“Social”
category

The Company recognizing the social responsibility of business, in order to ensure maximum benefits to society from its operations, accepts voluntary commitments for the responsible participation in the lives of the Company’s employees, the population in the regions where the Company operates and society as a whole.

Human resources management is one of the priority areas in the Company’s business and human resources are managed on the basis of the Personnel Policy of “SamrukEnergy” JSC for 2018–2028.

Personnel Policy’s mission

To pool efforts of human resources for the achievement of strategic goals of the Company in the long term and providing a competitive advantage in the market.

Personnel Policy’s vision

A single effective corporate culture aligned to the values of each employee, which contributes to the growth of human potential and dynamic sustainable business development.

The strategic role of the HR function is expressed primarily in the planning of labor resources for the future in quantitative and qualitative terms.

The Company pays special attention to managing the planning and providing labor resources by managing the organizational structure and number of employees, managing the quality and competences system, and recruiting and selecting personnel.

“Samruk-Energy” JSC is one of the largest employers in the Republic of Kazakhstan. As of December 31, 2020, the Company’s headcount amounted to 17,783 people.

“Samruk-Energy” JSC group’s personnel structure has remained stable over the past years. The average length of service of employees – 12 years.

The company strictly complies with existing legislation, in the event of other significant changes related to activities, including in the event of termination of the employment contract, it notifies employees in writing at least one month in advance.

The share of full-time employees in the reporting period was 100 %. The share of top managers in significant regions of operation, hired from among the representatives of the local population, reached 100% in the reporting period

Staff profile

In connection with the production specifics of the Company’s operations, male employees are involved in the main production areas, whose share of the total staff in 2020 was 74 %.

“Samruk-Energy” JSC supports 7 Principles for the Empowerment of Women, developed through a partnership between UN-Women and the United Nations Global Compact, was signed. This document assumes adherence to the principles of gender equality as a key element of sustainable development, as well as the conviction that companies that provide women and men with equal opportunities are more successful and achieve better results. To achieve this goal, the Company has adopted the Action Plan.

During the reporting period, 272 employees were granted parental leave across “Samruk-Energy” JSC group. Of these, 252 are women and 20 are men. In the reporting year, 172 employees continued their work, including 163 women and 9 men.

In 2020, the employee turnover rate was 6 %. The main reasons are the prospect of getting a higher salary elsewhere and the lack of career and professional development and training.

Because of specifics of its operations, “Samruk-Energy” JSC has no risk of using child and forced labor, as well as performance of hazardous work by young employees.

Safety and labor protection

The company, guided by the principles of sustainable development, pursues a policy to reduce industrial injuries and improve working conditions for employees.

In accordance with the Action Plan for the management of health and safety issues in the Company’s group for 2020 and the Company’s Health and Safety Policy, all subsidiaries and dependent companies have developed and approved labor protection work plans, carried out a set of organizational and preventive measures.

To provide employees with security assurances, the Company will continue to develop its social protection program (medical insurance, life insurance, pension provisions, accident insurance, etc.), improve working and living conditions.

As required by law, the Company also pays sick leave, medical insurance, insurance of an employee against accidents when performing job responsibilities, annual medical examination of employees and financial assistance in case of workplace injury. In line with p. 2 of article 17 of the Republic of Kazakhsan Law “On compulsory insurance of an employee against accidents when performing job responsibilities”, “Samruk-Energy” JSC group of companies concludes life and health insurance contracts for employees engaged in high injury rate jobs.

Throughout the group of companies, in accordance with Article 203 of the Labor Code of the Republic of Kazakhstan, there are production councils (formerly committees) for labor safety and protection. It consists of representatives of the employer, representatives of workers, including technical inspectors for labor protection on a parity basis.

The international standard “Occupational Health and Safety Management System OHSAS-18001” has been introduced.

All subsidiaries and affiliates of the Company have certified their workplaces for working conditions. In accordance with the certification of workplaces, workplaces with harmful and hazardous working conditions have been identified. At the same time, all employees are provided with appropriate benefits, including personal protective equipment and overalls in accordance with the legislation of the Republic of Kazakhstan.

In accordance with article 185 of the Labor Code of the Republic of Kazakhstan, workers employed in jobs associated with increased danger, machines and mechanisms, undergo pre-shift and post-shift medical examination.

On a regular basis, “Samruk-Energy” JSC group of companies carries out vaccinations for its employees, and also uses other forms of maintaining immunity in order to prevent diseases.

