The Holding’s Sustainable Development Approach
While being the key financial institution of the Government of the Republic of Kazakhstan for the development, “Baiterek” Holding recognizes the importance of its influence on the economy, environment and community to ensure the long-term sustainable development and strives for maintaining a balance of interests among the stakeholders.
The Holding’s sustainable development is a set of principles and obligations by which the Holding is guided when carrying out its activities, namely in:
- stakeholders engagement management;
- national economy, social and environmental impact assessment and management.
The Holding ensures the coherence of its economic, environmental and social goals for the long-term sustainable development.
Sustainable Development Policy of Holding
- Break-even of the Holding and its subsidiaries;
- ensuring the interests of shareholders and investors;
- process efficiency improvement;
- increased investment in the creation and development of more advanced technologies;
- increase in labor productivity;
- creation of new jobs;
- increase in export growth of non-primary industries;
- growth of the manufacturing industry.
- minimization of impact on biological and physical natural systems;
- the optimal use of scarce resources;
- the use of environmentally friendly, energy- and material-saving technologies.
- ensuring transparent competitive procedures and equal opportunities for employment;
- fair remuneration and respect for the rights of workers;
- ensuring labor safety and maintaining the health of workers;
- training and professional development of employees;
- implementation of internal and external social programs.
When building engagement with the stakeholders, the Holding is guided by the following basic principles:
- respect and consideration of all stakeholders’ interests;
- proactively informing the target audiences of their activities;
- ensuring objectivity, reliability, independence and a high level of information transparency in terms of state programs, individual internal procedures (procurement, recruitment, provision of financial and non-financial services) implementation, as well as the use of financial resources;
- ensuring open and productive cooperation with all the stakeholders;
- fulfillment of obligations undertaken to stakeholders;
- receiving feedback from stakeholders on a regular basis.
The Holding declares its commitment to the principles of the UN Global Compact:
- in human rights protection:
- the Holding supports and respects the protection of internationally proclaimed human rights;
- the Holding ensures that it is not complicit in human rights abuses.
- in labor relations:
- the Holding upholds and recognizes the right to collective bargaining;
- the Holding contributes to the elimination of forced and compulsory labor, discrimination in respect of employment and occupation
- in environmental protection:
- the Holding supports a precautionary approach to environmental challenges;
- the Holding undertakes initiatives to promote greater environmental responsibility;
- the Holding encourages the development and diffusion of environmentally friendly technologies.
- in anti-corruption:
- The holding declares intolerance to all forms of corruption and other illegal actions, including extortion and bribery.
Sustainable development management in the Holding is carried out within the framework of the general management system of the Holding's activities and is an integral part of it.
The Board of Directors of the Holding carries out strategic management and control over the implementation of sustainable development. The Strategic Planning Committee under the Board of Directors of the Holding considers issues on the Holding's activities in the field of sustainable development on an annual basis.
The Management Board of the Holding approves the action plan for sustainable development. The Strategy and Corporate Development Committee under the Holding's Management Board is responsible for coordinating activities in the field of sustainable development.
Structural divisions of the Holding implement measures in the field of sustainable development, ensuring the achievement of efficiency in the field of sustainable development.
UN Sustainable Development Goals
In September 2015, a new world agenda of Transforming Our World: the 2030 Agenda for Sustainable Development was adopted at the 70th Session of the UN General Assembly that includes 17 Sustainable Development Goals UN (SDGs UN), which replaced the Millennium Development Goals.
One of the features of the newly adopted goals is that they are addressed not only to governments, but also to other participants of the world’s sustainable development process: businesses, civil society, all individuals.
The holding and its subsidiaries within the framework of their activities contribute to the achievement of the UN SDGs by Kazakhstan.
In the course of a project portfolio preparation, the Holding prefers projects that are consistent with the SDGs and have a significant impact on the sustainable socio-economic development of the Republic of Kazakhstan. In particular, projects should contribute to the following:
- inclusive and sustainable industrialization;
- openness, security, viability and environmental sustainability of cities and settlements;
- diversification of the economy of the Republic of Kazakhstan and individual regions (oblasts)/cities.
The Holding's contribution to the achievement of the UN SDGs is disclosed in more detail in the Holding's 2019 Annual Report.
The Holding, as a financial institution, pays special attention to responsible investment. As part of its activities, the Holding strives to introduce and integrate ESG factors into the investment decision-making process by presenting them to the Holding's counterparties.
The holding expects its counterparties to:
• apply an environmental risk management system to identify and estimate actual and possible impacts on the environment and society; determine and implement appropriate management measures, and exercise control over the level of environmental risks;
• implement human resource management and ensure (preserve) the health of workers. It must be based on respect for workers' rights, including freedom of association and the right to collective bargaining. This system should ensure fair treatment of employees; create safe and healthy working conditions for them, and prevent adverse impact on the people’s health and safety;
• ensure good corporate governance based on the principles of fairness, honesty, responsibility, transparency, professionalism, and competence. Good corporate governance implies respect for the rights and interests of all persons interested in the organization's activities and contributes to its success, including the growth of its market value, maintaining financial stability and profitability.
