approach in the practice of project management at all investment stages: assessment and management of the impact on the social, environmental and economic areas (forced relocation, biodiversity, cultural heritage, etc.) in accordance with Sustainable development guidelines of the Company;

3) an increase in financial sustainability;

4) facilitate responsible procurement based on principles of fair and free competition, mutual benefit, transparency and full responsibility for the commitments made, as well as the introduction of requirements for suppliers to comply with ethical standards and guidelines for suppliers of the Company, set out in the Guidelines for sustainable development of the Company;

5) improving the safety culture through the involvement of employees in occupational safety management system and increasing the effectiveness of control over the occupational health and safety management system through application of international standards;

6) increasing the level of social responsibility, following the principles of the UN Global Compact, investment in human assets;

7) ensuring environmental sustainability, including the search and implementation of technologies, which are considered as the best from an environmental and economic point of view, streamlining of production processes, implementation of projects using renewable energy sources, identification and prevention of potential emergencies.

The report on the execution of the Sustainable Development Initiative Plan for 2019 is available on the corporate website of the Company: https://www.samruk-energy.kz/ru/navigation-and-support/sustainable-development

“Samruk-Energy” JSC has been an active participant of the UN Global Compact since 2011 and has followed the 10 principles of the UN Global Compact in its strategy and daily operations.

The Company has committed to the following principles:

1) In the area of respect for human rights: to support and respect the observance of human rights proclaimed by the international community; ensure its non-involvement in human rights violations.

2) In the area of labor relations: to support freedom of association and recognition of the right for collective bargaining in practice; stand for the destruction of all forms of forced labor; advocate for the complete elimination of child labor; advocate for the elimination of discrimination in labor and employment.

3) In the area of environmental protection: to contribute to the prevention of negative environmental impacts; take initiatives to increase responsibility for the environment; promote the development and dissemination of environmentally friendly technologies.

4) In the area of fight against corruption: to resist all forms of corruption, including extortion and bribery.

In view of joining to the UN Global Compact, the Company annually publishes Progress Report, which it posts on https://www. unglobalcompact.org/ and on the corporate website https://www.samruk-energy.kz/ru/navigation-and-support/ sustainable-development#tab13