The Company has introduced the practice of conducting planned and unscheduled (sudden) inspections to comply with the requirements of international standards, regulatory legal acts of the Republic of Kazakhstan, internal regulatory documents of the Company in the field of occupational safety and health. During the reporting period, 9 scheduled inspections, 3 unscheduled (sudden inspections) were carried out.

Registration, the procedure for reporting and accounting of industrial accidents was carried out in accordance with Chapter 20 of the Labor Code of the Republic of Kazakhstan “Investigation and accounting of work related accidents” and other regulatory legal acts of the Republic of Kazakhstan. In accordance with the corporate standard “Incident accounting and investigation”, the practice of conducting internal investigations of accidents has been introduced in order to determine the root (system) causes.

In accordance with the above corporate standard, investigations of incidents that did not lead to accidents are conducted.

Despite the large number of preventive and corrective measures implemented, 8 accidents related to work were registered in 2020: 7 of them were with a severe outcome, 1 with an easy outcome.

Fire safety

All entities that are part of “Samruk-Energy” JSC group of companies are provided with primary fire extinguishing equipment: portable and mobile fire extinguishers, equipped with fire hydrants, provided with boxes with powder composition (sand), as well as fire-resistant fabrics (felt, etc.).

Supervisory government bodies, employees representatives of “Samruk-Energy” JSC, as well as labor protection specialists of an enterprise monitor the availability of fire-fighting equipment during scheduled and unscheduled inspections.

In 2020, 1 case of fire was recorded at the facilities of enterprises belonging to “Samruk-Energy” JSC group of companies. On June 25, 2020, at “Ekibastuz GRES-1” LLP, during hot work inside the cabin of the overhead crane, glowing particles of welding hail hit the combustible polymer heaters, which resulted in the ignition of the insulation of the overhead crane cabin. Reason: Failure to comply with fire safety measures in the production of welding and other hot work. There are no casualties.

Measures taken to avoid accidents at work

The following measures are taken in order to reduce workplace injury rate across “Samruk-Energy” JSC group of companies:

• All employees are informed about circumstances and causes of accidents.
• All production personnel receive unplanned instructions (in case of accident occurrence)
• Unscheduled test of employees for OR, occupational safety rules knowledge is held at business units at which an accident took place.
• Occupational safety days with participation of CEOs of companies are organized on a monthly basis. Actions aimed at elimination of identified violations are taken according to the results of the occupational safety days.
• Occupational health and safety services organize comprehensive inspections of equipment, buildings, facilities and workplaces. Action plans with deadlines and persons in charge based on results of comprehensive inspections are developed.
• All production personnel are trained according to the Rules for training, instruction, and testing of employees’ knowledge of occupational safety.
• Seminars and meetings with engineers and technicians of structural subdivisions authorized to give assignments, manage and perform works are held prior to the repair campaign; such workshops cover practical trainings on the correct access for teams to perform works and prepare work orders.
• At least once every five years, enterprises undergo assessment of workplaces with respect to working conditions.
• Equipment that exhausted its service life and posing a serious threat to production personnel is replaced according to the schedule.
• The practice of conducting leadership behavioral safety audits is being introduced.
• The maps / registers of risks at workplaces are updated, and additional trainings on identification of hazards and risk assessment for staff are held.

Motivation and remuneration

The company adheres to the following policy of remuneration and motivation:

• setting a minimum guaranteed level of remuneration in the Company for all employees at a level exceeding the legislatively established minimum amount of remuneration, taking into account the need to meet basic living needs and provide a certain income, taking into account local conditions;
• wage indexation based on the consumer price index;
• periodic increase in wages resulting from better performance;
• the use of flexible bonus systems for complete consideration of an individual labor contribution of an employee;
• the objectivity and unity of the system of payment and motivation of workers and its competitiveness at the national level;
• rewarding with corporate and industry awards.

The average salary of employees at “Samruk-Energy” JSC group of companies in 2020 increased in relation to the same indicator by 12 % – from 243,722 tenge to 273,628 tenge. The growth of the average salary of production staff amounted to 14 % – from 225,632 tenge to 256,611 tenge, administrative staff amounted to 4% – from 450,171 tenge to 467,305 tenge.

The minimum wage across the group of companies is 135,526 tenge. The ratio of the minimum wage for women to the minimum wage for men is 100 %. The wage is set based on the salary scheme and the tariff rate.