ESG rating is a key tool allowing a company to determine whether the implementation of the ESG standards was successful. Moreover, this rating is designed to measure a company's resilience in the long term by identifying its risks and opportunities.
In 2019, the Holding received an international ESG rating for the first time. The experts of the ISS-Oekom Rating Agency have assigned a rating of D+ to the Holding, while other organizations working in a similar sector were ranked at the D/C level, with B being the highest rating (Asian Development Bank).
The experts noted the Holding’s adherence to the principles of social responsibility, corporate governance, and business ethics, as well as the intention to integrate the ESG factors into the Holding’s strategy and business processes. The experts also pointed out that taking into account environmental factors during project activities is necessary.
The Holding is actively working in this direction. In 2020, the Environmental and Social Policy was developed in order to increase potential environmental and social effects from the implementation of the Holding’s projects. The Policy defines principles and approaches to accounting and monitoring of environmental and social factors in the investment activities of the Holding and its subsidiaries. When developing the Policy, the following international initiatives for responsible investment were taken into account – the UN Principles for Responsible Investment, the Equator Principles, and IFC's Environmental and Social Performance Standards. The Policy also defines the criteria for "green" projects based on the "green" taxonomy developed by the AIFC.
Human Resources Policy
In 2019, by the decision of the Management Board of Baiterek NMH JSC, the Unified Personnel Policy of the Holding was approved - a corporate standard regulating the issues of effective human resource management not only in the Headquarters of the Holding, but also in subsidiaries. The document provides for significant changes in personnel management processes in areas such as professional development and personnel certification, building and promoting the employer's brand, and value management.
The Employer’s Brand
In order to promote the HR brand of "Baiterek" NMH" JSC and to increase the involvement of the Holding’s employees, ensure internal communication and transparency, the Holding has taken a number of relevant measures: a Telegram channel has been opened for publishing company news (HR News) and a channel for publishing vacancies to search for external candidates. On a quarterly basis, employees of "Baiterek" NMH" JSC participate in questionnaires to assess satisfaction with the work of internal departments, where qualities such as effective teamwork in projects, mutual respect and assistance in solving problems are evaluated. This indicator is included in the ECE card of employees. The level of involvement of the Holding's Group employees for 2019 was 80%.
Personnel Selection and Recruitment
"Baiterek" NMH" JSC applies the principle of personnel search and selection on a 3-stage basis: first of all, candidates from the Presidential youth personnel reserve and the Unified personnel reserve of "Baiterek" NMH" Group are considered, and secondly, internal candidates (employees of "Baiterek" NMH" JSC, subsidiaries and the outsourcing sector), the third - external candidates. This principle of search and selection allows us to regulate the priority of internal selection in order to retain key specialists and motivate us to continue working in the Holding Group. Information on the search for external candidates is mandatory published on the website of "Baiterek" NMH" JSC, in the Telegram channel with the notification of subscribers, and applications are accepted by e-mail.
In 2019, the Holding implemented a project to select talented employees for the Unified Personnel Reserve of the "Baiterek" NMH" JSC Group, whose key tasks are: efficiency of personnel costs, quick search for ready-made candidates for key vacancies, accelerated adaptation to a new role and maintaining continuity, motivation and retention of key specialists. According to the results of the competition, reservists were selected among employees of "Baiterek" NMH" JSC and its subsidiaries in three categories: “Top-100” (future heads of structural divisions), “Top-50” (future managing directors and members of the Management Board) and “Top-20” (senior managers ready for appointment in the short term). At the end of 2019, 112 people were enrolled in the personnel reserve of the Holding Group.
Training and Professional Development
Training and professional development of employees is carried out with the aim of updating and obtaining additional theoretical and practical knowledge, skills, abilities, competencies and skills in the field of professional and managerial activities of employees for the effective fulfillment of their duties and tasks, determined in accordance with the Holding’s development strategy. Organization of training and professional development of the Holding employees is carried out on the basis of the following principles:
- compliance of the topic and content of training events with the needs defined in accordance with the official duties of the employee, the results of the assessment of his activities, goals and objectives set for the employee;
- the orientation of training events on solving specific problems, ensuring an increase in the effectiveness of the Holding's activities, the study of best corporate practices and standards;
- systematic, applied, planned nature of training and professional development;
- coverage of the maximum possible number of employees of the Holding with training and professional development programs.
