4.1. Sustainable development management

4.1.2. Sustainable development management structure

GRI 2-9, 2-12, 2-13, 2-14

А Kazakhtelecom JSC consistently develops the system of management of sustainable development, ensuring its integration at all levels of corporate governance. The ESG agenda is in the zone of constant attention of the Board of Directors, which approves the corresponding policies, monitors the implementation of initiatives and ensures the strategic alignment of the Company’s activities with the principles of sustainability.

The Board of Directors:

determines the strategy and main directions of activities of the Company in the area of SD;
considers and approves reporting in the area of SD;
controls the introduction of SD principles into the activities of the Company;
carries out the management of issues of sustainable development risks, including climate risks.

To the Board of Directors, reports on the results of the Company’s activities in the area of sustainable development are regularly (annually and quarterly) provided.

For a more systemic approach to these issues, at Kazakhtelecom JSC the Audit and Sustainability Committee has been created and is functioning. The functions of the Audit and Sustainability Committee within the framework of the control over the Company’s activities in the area of sustainable development include:

preliminary approval of the annual report and the report in the area of sustainable development of the Company in respect of the quality of the financial and non-financial information presented;
development of recommendations to the Board of Directors on topics concerning sustainable development, and also on the introduction at the Company of the principles of ESG and low-carbon development;
control over the transformation of business processes with account for the principles of sustainable development, ethical behaviour and responsible investment;
development of recommendations to the Board of Directors in respect of the approval of new and the assessment of the effectiveness of current policies, plans, programmes of the Company in the area of sustainable development, and also priority projects, key measures and initiatives of the Company in the area of sustainable development;
consideration of the issues of low-carbon development and management of the Company’s carbon footprint, including the potential risks and limitations arising for the Company related to the global climate agenda;
development of recommendations to the Board of Directors in respect of the compliance of activities, corporate reporting and documents with the requirements of international ratings in the area of sustainable development, and also the control over the fulfilment of measures on the improvement of the Company’s positions in international ratings in the area of sustainable development;
monitoring of the quality of the Company’s public reporting in the area of sustainable development. А

GRI 2-13

The subdivision responsible for the management of sustainable development at Kazakhtelecom JSC is the Department of Corporate Governance and Sustainable Development. The Department regularly carries out an inventory of internal regulatory documents, policies, practices and the internal control system, and also conducts work on the identification of sustainable development risks and their management. Not less than once every half-year the Department puts before the Audit and Sustainability Committee for consideration the issues related to the activities of the Company in the area of sustainable development, including the approval of new documents, the provision of reports on the results and other significant topics.

А Control over the implementation of the principles of sustainable development, the introduction of policies and standards, and also over the reliable disclosure of information is carried out by the Chairman of the Management Board and the general directors of branches in accordance with the plan of measures of the Company. The supervision of the activities on the achievement of ESG goals and key indicators is assigned to the Chief Administrative Officer. Internal communications on the issues of ethics and observance of standards are regulated by the compliance controller / head of the Compliance Service. External communications with the public are the responsibility of the Press Secretary. А

The structural subdivisions of the Company responsible for personnel management, occupational health, industrial safety and environmental protection implement individual directions of the ESG agenda, initiate and coordinate projects in the area of sustainable development and the achievement of the Sustainable Development Goals. Control over the implementation of the initiatives of the structural subdivisions and their results is carried out by the Central Office of Kazakhtelecom JSC. А