Sustainability management structure

Kazakhtelecom JSC is continuously working to improve its approach to sustainable development management.

Until 2022, the Human Resources, Remuneration and Social Affairs Committee of Kazakhtelecom JSC was responsible for managing sustainable development at the level of committees of the Board of Directors. As part of the development and strengthening of the Company’s ESG practices, in July 2022 the Audit Committee was renamed the Audit and Sustainable Development Committee. The functions of the Committee in the framework of control over the activities of the Company in the field of sustainable development include:

• preliminary approval of the Company’s annual report for the quality of the non-financial information provided;
• development of 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;
• control over the transformation of business processes, taking into account the principles of sustainable development, ethical behavior and responsible investment;
• development of recommendations to the Board of Directors regarding the approval of new and evaluation of the effectiveness of existing policies, plans, programs of the Company in the field of sustainable development, as well as priority projects, key events and initiatives of the Company in the field of sustainable development;
• consideration of 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;
• development of recommendations to the Board of Directors regarding the compliance of activities, corporate reporting and documents with the requirements of international ratings in the field of sustainable development, as well as control over the implementation of measures to improve the Company’s position in international ratings in the field of sustainable development;
• monitoring the quality of the Company’s public reporting in the field of sustainable development.

The division responsible for sustainable development management is the Corporate Governance Service. The Service regularly conducts an inventory of internal regulatory documents, policies, practices and internal control of the Company. In addition, continuous work is underway to identify the risks of sustainable development and take measures to manage them. The Corporate Governance Service regularly (at least once every six months) submits issues related to the Company’s activities in the field of sustainable development, such as approval of developed internal documents, provision of information on the results of activities in the field of sustainable development, etc., to the Audit and Sustainable Development Committee for consideration.

The Chairman of the Management Board and General Directors of the branches control, implement and implement the principles, policies, standards in the field of sustainable development and provide reliable information in accordance with the Company’s action plan. The Managing Director of Kazakhtelecom JSC, who is in charge of sustainable development issues, ensures coordination of the Company’s activities to achieve goals and KPIs. The procedure for internal communications regarding ethical standards is regulated by the Compliance Controller/Head of the Compliance Service. The Head of the Communications Department is responsible for external communications with the public.

Structural divisions of Kazakhtelecom JSC, responsible for personnel management, labor protection and industrial safety, environmental protection, supervise certain issues in the field of sustainable development, are responsible for initiating, coordinating, and implementing the sustainable development management system and achieving the Company’s SDGs. Direct responsibility and control over the implementation of initiatives of the structural divisions of the Company lies with the Central Office of Kazakhtelecom JSC.

Strategic areas of Kazakhtelecom JSC in the area of sustainable development:

• introduction of innovative information and communication technologies and improvement of the quality of services provided in order to improve the lives of people;
• stable economic growth;
• reduction of environmental impact;
• creating attractive working conditions and ensuring the safety of employees.

ESG priorities

Environment

• reduced use of natural resources;
• energy efficiency.

Social

• training and development of personnel;
• increase in the level of employee engagement;
• occupational safety and safety;
• social stability.

Governance

• shareholders rights;
• best corporate governance practices;
• fair remuneration.

As part of the Action Plan of Kazakhtelecom JSC to obtain an ESG rating for 2022–2023, the following activities and initiatives were implemented:

• climate change disclosure;
• development of the Low-Carbon Development Program of Kazakhtelecom JSC for 2022–2032;
• preparation for obtaining an ESG rating;
• development of the Roadmap in the field of sustainable development.