Remuneration and Employees Performance Management
Since the beginning of 2018, employees of "Baiterek" NMH" JSC have switched to a fundamentally new system for evaluating performance based on ECE performance (once a quarter), which allows you to “cascade” ECE management at the level of the structural unit and individual employee, have enough criteria to determine a clear the level of achievement of the goal at the threshold-goal-challenge level and evaluate the real effectiveness of each employee. In addition, once a year, employees of "Baiterek" NMH" JSC pass a comprehensive performance assessment, which examines the overall performance of the employee over the past year and the level of development of his personal and business competencies. The results are distributed according to the so-called "9-cell talent matrix".
According to the results of the assessment, no bonus is paid, but the results of the evaluation influence decisions on further motivation and stimulation of the employee (training, promotion, admission to the personnel reserve, etc). In accordance with the updated Development Strategy of "Baiterek" NMH" JSC for 2014-2023, from 2017, a system of grading and unification of the wage system has been introduced in the group of companies of "Baiterek" NMH" JSC. The introduction of common principles allows ensuring the internal justice of the wage system and comparing it with the current situation on the labor market.
Safety and labor protection
As a responsible employer, the Holding and its subsidiaries strive to ensure the proper organization of work of workers in the workplace and create safe working conditions that meet the requirements of the legislation of the Republic of Kazakhstan in this area. In the performance of their official duties, as well as while in the premises of the Holding, employees comply with safety regulations adopted and developed by the Holding in accordance with the Holding's policies and on the basis of the legislation of the Republic of Kazakhstan. Every year, the Holding Group conducts training activities on labor protection and safety - seminars, business breakfasts, and exercises on evacuation from the Holding's building in emergency situations.
Due to the nature of its activities, the Holding does not have a direct significant environmental impact. The main resources consumed by the Holding are electric power, heat and water.
The Holding applies the principles and methods for rational use of resources that ensure prevention of adverse environmental impacts in the best possible way.
The Holding seeks to reduce excess resources consumption and minimize the existing adverse environmental impact within its activities through the introduction of energy-efficient technologies, reduction of water consumption, paper consumption for office needs through application of an e-document management system and double-sided printing practices.
The Holding has approved the Green Office Concept, which contains the goals, objectives and principles of the Green Office, as well as approaches to greening the office and proposed activities.
Objectives of the formation of the Green Office Concept:
reducing the negative impact of the Holding's activities on the environment;
environmental education of employees;
increasing the level of rational use of resources.
The principles of the Green Office Concept of the Holding are based on the three R rules - Reduce, Reuse, Recycle:
- Reduce. According to this principle, the "green office" should strive to reduce the use of natural resources: electricity, water, paper, heat. This rule is achieved both by using modern technologies and equipment, and by organizational and campaigning measures.
- Reuse. This principle focuses on the use of consumables, including paper, stationery and office equipment, made from recycled materials.
- Recycle. The main thing in this principle is to properly dispose of used raw materials: to sort all waste, hand over waste paper, and properly dispose of office equipment and batteries.
Since 2019, the Holding has been actively participating in the republican competition "Green Office" held by the ALE "Coalition for a" Green Economy "and the Development of G-Global" with the support of the Ministry of Ecology, Geology and Natural Resources of the Republic of Kazakhstan and the OSCE Program Office in Nur-Sultan with the aim of promoting advanced green technologies for the transition to an ecological and low-carbon lifestyle.
In 2019, the Holding won the competition in the category “Among government bodies (ministries, akimats, administrations and others) and the quasi-public sector”.
Sponsorship and Charity Activities
The decision of the Holding Board approved the Charity Program for 2019, which provides for a set of measures and measures to provide charity and sponsorship to applicants, as well as ensures transparency in planning and effective management of funds intended for charity within the approved annual budget and (or) development plans.
In 2019, 10 projects were implemented to provide philanthropic assistance to those who applied in order to improve their living conditions, in particular, with the aim of treating children with diagnoses of cancer, cerebral palsy and others.
Implemented initiative projects of the Holding in 2019
- "Baiterek Open Hearts" Charity Fairs were held in February and November 2019. The proceeds were used to treat children with serious illnesses;
- A social team-building was organized, within the framework of which the employees of the Holding congratulated veterans of the Great Patriotic War and rear workers;
- The charity campaign “Road to School” was held, in which 80 children from dysfunctional families received backpacks with office supplies by the beginning of the new school year;
- Participated in the annual charity run "Burabike".
Also, a charitable challenge "Good Deeds of Bayterek" was organized, within the framework of which 10 companies of the Holding organized a number of charitable events, such as: planting trees, a visit to a nursing home, a visit to a children's oncological center, a visit to the Akmola educational and production enterprise of the Kazakhstan Society of the Blind, assistance to pregnant women, those who find themselves in a difficult life situation, assistance to the Stop Catching Animal Rescue Fund and others.
Rules for the implementation of charity by the joint-stock company "National Managing Holding "Baiterek"
Report on the implementation of charity by the joint-stock company "National Managing Holding "Baiterek" for 2019