In order to increase the content of wages and compensate for inflationary processes, as well as in accordance with the concluded Collective Agreements at “Samruk-Energy” JSC group of companies, the indexation of wages was carried out by an average of 7.5 % in 2020.

In order to motivate employees, “Samruk-Energy” JSC, in recognition of merit, develops types of non-material motivation and forms of indirect additional financial remuneration – social protection programs for employees and additional benefits.

The Company, in accordance with the Collective Agreement, provides for: overtime pay, pay for work on holidays and weekends, at night, allowances and surcharges, pay for employees engaged in heavy work, work with harmful (especially harmful), dangerous working conditions, additional paid annual leave, financial assistance in connection with the birth of a child, financial assistance for the wedding and one-time bonus in connection with the anniversary (50, 60 and 70 years). According to the Collective Agreement, upon termination of the employment contract, employees are paid a compensation payment in the amount of 3 wages in connection with retirement.

Employees who combine work with education in educational institutions are also provided with additional leave for the period of examination or adjustment sessions, the preparation and protection of the graduation project (work), and the passing of final exams.

To motivate and encourage employees across “SamrukEnergy” JSC group of companies, the honoring of distinguished employees with state, departmental and industry awards from the CIS Electric Energy Council, Kazakhstan Association of Oil and Gas and Energy Sector Organizations “KAZENERGY”, “Kazakhstan Electricity Association” ALE, “Samruk-Kazyna” JSC, etc was held as part of the corporate culture development.

According to the results of 2020, 22 employees were awarded the badge “Enbek sinirgen energetic”, the Order “Enbek Danky” of III degree, “Kurmet” Order of the RK, “Eren enbegi ushin” medal, “KAZENERGY” medal – 4, the Medal of the MED “Elektr energetika salasyna koskan ulesi ushin”, badge of the RK Ministry of Energy “Kurmetti energetic”, jubilee medal “Kazakhstan Konstitutsiyasyna 25 zhyl”, jubilee medal “Kazakhstan Konstitutsiyasyna 25 zhyl”.

Development and career growth

The specifics of power industry requires constant continuous training and retraining of personnel for admission to work and maintaining a high level of professionalism. “SamrukEnergy” JSC group strives to constantly develop and train employees. Personnel training and development are a key success factor in ensuring economical, trouble-free and efficient operation of the equipment and the company as a whole.

The main directions of staff development of the Company’s group:

• Leadership Development Program;
• Operation of coal-fired boiler / steam turbines of thermal power plants;
• “Project Management”, “Situational Leadership” trainings;
• Master’s programs (BA, Ms);
• Corporate English language and state language courses;
• Seminars, trainings and conferences on the functional orientation of employees’ occupation.

In 2020, employees completed health and safety training for responsible persons; in accordance with the RK Law “On Civil Protection”; they also completed training in workplace safety and basics of fire safety”, “Legislation in the field of energy conservation and energy efficiency”. Energy management in production. Management of energy conservation programs development and implementation. “Energy conservation and energy efficiency improvement”, “The Role of risk management and internal control system in corporate governance” and “Corporate Governance and Sustainable Development ”.

In addition, as part of the implementation of the mandatory Leadership program, 100 % of CEO completed trainings; CEO-1 – 92 %; CEO-2 – 91 %.

For CEO-1, the trainings “People Management”, “Change Management”, “Public Speaking”, “Strategic Management”, “Coaching Skills” and “Digital Skills” were conducted. For  CEO-2, the trainings “People Management”, “Change Management”, “Strategic Management”, “Coaching Skills” and “Digital Skills” were held.

According to the Digital Transformation Program (a roadmap for the Culture of High Performance Initiative), the thresholds for the percentage of executives who completed leadership programs trainings were achieved.

Average hours of training per employee per annum, by category of employees

In line with existing Rules for performance appraisal of the Company’s employees, the following assessment is carried out:

• a comprehensive (final) assessment of goals and competencies, which includes: self-assessment, review meetings, a review of skills, potential, assessment and providing employees with guidelines to improve performance and development opportunities.
• an interim review of employees performance, which is carried out on a quarterly basis, in order to monitor the degree of achievement of goals for the reporting period.

The performance of 94 % of administrative and management staff was evaluated, of which 95 % are men and 94 % are women.

To maintain and unravel competitiveness, proactively respond to external and internal challenges, build the potential of promising, highly professional and involved employees, educate own executive staff, the Company develops a system of succession and talent management.

