Sustainable development


QazaqGaz consistently implements sustainable development principles across all stages of its operations, contributing to the cultivation of a responsible business culture in the Republic of Kazakhstan. The Company has adopted a comprehensive Sustainability Policy aimed at integrating ESG principles into strategic planning, corporate governance, and operational activities, taking into account the interests of all stakeholders and in line with international standards.

This approach is embedded in internal regulations that ensure consistency and coherence in achieving the Company’s sustainable development goals.

ESG Rating

JSC “NC “QazaqGaz” consistently develops its sustainable development management system and non-financial information disclosure. Based on the results of 2024, the international agency MSCI assigned the Company a rating of “A,” reflecting the reliability of corporate governance and the effectiveness of ESG risk management. In addition, within the framework of the CDP Climate Program, JSC “NC “QazaqGaz” improved its performance and moved up three levels, receiving a “B” rating.

JSC NC QazaqGaz also joined the UN Global Compact in 2024, the world's largest corporate sustainability and social responsibility initiative. "Joining the UN Global Compact is an important milestone for our company. It strengthens our reputation and confirms the company's commitment to high standards of corporate, social and environmental responsibility. We are pleased to become part of a global community that shares our values, and we hope that our participation will contribute to positive changes. 

Since 2013, QazaqGaz has been publishing sustainability reports in accordance with GRI standards. The number of independently assured indicators increases every year. Thus, within the framework of the Integrated Annual Report for 2024, 50 non-financial indicators were independently assured — 72% more than in 2023 (29).

In 2021, QazaqGaz began diagnosing its ESG system and developed a Roadmap of recommendations for improving it and increasing its position in ESG ratings. The Comprehensive Plan for Improving the ESG System for 2022–2025 was approved. QazaqGaz consistently adheres to high ESG principles and corporate governance standards. The company intends to apply international best practices in doing business, protecting the environment, ensuring safe working conditions and developing human capital.

In 2024, JSC “NC “QazaqGaz” also joined the UN Global Compact, the world’s largest corporate sustainability and social responsibility initiative. Joining the UN Global Compact is an important milestone for our company. It strengthens our reputation and reaffirms the Company’s commitment to high standards of corporate, social, and environmental responsibility. We are pleased to become part of a global community that shares our values, and we hope that our participation will contribute to positive change.


Sustainability management structure

GRI 2-12, GRI 2-13, GRI 2-17

Sustainability issues are integrated into all levels of management and internal business processes at QazaqGaz. The coordinated work - from strategic planning to operational execution - supports the effective implementation of sustainability initiatives, the achievement of strategic ESG goals, and enhances the Company’s contribution to the UN Sustainable Development Goals (hereinafter - UN SDGs, ESG goals).

The Board of Directors provides strategic guidance in the field of sustainability. Its key responsibilities include:

approving key performance Indicators in the area of sustainability and monitoring their implementation;

approving strategic documents, key directions in sustainability, and public non-financial reporting;

reviewing the results of ESG initiative implementation and stakeholder engagement;

overseeing the implementation of the “Comprehensive Plan for Enhancing the ESG System of JSC “NC “QazaqGaz” for 2022–2025”

The Strategy and Sustainability Committee is a specialized body under the Board of Directors that supervises the implementation of the ESG agenda, including:

preparing recommendations for the Board of Directors on the approval of key documents and strategic directions;

participating in the development of the sustainability management system and defining related goals and key performance Indicators;

supporting the integration of sustainability principles into corporate processes.

The Committee also conducts regular monitoring of the implementation of the ESG Strategy and objectives.

The QazaqGaz Board deals with the development of an action plan for the implementation of the Strategy, as well as programs and initiatives in the field of sustainable development. The Board members approve the list of material topics for non-financial reporting and ensure the achievement of established ESG goals and KPIs. 

To coordinate the efforts of all company divisions, there is a ESG Project Office within the Company, led by the Deputy Chairman of the Board for Strategy and Investments. The office includes employees from the head company and subsidiaries of QazaqGaz. The Project Office is responsible for supporting the execution of ESG initiatives, including the Low-Carbon Development Program, overseeing the implementation of the ESG improvement Roadmap, and ensuring the Company’s preparation for ESG rating.

Structural units are responsible for implementing ESG initiatives at the operational level. The Strategy and Sustainable Development Department coordinates operational ESG processes, analyzes the effectiveness of practices, identifies areas for improvement, and facilitates the updating of ESG policies and internal documents.

The management of specific aspects of sustainable development is carried out by specialized units:

The HSE Service1 ensures compliance with occupational health and safety, industrial safety, and environmental protection requirements;

The Human Resources and Payroll Department oversees social policy, employee engagement, and their well-being;

The Production and Technical Department is responsible for implementing environmental initiatives;

The Compliance Service and Corporate Secretary monitor adherence to corporate governance standards and business ethics.

Each structural unit of the head company and subsidiaries participates in achieving the Company’s ESG goals within their respective competencies.

Science and innovation

QazaqGaz pays special attention to the introduction of new technologies and modern approaches to improve production efficiency and ensure sustainable development of the Company. The Company is carrying out large-scale work on the construction of new production facilities, expansion and modernization of existing facilities, and is also planning new investment projects to provide the population of Kazakhstan with gas. The introduction of modern information and communication technologies and production automation are an integral part of this process.

In March 2023, the QazaqGaz Scientific and Technical Center began operating.

The main goal of the STC is the transfer and implementation of the latest techniques and technologies to solve production problems.

The second direction is the professional development program.

The third direction is the commercialization of Kazakh science and the introduction of the latest scientific developments into the gas industry.

