An environmental impact assessment (EIA) is conducted at the planning stage of every project to identify the environmental and other effects of the project in compliance with the precautionary principle (Principle 15 of the United Nations Rio Declaration on Environmental Protection and Development, 2020), the requirements of the Kaztradeneft environmental management system, and the laws of the Republic of Kazakhstan. During the design phase of every project, public hearings are held wherein stakeholders such as research institutions, public associations, governmental, administrative, and media representatives can offer their opinions.

Kaztradeneft is dedicated to operating responsibly in order to guarantee that our operations have as few adverse effects on the environment as possible. We actively lower our greenhouse gas emissions while upholding stringent international environmental standards. Our primary environmental goals for 2021 were to monitor GHG emission reduction plans and join the Carbon Disclosure Project (formerly CDP), an essential platform that allows companies to share information about their risk management and environmental impact.

We are pleased to announce that Kaztradeneft’s Climate Change CDP response was given a “C” grade. We are pleased with our first-year score because it demonstrates how the procedures and policies we recently implemented are setting up the Company to deal with climate change both now and in the future. We maintained both our commitment to enhancing operational transparency and our participation in the CDP project in 2022. The objective of both the Kaztradeneft Climate Change CDP responses and the initial responses for the Water Security CDP module was to maintain or improve the “C” grade in July.

Kaztradeneft is committed to making as many practical investments in state-of-the-art technologies as possible in order to reduce all greenhouse gas emissions. In compliance with Kazakhstan’s GHG emission regulations, Kaztradeneft has been diligently tracking and reporting its greenhouse gas emissions since 2021. We participated in the CDP disclosure process a second time in 2022 to demonstrate our dedication to advancement and transparency in this field.

As a dual-listed business, Kaztradeneft complies with reporting requirements set forth by Kazakhstan. The period for which the Directors’ Report is prepared coincides with the Company’s GHG reporting period. In accordance with Kazakhstan’s National Plan for 2021–2022, the Kaztradeneft has been authorized to emit 627,174 tonnes of carbon dioxide, or “CO2.” The Ministry of Environment, Geology, and Natural Resources of Kazakhstan granted an extra quota of 103,650 tonnes of CO2 emissions to the GTU 3 facility in 2021. This facility was not included in the National Plan at the time.

The National Plan for 2021 places a limit on Kaztradeneft’s CO2 emissions of 212,998 tonnes. We intend to increase the efficiency of our facilities by modifying the schedules for operations and maintenance, as well as by reducing the amounts of fuel gas we use and the volume of flares we produce. With a focus on minimizing gas flaring, Kaztradeneft only flares in compliance with the terms of licenses granted by the Ministry of Energy in Kazakhstan. Regular maintenance at our gas treatment plants has been shown to reduce the possibility of inadvertent flaring, and the introduction of a program for gas utilization has also reduced gas flaring.