“Samruk-Energy” JSC group of companies creates a single personnel reserve for occupying key positions and introduces selection and appointment procedures from the talent pool based on the principles of objectivity, transparency and fairness, voluntariness, and efficiency.

The process of formation and development of the personnel reserve is closely integrated with the annual employees’ performance appraisal, based on which a talent map is created and individual development plans (IDP) of succession pool members are prepared, involved mentoring, internship programs and a succession program are developed.

As part of the development of corporate governance, “SamrukEnergy” JSC Board of Directors and company management bodies pay a great deal of attention to the preparation and implementation of a plan for succession to senior positions.

Social stability and development of corporate culture

The annual measurement of indicators of social stability and employee involvement allows taking timely measures on increasing employee loyalty and trust, social welfare, and employee involvement, improving working conditions and processes associated with staff work, developing communication systems and informing about any changes.

In 2020, the methodology for determining the engagement index and social stability rating was updated. The purpose of updating the methodology is to increase the practical significance of results and the value of recommendations to ensure social stability in a team.

In connection with the current epidemiological situation in the Republic of Kazakhstan, in 2020 the study was conducted by telephone survey within Samruk Research Services platform.

According to the research results for 2020, the Social Stability Index across the Company’s group was 79 %*.

* Comparison in dynamics by the SRS indicator will be possible from 2021

The indicator of the survey of administrative and management staff engagement across the Company’s group in 2020 amounted to 83 %, which shows an increase of 2 % compared to 2019*.

* To conduct a comparative analysis with the results of previous years, the engagement index for 2018 and 2019 was recalculated according to the example of the 2020 methodology.

The indicator of the survey of the Company’s (Head office) administrative and management staff in 2020 was 92 % and is in the positive zone. Compared to 2019*, the share of employees involved increased by 4 %.

* To conduct a comparative analysis with the results of previous years, the engagement index for 2018 and 2019 was recalculated according to the example of the 2020 methodology

Conciliation committees are formed and operate in the “Samruk-Energy” JSC group of companies, consisting of representatives from the employer and representatives of trade union workers, whose main function is explanatory work among employees, complaints and appeals consideration procedures.

“Samruk-Energy” JSC group of companies strives to provide a competitive social package, the availability of which allows attracting qualified employees. Compensation and benefits are designed to improve the welfare and level of social protection of employees and their families. The number of social payments and benefits provided to employees of the Company’s Group in accordance with signed collective agreements include:

• financial assistance for health care provided at vacation, for the birth of a child;
• financial assistance for burial (an employee and immediate relatives), for the treatment of retired employees, for emergency situations, etc.
• financial assistance in connection with loss of income (registration of maternity leave or leave due to the adoption of a newborn child);
• voluntary health insurance;
• health resort treatment
• a one-time incentive payment in connection with employees anniversary celebration (50, 60 and 70 years);
• expenses for holding festive, cultural and sports events;
• payment of loans;
• allowance for injury and loss of primary income earner;
• New Year’s gifts to children, etc.

Social guarantees and benefits for 2020 were provided in accordance with the Collective Agreement in the amount of 2,228,698 thous. tenge.

Share of employees under collective bargaining agreement

The Company implements the following activities for health improvement, and recreation organization:

• the provision of additional days to paid annual labor leave for years of employment;
• regular promotion of healthy lifestyle among employees using corporate media;
• partial compensation for the cost of trips to health camps and children’s health centers for children with disabilities and orphans for employees of the Company

Payments and benefits provided to full-time employees which are not provided to employees who work under conditions of temporary or part-time employment, broken down by core activities

Young employees’ policy

The Company is fully engaged in increasing youth involvement, aimed at creating an active life position of the young generation, patriotic education, social support of youth and providing the Company with highly competent specialists in the future.

The objectives of this area are:

• creation and development of the Youth Council under the management of the Company from among the youth assets of companies.
• interaction with youth public associations;
• participation of young specialists in scientific and practical conferences, forums, competitions and other events;
• the work with specialized educational organizations within cooperation on matters like training, search and selection of best graduates, organization of internships for students, participation in the improvement of curricula and the development of dual training, the development of scholarship programs, etc.;
•  development of social support programs for young professionals, young families;
• development of adaptation systems, internships, mentoring, training, career and professional planning in relation to young specialists.

