Sustainable development


Since 2013, the Company has published a Sustainable Development Report prepared in accordance with the GRI Guidelines. 

In 2021, diagnostics of the company's ESG system began and a Roadmap of recommendations was developed to improve the company's ESG system and increase positions in ESG ratings, a Comprehensive Plan for improving the ESG system of QazaqGaz NC JSC for 2022–2025 was approved. In its activities QazaqGaz consistently adheres to high ESG principles and corporate governance standards. 

To comply with these principles, the Company intends to apply international best practices in doing business, protecting the environment, ensuring safe working conditions, and developing human capital.

Sustainability management structure

GRI 2-9, GRI 2-12, GRI 2-13, GRI 2-14

The Company aims to enhance its sustainable development management and acknowledges the crucial influence of sustainable development principles and values on NC QazaqGaz JSC operations. Therefore, the Company demonstrates its dedication to sustainable development principles throughout all management levels.

The Board of Directors is responsible for creating and implementing a sustainable development system at all levels, including reporting on sustainable development in the Integrated Annual Report of NC QazaqGaz JSC. They actively manage issues related to sustainable development and interact with stakeholders.

In 2022, based on the results of work in the field of sustainable development, the Board of Directors reviewed the Company's Development Strategy for 2022-2032, as well as approved key internal regulatory documents on aspects of sustainable development ("Sustainability Policy", "Environmental Policy", "Health, Labor and Occupational Safety Policy", etc.). In addition, in the reporting year, the Board of Directors identified key areas in the field of sustainable development in accordance with the adopted "Comprehensive Plan to improve the ESG system of NC QazaqGaz JSC for the period of 2022-2025".

At the executive level, the Management Board oversees strategic development initiatives, programs, and activities, monitors the achievement of goals and KPIs in sustainable development, and approves material topics for the preparation of non-financial reports of NC QazaqGaz JSC.

An ESG project office has been formed for the purpose of implementing, monitoring and executing the activities of NC QazaqGaz JSC to implement the Company’s strategy in the field of sustainable development, including the development of a Low-Carbon Development Program. The composition of the Project Office is approved by order of the Chairman of the Board of NC QazaqGaz JSC. Chairman of the Project Office - Deputy Chairman of the Board for Strategy and Investment. The project office includes employees of NC QazaqGaz JSC and its subsidiaries and affiliates. The Chairman of the Project Office organizes the work of the Project Office, approves the meeting date, agenda and topic of the meeting, presides over meetings of the Project Office, and exercises general control over the implementation of decisions made by the Project Office. During the reporting period, issues of the formation of the Low-Carbon Development Program, the implementation of the Roadmap for improving ESG, preparation for obtaining an ESG rating, etc. were considered.

At the operational level, the Department of strategy and sustainable development oversees sustainability management issues. The department regularly analyses internal regulations, practices and the internal control system and promotes the implementation of practices and the Company's sustainable development principles for timely updating and identification of areas for improvement.

Management of certain sustainable development issues is carried out by structural subdivisions of NC QazaqGaz JSC. Thus, the Company has the HSE (health, safety & environment) department, which is responsible for occupational health and safety management, the human resources management and remuneration department, which is responsible for social and personnel management, and the production and technical department, which is responsible for environmental management. Each structural unit plays an important role, within its remit, in coordinating the management of sustainable development practices and in realizing the Company's contribution to the UN SDGs.

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

>NC QazaqGaz JSC recognizes the importance of all 17 UN Sustainable Development Goals and, as part of its activities, makes a significant contribution to their achievement. Due to the specifics of its activities, as well as in accordance with the mission, business profile and goals of the Company, NC QazaqGaz JSC has identified seven priority UN SDGs, to the achievement of which the Company makes the most significant contribution

goal

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

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

Take urgent action to combat climate change and its impacts

goal

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

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


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: l.agimbetova@qg.kz

Approved complex ESG plan for 2022 - 2025 years.pdf

QazaqGaz_ESG_Data _Book_14.09.2023_final_ENG.xlsx

Rules for creating an integrated annual report QG.docx

Regulations on the Committee for Strategy.doc

Sust Policy.docx