SUSTAINABLE DEVELOPMENT MANAGEMENT
The principles of sustainable development are implemented in the context of three levels:
1. Strategic integration – the principles of sustainable development are incorporated into the Strategy (for more details, see the “Strategy” section);
2. Operational integration – all corporate decisions are made by the Company’s management based on the criteria of compliance with the principles and goals of sustainable development;
3. Cultural integration is implemented as part of conducting training at the Company, posting articles on the corporate portal of the Company, as well as within the Code of Conduct (for more details, see the section “Social Aspect”).
You may learn more about key trends and risks in the field of sustainable development of the Company at the link https:// www.samruk-energy.kz/ru/shareholders-and-investors/ annual-reports-on-the-results-of-the-company-s-activities.
“Samruk-Energy” JSC, integrating the principles of sustainable development in its business, declares its commitment to the 17 Sustainable Development Goals. The company is aware that the environmental and social issues that reflect each of the SDGs are relevant and affect any organization.
“Samruk-Energy” JSC, in its operations, seeks to contribute to the achievement of the following UN sustainable development goals:
Goal 1: End poverty in all its forms everywhere.
Goal 2: End hunger, achieve food security and improve nutrition, and promote sustainable agriculture.
According to data from UN, the number of people living in extreme poverty has declined globally, from 36 % in 1990 to 10 % in 2015, the crisis resulted in COVID-19 risks reducing to zero the decades of progress in the fight against poverty. “Samruk-Energy” JSC group of companies strives to preserve jobs and index wages (according to the results of 2020, indexation averaged 7.5 %). In 2020, the average salary of employees in the Company’s group increased in relation to the same indicator by 12 % (for more details, see the section “Social aspect”).
The company seeks to ensure uninterrupted power supply to all regions where it operates, including in remote areas and settlements, for the possibility of sustainable farm management by local population.
“Samruk-Energy” JSC, being a socially responsible company, strives to pay attention to the social well-being of the regions where subsidiaries are located. An active cooperation with “Samruk-Kazyna Trust” Corporate Fund on the possibility of obtaining support and implementing charity programs in the regions of subsidiaries’ location has started in 2019.
In 2020, the Company worked on identifying relevant existing social issues. Following the works performed, applications for receiving social assistance were submitted to “SamrukKazyna Trust” Corporate Fund. In particular, because of active work with local executive bodies “Samruk-Energy” JSC subsidiaries (“APP” JSC, “Samruk-Green Energy” LLP, “Ekibastuz SDPP-1” LLP, “FWPP” LLP) identified a list of acute social issues in the regions where they operate, as well as a list of non-profit organizations that can initiate and implement projects to address these issues.
Every year the Company implements several social initiatives to help people with disabilities, the poor, retired employees, and patients suffering from cancer (for more details, see “Social aspect” section)
Goal 4: Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all.
The specific nature of power industry requires constant continuous training and reskilling for admission to work and maintaining a high level of expertise. “SamrukEnergy” JSC group of companies strives to constantly develop and train employees. Staff training and development is a key success factor in ensuring economical, troublefree and efficient operation of equipment and the company as a whole. “Samruk-Energy” JSC cooperates with leading domestic universities, certification of personnel according to internationally recognized training programs remains one of the priority areas in training (for more details, see “Social aspect” section)
Goal 5: Achieve gender equality and empower all women and girls.
Goal 10: Reduce inequality within and among countries.
“Samruk-Energy” JSC supports 7 Principles for the Empowerment of Women developed as part of UN-Women partnership and the United Nations Global Compact. This document assumes a commitment to the principles of gender equality as a key element of sustainable development, as well as a conviction that companies that provide women and men with equal opportunities are more successful and achieve better results.
The COVID-19 pandemic and imposing of quarantine measures have changed the lifestyle and work of “Samruk-Energy” JSC group of companies. The scheduled round tables on promoting equal opportunities with students of Almaty University of Energy and Communications named after Gumarbek Daukeev and the SUE “Almaty State College of Energy and Electronic Technologies” were postponed until improvement of the country’s sanitary and epidemiological situation as a whole.
