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.
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.
In 2019, the Holding implemented the following activities in the field of sustainable development:
- For the first time, "Baiterek" Holding obtained an international ESG rating, the results of which confirmed its adherence to the principles of social responsibility, corporate governance and business ethics.
- The Holding’s development strategy for 2014–2023 includes the Holding’s initiatives and KPIs for sustainable development.
- approved sustainable development policies at the level of 11 subsidiaries of the Holding.
- work has begun on the development of criteria for "green" projects.
- took part in the official launch of the IFC principles on social and environmental impact management of the funded projects “Investing for Impact: Operating Principles for Impact Management” during the spring meetings of the World Bank Group and the International Monetary Fund in Washington.
- according to the results of the IX Contest of annual reports of the QRA rating agency, the annual report of Baiterek holding for 2018 took the second place in the nomination “Best annual report in the financial sector”. In the overall rating of annual reports, since 2017 the Holding's annual report has risen by 73 positions - from 82 places in 2017 to 9 places in 2019.
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 (SDGs), 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 is carrying out activities on the SDGs study and determining the Holding’s contribution to its achievement, including:
- correlation of the SDG’s objectives and indicators with the Holding’s goals, objectives, priorities and directions;
- undertaking commitment to the SDGs;
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.
- integration of obligations and goals with the Holding’s processes and practices;
The existing programs being implemented by the Holding contribute to the achievement of the SDGs majority and its objectives. At the same time, the Holding will continue carrying out activities on the SDGs integration in the Holding’s processes and practices to meet the specific SDGs objectives and indicators.
- disclosure of information on the contribution to the SDGs achievement, including information on the supported projects aimed at its achievement.
In September 2018, the Holding’s Investment Policy was approved by the Decision of the Board of Directors approved in a new version, according to which the Holding intends to develop the practices of ESG factors application when providing financial support (including in consideration of the Principles for Responsible Investment (UN PRI) and the Equator Principles).
The Holding and its subsidiaries seek to introduce and integrate ESG factors into the investment decision-making process, including through familiarization with the ESG factors of the Holding’s counterparties.
The Holding is expecting its counterparties:
- to apply environmental risk management system to identify, assess actual and potential environmental and social impacts, determine and effectively implement appropriate management measures, control and environmental risks level management;
- to apply a human resources management system and ensure (maintain) health safety for employees which should be based on the respect for the rights of employees, including freedom of association and the right to collective bargaining; this system should ensure fair treatment for employees, creation of safe and healthy working conditions for them, precaution and prevent adverse effects on the health and safety for the community and consumers groups;
- to apply a good corporate governance system based on the principles of fairness, honesty, responsibility, transparency, professionalism and competence; good corporate governance implies respect for the rights and interests of all stakeholders engaged within the organization’s activities and contributes to its successful activities implementation, including the growth of its market value, maintaining financial stability and profitability.
Human Resources Policy
TheHuman Resources Policy is to attract and retain professionals in the Holding Group who are able to make a valuable contribution to the development and growth of the Holding’s effectiveness, as well as to maximize the return on investment in human resources.
The Employer’s Brand
Personnel Selection and Recruitment
Training and Professional Development
Remuneration and Employees Performance Management
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.
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 accordance with this program, in 2019 the Holding carried out charity activities in the following areas:
- Philanthropic assistance to applicants in order to improve their living conditions, in particular, in order to treat children with diagnoses of cancer, cerebral palsy and others.
So, in 2019, 10 projects for the provision of philanthropic assistance were implemented.
- Patronage of assistance to applicants for the development of science, education, culture, art, sportsmanship, preservation of the historical and ethnocultural heritage of society and the state.
So, Holding provided support for the project "Mentors," which provides assistance to orphans and children deprived of parental care to reveal their life potential and build skills and life skills through interaction with adults volunteer mentors.
Such projects were implemented in Pavlodar, Uralsk, Karaganda and Nur-Sultan. At the same time, the Holding provided assistance for implementing projects to develop the speech therapy industry, increasing the socio-political activity of people with disabilities, providing support to people with disabilities, large and low-income children in the rural district, developing a rehabilitation center for children with cerebral palsy and others.
Implemented initiative projects of the Holding in 2019
- BaiterekOpenHearts 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";
- A charity challenge “Good Deals of Baiterek” was organized, within the framework of which 10 Holding companies organized a number of charity events, such as: tree planting, a visit to a nursing home, a visit to a children’s, oncology center, a visit to the Akmola Training and Production Enterprise of the Kazakhstan Society of the Blind, assistance to pregnant women who find themselves in a difficult life situation, assistance to the "Stop-catching" Animal Rescue Fund, etc.
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 new business center of the Holding Group was built considering the technology of respect for resources. An automated building management system provides equipment and internal engineering life support systems autonomous and remote control and monitoring.
At the initiative of employees, landscaping of office spaces and workplaces is carried out. Special waste paper bins have been installed in each office for the waste paper collection and its subsequent recycling within rational use of office paper. For workers near the business center "Baiterek" are equipped with parking spaces for bicycles.
In 2019, the Holding won the first republican competition “Green Office” in the nomination “Among state bodies (ministries, akimats, administrations and others) and the quasi-public sector”. The competition was 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 Office in Nur Sultan with the aim of promoting advanced green technologies for the transition to an ecological and low-carbon lifestyle.
Workers also take an active part in citywide subbotniks and urban environmental events. In 2019, Baiterek Holding supported the republican eco-challenge Birge - Taza Kazakhstan! In which 250 employees of the Holding and its subsidiaries took part. Volunteers cleared the banks of the Yesil and Karasu rivers along the bypass from the airport towards the Karaganda highway.