Climate change

Our climate strategy

Being the  largest telecommunications company of the country, Kazakhtelecom JSC supports Kazakhstan’s participation in global initiatives to reduce greenhouse gas emissions. The Company strives to contribute to climate change mitigation and fulfilment of the Paris Climate Agreement. Our ESG Strategy, improved in the reporting period, sets out the priority areas in which we strive to be  leaders, including in combating climate change.

Transition to  low-carbon development is a strategic priority for Kazakhtelecom JSC. The Company has developed and is implementing the Low Carbon Development Programme for 2022–2032.

The Company is working to reduce greenhouse gas emissions and is implementing efficiency measures that save energy. We are taking steps to make our Company more resilient in the face of more extreme climate conditions that could otherwise prove costly. We drive revenue growth through innovative products and services that help our millions of customers reduce greenhouse gas emissions and be more energy efficient.

The Company plans to promote projects and new technologies (including IoT) that contribute to reducing carbon footprint and improving energy efficiency. The Company will facilitate the development and promotion of a wide range of digital and telecommunications services and products that will positively impact the intensity and rate of reduction of greenhouse gas emissions by our customers and the economy of the Republic of Kazakhstan as a whole. As part of the development of the RES market in Kazakhstan, the Company will endeavour to procure alternative energy and switch to environmentally friendly fuels.

To increase openness and transparency in  low-carbon development, the Company plans to prepare annual climate reporting within the international platform Carbon Disclosure Project (CDP).

Our goals

The strategic goal of Kazakhtelecom JSC is to reduce GHG emissions by 13% by 2032 as compared to the base 2021. As a  long-term goal, the Company aims to achieve carbon neutrality by 2060, taking into account the objective set by the President of the Republic of Kazakhstan on decarbonisation of the national economy.

Climate risk management

The Company plans improving the corporate system in terms of climate risk management by way of:

• Identification of climate risks and opportunities in accordance with TCFD Recommendations (Recommendations on Climate Change-related Financial Disclosures) and development of a methodological approach for identifying climate risks and opportunities.
• Analysis of scenarios related to climate change in  line with TCFD recommendations.
• Development of a plan to adapt to the identified physical climate risks.
• Appointment of a person responsible for climate risk management at the  level of the highest executive body.

More on this in our next reports.

Greenhouse gas emissions

The Company implements measures aimed at reducing greenhouse gas emissions in accordance with the following internal documents:

• Kazakhtelecom JSC’s Low Carbon Development Programme for 2022–2032.
• Guidelines for monitoring and reporting on greenhouse gas emissions and energy flows.

In 2023, the Company continued to implement measures to reduce its carbon footprint. In 2023, the Company’s branches “Association Division Network” and “Information Technologies Division” reduced the consumption of purchased electricity in the amount of 1,201.303 MWh. However, in 2023, there is an increase in fuel consumption for stationary emission sources (boiler houses) and purchased heat. The reason for the growth was weather conditions: the amount of precipitation and days with minus temperature.

Greenhouse gas emissions, tonnes СО₂-equivalent

Note to the table: due to changes in the energy supply system in Kazakhstan (introduction of the Unified Power Purchaser from 1 July 2023), companies can only apply the  location-based method to calculate indirect energy emissions of GHG Scope 2. To use the  location-based method, national coefficients determined by benchmarks are used. Accordingly, the Company has calculated the volume for 2023 in accordance with the new methodology. Important: the change in the calculation approach affected only emissions from purchased electricity, emissions from purchased heat are calculated as usual, without changes.

The Company has no GHG emissions from biomass combustion and decomposition. Scope 1 GHG emissions were calculated based on IPCC guidance using individual fuel density indicators. Scope 2 GHG emissions were calculated based on the approved  list of benchmarks in regulated sectors of the economy. The Company has no biogenic impact on the environment.

At the end of 2023, the total volume of greenhouse gas emissions of Kazakhtelecom JSC under Scopes 1 and 2 amounted to 234,853.03 tonnes of СО₂-eq., The volume of direct (Scope 1) and indirect energy emissions (Scope 2) changed by +17.6% and -1.8%, respectively.

Reduction of greenhouse gas emissions through implementation of energy saving programmes, tonnes СО₂-equivalent

Dynamics of carbon intensity, tonnes of СО₂-equivalent /million KZT

Plans for 2024 and the medium term

1. Improved climate risk management system, including:
   • Analysis and assessment of climate risks and opportunities; a plan to adapt to identified physical climate risks; analysis of scenarios related to climate change in accordance with TCFD recommendations.
   • Better integration of climate risks into the Company’s corporate risk management system.
   • Appointment of a responsible person at the Management position  level.
   • Preparation of climate risk reporting in accordance with TCFD Recommendations.
2. In 2024, it is planned to implement measures on the use of  low-carbon energy sources as a substitute for the share of fossil fuels:
   • Implementation of Kazakhtelecom JSC’s LCDP measures for 2022–2032.
   • Revise the  low-carbon development programme to achieve the 13% indicator.
   • Reduce fossil fuel consumption at stationary and mobile sources.