Introduction of ESG principles discussed at the Forum of Corporate Secretaries of Kazakhstan

Baiterek Holding and the Bureau of Continuous Professional Development of the Astana International Financial Center (AIFC) hosted the Forum of Corporate Secretaries of Kazakhstan on November 25, 2021. The participants discussed the impact of corporate governance on the sustainable development of companies and the introduction of ESG standards in Kazakhstan.

– The Forum focuses on the impact of corporate governance on the sustainable development of companies. Nowadays, a corporate secretary is the face of a company. He not only organizes the activities of the Board of Directors but is also responsible for the execution of the Code of Corporate Governance and Sustainable Development, – said Maira Turganova, head of the Corporate Secretary Service of Baiterek Holding.

 Dr. Klaus Mangold, Independent Director of Baiterek Holding, noted that ESG and corporate governance are important issues on the global agenda, which are closely interconnected with each other. Adherence to these principles will enable companies to succeed, especially in the industrial, banking, and financial sectors.

 – Following modern trends, new ethical business standards will be developed, taking into account human rights. Sustainability reporting companies are assigned an ESG disclosure rating. I expect these tendencies to become relevant in Kazakhstan as well. Investors not only pay attention to companies’ economic performance but also consider the adherence to ESG principles, – said Klaus Mangold.

Maira Turganova expressed her opinion on the mandatory reporting on the ESG introduction progress. The Securities and Exchange Commission believes these reports to be important to investors. Recently, corporate governance in Kazakhstan has been rapidly developing. It is likely that companies will soon need to report on compliance with ESG principles.

 – Earlier we reported on other standards. Currently, in Kazakhstan, we do not have obligations or any legislative norms for ESG reporting. Nevertheless, KASE and Astana International Exchange must disclose information regarding ESG. I agree with Dr. Mangold that in the near future it will be necessary to implement the ESG index, or the corresponding standards, – stated Maira Turganova.

 Also, the head of the Corporate Secretary Service added that the development strategy of modern financial institutions should be based on the ESG sustainable development principles.

 – Baiterek Holding is a financial development institution that constantly tries to improve corporate governance and introduce ESG principles in the Holding and its subsidiaries, – noted Maira Turganova.

Adil Mukhamedzhanov, Deputy Chairman of the Management Board of Baiterek Holding, believes that the Holding and the AIFC will become an example for other companies in Kazakhstan in introducing ESG standards into corporate governance.

– The ESG principles are very important and the Holding pays great attention to their introduction in the corporate governance system. Training seminars are also held in the subsidiaries. I am sure that cooperation with the AIFC will help the Holding and other companies in our country introduce ESG standards into the corporate governance system, – said Adil Mukhamedzhanov.

At the closing of the Forum, “The Best Corporate Secretary of Kazakhstan – 2021” competition was held. The winner is Daulet Kabiev, Corporate Secretary of Damu Entrepreneurship Development Fund. All participants were awarded prizes.

The Forum was also attended by Alexander Van de Putte (Chairman of the AIFC Corporate Governance Office), Yernur Rysmagambetov (Chairman of the AIFC Administration Board), Ekaterina Nikitinskaya (Chairperson of the National Council on Corporate Governance under the Presidium of the Atameken National Chamber of Entrepreneurs), Adalat Abdumanapova (Head of the IFC Corporate Governance Program and an expert on ESG and Sustainability), Zhardem Kurmangaziev (Ombudsman of Samruk-Kazyna National Welfare Fund JSC), and Simon Osborne (former CEO of The Chartered Governance Institute, AIFC Chief Advisor for Corporate Governance).