Every year this youth movement strengthens its position. Young active members of the Company participate in workrelated and social life. There are many creative talents among them who are involved in organizing corporate events.

In 2020, young specialists implemented several activities to fully support the volunteer movement. In the beginning of 2020, the Youth Asset of the Company’s group provided charitable assistance to the families of employees who faced difficulties resulted in COVID-19 pandemic.

As part of the “Young in Soul” volunteer project, volunteers took part in distributing food baskets to the elderly, veterans and the disabled.

As part of the project “Taza Kazakhstan – Contribution to nature conservation” volunteers held an eco-cleanup day in Kazakhstan regions.

On the eve of the New Year, the youth activists turned the wishes of children suffering from cancer into reality with the help of “Magic Christmas Tree” charity event.

The company declares its intention to attract and retain young, talented workers, create jobs for young workers, develop a mentoring institute, and educate gifted school graduates at universities of Kazakhstan, near and far abroad in power industry majors.

As part of implementation of “Jas Orken” program, “SamrukEnergy” JSC group of companies accepted 4 young specialists and 5 trainees for the internship as part of implementation of “Digital Summer” program.

All young specialists for the period of rotation are given access to take an electronic adaptation course.

With the support of “Samruk-Energy” JSC, Almaty University of Energy and Communications held the Republican Olympiad in Physics and Mathematics.

Human rights

As regards observance of human rights, the Company conducts its business in strict compliance with the legislation, recognizes the importance and value of fundamental human rights and freedoms proclaimed by the UN, including freedom of association, recognition of the right to collective bargaining, labor rights, the right to a healthy environment, health protection. No cases of discrimination against employees were reported during the reporting year.

The principles of human rights observance are set out in the Code of Business Conduct of “Samruk-Energy” JSC.

Moreover, as part of its interactions with its suppliers and contractors, the Company requires compliance with labor laws, including compliance with health and safety requirements. The relevant requirements are included in the standard contracts of the Company and SA with suppliers.

Employees have the right to collective bargaining in the context of current legislation through permanent Conciliation Commissions, Committees for the settlement of social and labor conflicts.

The recruitment at “Samruk-Energy” JSC is carried out in accordance with the Rules for the competitive selection of personnel for vacant positions and the adaptation of new employees at “Samruk-Energy” JSC using the elements of testing and by complying with principles of transparency and meritocracy, taking into account professionalism, personal qualities of a candidate and his compliance with the qualification requirements and competencies for the position, as well as the principles of fair and equal treatment of employees. “Samruk-Energy” JSC provides maximum assistance in preventing any form of discrimination, the use of child and forced labor, as well as the selection and promotion of personnel solely based on professional skills and knowledge.

12 trade union organizations comprising 15,567 members operate at “Samruk-Energy” JSC in order to regulate and protect the professional, economic and social labor rights and professional interests of “Samruk-Energy” JSC employees.

“Samruk-Energy” JSC trade union assist in protection of interests of employees – members of the Company’s trade union in terms of compliance with labor laws, established social guarantees and compliance with contract provisions.

The company establishes dialogues with stakeholders on various aspects of its operations. In particular, to obtain information on concerns and complaints, a mechanism for submitting and reviewing complaints was developed using the feedback system on “Samruk-Energy” JSC external website – a written request or a telephone call to the “hot line”.

Thus, 67 appeals were registered across the Company in 2020, and all of them were settled during the reporting period. The Company registered 73 complaints in the same period of 2019.

There were no confirmed cases of discrimination against employees in the group of companies of “SamrukEnergy” JSC based on the results of 2020.

Number of complaints about the practice of labor relations filed, processed and settled through formal grievance mechanisms

Presentation of health and safety issues in formal agreements with trade unions

Implementation of social programs and interaction with local communities

“Samruk-Energy” JSC, being a socially responsible company, strives to pay attention to the social well-being of the regions where subsidiaries are located.

In 2020, “Samruk-Energy” JSC was involved in active interaction with the “Samruk-Kazyna Trust”Corporate Fund on the implementation of social programs aimed at solving socially significant issues in the regions of “SamrukEnergy” JSC presence.

Thus, аs the result of interaction of subsidiaries of “SamrukEnergy” JSC (“APP” JSC, “Samruk-Green Energy” LLP, “Ekibastuz GRES-1” LLP, “First Wind Power Plant” LLP) with local executive bodies, a list of social problems was identified as well as a list of non-profit organizations capable of initiating and implementing projects within the framework of solving these problems.