At the same time, the European Bank for Reconstruction and Development (EBRD) launched the Program for supporting renewable energy sources and promotion of gender equality in Kazakhstan in August 2020. The program aims to promote the economic opportunities of women in the renewable energy sector (RES) of Kazakhstan, in close cooperation with the Government of the Republic of Kazakhstan, renewable energy sector enterprises. As part of the EBRD Program for supporting renewable energy sources (RES) and promotion of gender equality in Kazakhstan, subsidiaries of RES sector of “Samruk-Energy” JSC group of companies participated at the meeting; the meeting will contribute to the preparation of the report on results of basic assessment of women employment and entrepreneurship in RES. The roadmap for increasing the participation of women in Kazakhstan’s RES sector will be developed in 2021 based on the report. Reducing inequality and ensuring that no one is left behind is an integral part of sustainable development goals accomplishment.
Goal 7: Ensure access to affordable, reliable, sustainable, and modern energy for all.
The company makes every effort to ensure that energy becomes more sustainable and affordable, paying close attention to the development of “clean” energy (RES).
“Samruk-Energy” JSC energy producing organizations’ electricity output in 2020 amounted to 31,385 bn kWh. Electricity generation by “Samruk-Energy” JSC RE facilities (SPP, WPP, small HPP) in January-December 2020 amounted to 335.8 mln kWh.
In 2020, “Samruk-Energy” JSC group of companies started the implementation of two new RE projects – wind power plants in Almaty and Akmola regions: the construction of 60 MW wind power plant in Shelek corridor with possible increase in capacity up to 300 MW in Enbekshikazakh district of Almaty region and 50 MW wind power plant located in the vicinity of Ereymentau city of Akmola region.
Along with that, “Samruk-Energy” JSC accomplished Shardarinsk HPP complete retrofit program. Large-scale reconstruction that aimed at replacement of all four hydroelectric units enabled to increase the capacity of the HPP from 100 to 126 MW. The new equipment will increase the service life of the hydropower plant to 35–40 years, increase the reliability of the hydropower plant and reduce the accident rate.
In 2020, 5 MW Shelek wind power plant was commissioned in Almaty region, implemented under the intergovernmental agreement between the PRC and the Republic of Kazakhstan. The design capacity of the plant is 5 MW, the average annual output is about 15 mln kWh of electricity.
Goal 8: Promote sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all.
“Samruk-Energy” JSC is one of major employers in the Republic of Kazakhstan. As of December 31, 2020, the headcount of “Samruk-Energy” JSC group of companies amounted to 17,783 people.
The share of full-time employees in the reporting period was 100 %. The ratio of the minimum wage for women to the minimum wage for men is 100 % (to learn more about this, visit “Financial and Economic Reporting” and “Social Aspect” sections).
Goal 9: Build resilient infrastructure, promote inclusive and sustainable industrialization, and foster innovation.
Inclusive and sustainable industrialization, along with innovation, play an essential role in deployment and promotion of new technologies, facilitating international trade and ensuring the efficient use of resources.
“Samruk-Energy” JSC implements a number of projects:
- Project SKE.03.01P “Introduction of automatic load and frequency control”
- “Business Loss Analysis Using Data Analytics” Project.
- Project “Implementation of a pilot automated medical examination system”
The research work “Development of technology of furnace devices of boiler units for firing high-ash coal from seam No. 3 of Ekibastuz coal deposit and depleted coal by-products” was carried out.
A joint research laboratory “Clean Coal Technologies” was established on the territory of PI “Nazarbayev University Research and Innovation System”
Goal 16. Promote peaceful and inclusive societies for sustainable development, provide access to justice for all, and build effective, accountable, and inclusive institutions at all levels.
The company adheres to high standards of business ethics, transparency, and legality, independent from business customs and other business practices in a particular jurisdiction. (to learn more, visit “Compliance” and “Stakeholders engagement” sections).