STC negotiates with technology partners, establishes cooperation with leading R&D centers; is working to attract leading technical universities in Kazakhstan and abroad, and international gas companies. Among the transnational companies that are showing interest are Gazprom, Sibur, SOCAR, CNPC. It is this three-way interaction that is the fundamental principle of the STC’s work. In 2022, memorandums of understanding were signed with the rectors of Satbayev University and KBTU. Such cooperation will help implement joint scientific projects with the help of grants and program-targeted funding. Research and development centers are interested in targeted R&D. Thus, at Satbayev University they are working on the issue of determining the reliable residual life of pipelines using automated algorithms. The results are tested at QazaqGaz facilities and subsequently submitted for grant funding. Work is underway with the Almaty University of Energy and Communications named after Gumarbek Daukeev (AUES), the Kazakh-British Technical University, Nazarbayev University, where the work is aimed at interacting with the laboratories of the NURIS technology park, and other regional universities. STC has formed a production program for scientific and analytical problem solving, where priority attention is paid to identifying unconventional gas sources, increasing gas storage volumes (UGS), ensuring the service life and productivity of equipment, improving the quality of equipment diagnostics, and proactively identifying and eliminating production risks. An important issue is minimizing the negative impact on the environment and analyzing technologies for unconventional gas storage. The memorandum with KBTU is interesting from the perspective of accumulated experience in the field of research into internal corrosion of pipelines. As part of research activities, it is planned to involve the potential of regional universities in terms of hydrodynamic modeling, expanding the resource base and improving the quality of diagnostics. With AUIS it is planned to apply the best practices of electrochemical protection (ECP). Work is underway with Satbayev University to study unconventional gas sources - coal bed methane (CBM) and synthesis gas. In terms of CBM, the activities of the Scientific and Technical Center use the positive experience of working in the Karaganda coal basin. A separate topic of discussion is the issues of internal and external standardization of the QazaqGaz NC JSC group of companies / technical regulation, where the STC can act as the leading R&D center. There are many examples of the success of similar enterprises in the world - Gazprom VNIIGaz, Det Norske Veritas, ASTM, ASME, IPA and other institutes. Conceptually, the STC will become an ecosystem of scientific and advanced engineering solutions aimed at finding innovative solutions for the strategic, technological and economic needs of the company. In the future, it will play the role of a catalyst for the development and adaptation of best practices in scientific and scientific-technical activities through the expansion of international cooperation, as well as its strengthening through interaction with technological partners of NC QazaqGaz JSC and collaboration with technological universities to exchange experience and apply technological innovations in subsidiaries and affiliates.

United Nations (UN SDGs) Priority Sustainable Development Goals of the Organization

By implementing environmental and social initiatives, QazaqGaz contributes to the achievement of the UN Sustainable Development Goals, as well as national priorities defined in the “Kazakhstan-2030” Strategy and other long-term national development strategic documents.

goal

Ensure healthy lives and promote well-being for all at all ages

goal

Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all

goal

Achieving gender equality and empowering of all women and girls in Company

goal

Ensure access to affordable, reliable, sustainable, and modern energy for all

goal

Promote sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all

goal

Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation

goal

Reduce inequality within and among countries

goal

Make cities and human settlements inclusive, safe, resilient, and sustainable

goal

Take urgent action to combat climate change and its impacts

goal

Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, halt and reverse land degradation and halt the loss of biological diversity

goal

Promote peaceful and inclusive societies for sustainable development, provide access to justice for all, and build effective, accountable, and inclusive institutions at all levels

goal

Strengthen the means of implementation and revitalize the Global Partnership for Sustainable Development


OECD Green Growth Framework

Over the past decades, most developed and developing countries have prioritized sustainable economic growth, expanding capacity to use resources, and reducing environmental impacts. The concept of green growth, which aims to achieve sustainable growth through the efficient and responsible use of natural resources, has become an integral part of economic policy for numerous governments since its introduction in the late 2000s (Organization for Economic Co-operation and Development or OECD, 2009. ).

QazaqGaz is committed to the concept of sustainable development and high standards of corporate responsibility. The goal of QazaqGaz is to develop business according to the best international standards, commitment to environmental protection, guaranteeing safe and healthy working conditions and ensuring a positive contribution to the development of the regions of presence.

On 9 March 2022, the European Commission adopted the Complementary Climate Delegated Act, which included, under strict conditions, certain nuclear and gas energy activities in the list of economic activities covered by the EU Green Taxonomy system .

Natural gas will play a key role in Kazakhstan's energy transition:

Transition fuel - replacing coal with gas can play a key role in decarbonizing the economy, reducing CO2 emissions and reducing the carbon footprint by 10-20% by 2050.

Launching the Hydrogen Economy – With low-cost natural gas, Kazakhstan has the potential to produce low-cost hydrogen for local decarbonization and export to other countries.

Balancing generation - renewable energy sources will play a large role in replacing coal due to the rapid increase in capacity, which will require additional volumes of commercial gas.

Stakeholders

Interaction with stakeholders is based on the principles of cooperation, reasonable trust, integrity, legality, transparency and expanded information interaction. The Company has a wide range of stakeholders who are influenced by the activities of QazaqGaz, and who in turn can influence the achievement of goals.

The Company has approved a Stakeholder Map, compiled taking into account risks and ranking, taking into account dependence, obligations, and influence.

Feedback and comments on events and initiatives in the field of sustainable development, as well as interactions on them, can be sent to: s.samekina@qg.kz, s.nurpeisova@qg.kz, t.bostan@qg.kz

Approved complex ESG plan for 2022 - 2025 years.pdf

QazaqGaz ESG DataBook YE 2024

Rules for Preparing the Integrated Annual Report of QazaqGaz NC JSC

Regulations on the Committee for Strategy

Sustainable Policy

Integrated Report 2024