Sustainable development management structure

GRI 2-12, 2-14

The Company is continuously working to improve its approach to sustainable development management. In Kazakhtelecom JSC, sustainable development issues are integrated at all levels of management. The Company’s Board of Directors pays special attention to this subject, considering it as a strategic priority. The Board of Directors is the body approving and controlling the implementation of the Company’s Development Strategy, which integrates the Company’s sustainable development principles and objectives.

The Board of Directors:

determines the Company’s strategy and main areas of sustainable development activities;
reviews and approves sustainable development reporting;
controls the implementation of sustainable development principles in the Company’s operations;
manages sustainable development risk issues, including climate risks.

The Board of Directors receives reports on the performance results in sustainable development on a regular basis (annual, quarterly).

Until 2022, the HR, Remuneration and Social Affairs Committee of Kazakhtelecom JSC was responsible for sustainable development management at the level the Board of Directors of Committees. Within the framework of development and strengthening of the Company’s ESG practices, in July 2022 the Audit Committee was renamed into the Audit and Sustainable Development Committee.

The Committee’s functions to control the Company activities in the field of sustainable development include:

pre-approving the Company’s annual report for the quality of the non-financial information provided;
developing recommendations to the Board of Directors on topics related to sustainable development, as well as on the implementation of ESG and low-carbon development principles in the Company;
supervising the transformation of business processes to reflect the principles of sustainable development, ethical behaviour and responsible investment;
developing recommendations to the Board of Directors on the approval of new and performance evaluation of the Company’s existing sustainability policies, plans and programmes, as well as the Company’s priority projects, key activities and initiatives in the area of sustainable development;
considering issues of low-carbon development and management of the Company’s carbon footprint, including potential risks and restrictions arising for the Company related to the global climate agenda;
developing recommendations to the Board of Directors on the compliance of the Company’s activities, corporate reporting and documents with the requirements of international sustainability ratings, as well as monitoring the implementation of measures to improve the Company’s position in international sustainability ratings;
monitoring the quality of the Company’s public reporting on sustainable development.

GRI 2-13

The Corporate Governance and Sustainable Development Department manages sustainable development issues. The Department regularly conducts an inventory of the Company’s internal regulatory documents, policies, practices and internal controls. In addition, we constantly work to identify sustainability risks and take measures to manage them. The Corporate Governance and Sustainable Development Department regularly (at least semi-annually) submits issues related to the Company’s sustainable development activities to the Audit and Sustainable Development Committee for consideration, namely, approval of developed internal documents, provision of information on sustainable development performance, etc.

Chairman of the Management Board and the General Directors of the affiliated branches control, implement and introduce sustainable development principles, policies, standards and provide reliable information according to the Company’s action plan. The Managing Director of Kazakhtelecom JSC supervising sustainable development ensures coordination of approaches of the Company’s activity to achieve the goals and KPIs. The Compliance Controller/ Head of the Compliance Service regulates the procedure of internal communications with regard to ethical standards. The Head of the Communications Department is responsible for external communications with the public.

Kazakhtelecom JSC’s structural subdivisions responsible for human resources, occupational health and safety, environmental protection, supervise certain issues in the field of sustainable development, are responsible for initiation, coordination and implementation of the sustainable development management system and achievement of the Company’s sustainable development goals. Kazakhtelecom Central Administration bears direct responsibility and control over the implementation of initiatives of the Company’s structural units.

Roadmap for Kazakhtelecom JSC’s ESG practices development

Kazakhtelecom JSC pays great attention to the development of ESG practices. In February 2023, the Board of Directors approved the Roadmap for the development of Kazakhtelecom JSC’s ESG practices, including 108 measures on the environment, social balance and corporate governance.

As part of the Roadmap for ESG practices development, Kazakhtelecom JSC implemented the following:

climate change disclosure;
obtaining an independent ESG assessment from S&P Global;
assessing the current level of biodiversity in the Company’s area of operations;
increasing the share of women on the Management Board – 33.3% in 2023.