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.


The economic component of the Holding’s sustainable development contains the following objectives:

  • break-even of the Holding’s and its subsidiaries’ activities;
  • ensuring the interests of shareholders and investors;
  • increasing the efficiency of processes;
  • growth of investment in the creation and development of more advanced technologies;
  • increase in labor productivity;
  • creation of new jobs;
  • increase in export growth for non-resource-based industries;
  • manufacturing industry development.


The environmental component of the Holding’s sustainable development contains the following objectives:

  • minimizing the impact on biological and physical natural systems;
  • optimal use of limited resources;
  • use of environmentally friendly, energy- and material-saving technologies.


 The social component of the Holding’s sustainable development contains the following objectives:

  • ensuring transparent competitive procedures and equal opportunities within recruitment;
  • fair remuneration and respect for the rights of employees;
  • ensuring occupational health and safety for employees;
  • training and professional development for 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:

    1. 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.
    1. 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
    1. 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.
    1. in anti-corruption:


In 2018, activities for the construction of the sustainable development system were started in the Holding, in particular:


  • the Holding’s Sustainable Development Policy was developed and approved by the Management Board, assigning responsibility, integration of the sustainable development principles into the key processes and disclosing information in the field of sustainable development;
  • the Investment Policy was updated given the ESG factors (Environmental, Social and Governance) within the provision of financial support;
  • the process for the assessment of the Holding’s contribution to the growth of Kazakhstan’s GDP was started;
  • KPI in the field of sustainable development was included in the top management motivation system;
  • amendments were made to the Holding’s standard contract for the procurement of goods, works and services given the sustainable development principles;
  • active part in the development of IFC’s (International Finance Corporation) Investing for Impact: Operating Principles for Impact Management was taken;
  • activities on promoting the implementation and monitoring of the UN SDGs in Kazakhstan were initiated.

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:

  1. correlation of the SDG’s objectives and indicators with the Holding’s goals, objectives, priorities and directions;
  2. 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.
  1. 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.

  1. disclosure of information on the contribution to the SDGs achievement, including information on the supported projects aimed at its achievement.

Responsible Investment

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.


The Holding is considering the possibility of amending the Holding’s Development Strategy for 2014-2023 in regard to the development of responsible financing practices, including:

  • determination of the criteria for ‘green’ projects and priority ‘green’ industries;
  • identification of mechanisms for stimulating and subsidizing ‘green’ projects;
  • raising market funds through issuing ‘green’ bonds.

Human Resources Policy

The Human Resources Policy objective is to attract and retain professionals within the Holding’s 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

The Holding has taken specific relevant measures to promote the HR brand of “Baiterek” National Managing Holding” JSC and increase the involvement of the Holding’s employees, ensure internal communication and transparency: a Telegram channel has been opened for company news (HR News) posting, as well as the channel for publishing vacancies for external candidates search, the project for the corporate loyalty program creation has been initiated, adaptation and corporate loyalty program Telegram bots have been created. On a quarterly basis, employees of “Baiterek” NMH” JSC participate in surveys for the assessment of satisfaction with the internal departments activities, within which the qualities such as effective teamwork in projects, mutual respect and assistance in solving problems are evaluated. This indicator is included in the KPI map of each employee, the average indicator over 4 quarters in 2018 amounted to 78% with the expected target value of 70%. The level of the Holding’s Central Office employees involvement in 2018 amounted to 76%.

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 Unified Personnel Reserve of “Baiterek” NMH” JSC Group are reviewed; second, internal candidates (employees of “Baiterek” NMH” JSC, subsidiaries and the outsourcing sector) are reviewed; and, third external candidates are considered. This principle of personnel search and selection allows regulating the priority of internal selection in order to retain the key specialists and motivate them to continue working within the Group of the Holding’s companies. Information on the search for external candidates is mandatory posted on the website of “Baiterek” NMH” JSC, in the Telegram channel along with the notifications sent to the followers, and applications are accepted by email or through registration on the Digital Baiterek web-platform.

Talents Management

In 2018, the Holding implemented the project for talented employees selection to the Unified Personnel Reserve of “Baiterek” NMH” JSC Group, the key objectives of which are as follows: personnel cost-effectiveness, quick search for strong candidates for the key vacancies, accelerated adaptation to a new role and maintaining continuity, motivation and retention of the key professionals. According to the results of the competition, reservists were selected among the employees of “Baiterek” NMH” JSC and its subsidiaries in three categories: “Top-100” (future heads of structural units), “Top-50” (future managing directors and members of the Management Board) and “Top- 20 ”(supervising managers ready for appointment in the short term). Following the results of 2018, 91 people have been enrolled in the Holding’s personnel reserve.

Training and Professional Development

Training and professional development of employees is carried out to update and obtain additional theoretical and practical knowledge, skills, capacities, competences and experiences in the field of professional and managerial activities among employees for the effective fulfillment of their duties and assignments determined in accordance with the Holding’s Development Strategy. Training and professional development arrangement for the Holding’s employees is carried out on the basis of the following principles: • compliance of the training events topic and content with the needs defined in accordance with the official duties of the employee, the results of his/her activities assessment, goals and objectives set out for the employee; • the focus of training events on solving specific problems, ensuring an increase in the Holding’s activities efficiency, study of the best corporate practices and standards; • systematic, applied, planned nature of training and professional development; • coverage of the maximum possible number of the Holding’s employees 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 the evaluation of effectiveness based on the KPI implementation (once a quarter), which allows ‘cascading’ the top management KPI to the level of the structural unit and individual employee, having enough criteria to determine the specific level of the set out goal achievement at the ‘threshold-goal-challenge’ level and evaluate the real effectiveness of each employee. In addition, employees of “Baiterek” NMH” JSC pass a comprehensive performance assessment once a year, within which the overall performance of the employee over the past year and the level of his/her personal and business competencies development are reviewed. The results are distributed based on the so-called ‘9 Box Talent Matrix’. According to the results of the assessment, no bonus is paid, but the results of the assessment influence the decisions on the employee’s further motivation and stimulation (training, promotion, admission to the personnel reserve, etc.). In accordance with the updated Development Strategy of “Baiterek” NMH” JSC for 2014-2023, the remuneration grading and unification system is being introduced since 2017 in the group of “Baiterek” NMH” JSC companies. The introduction of common principles allows ensuring the internal justice in the remuneration system and comparison with the current situation on the labor market.
охрана труда

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 on 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 Holding continues the tradition of providing charity assistance to vulnerable groups of the population, low-income citizens, within the revival of national values, support for culture, science and education.


In 2018, the Management Board of “Baiterek” NMH” JSC decided to allocate financial assistance for the medical treatment of children from low-income groups of the population, development of science, art, construction of a medical center, etc. The Holding’s employees also voluntarily provided assistance to organizations and individuals at their own expense.


Last year, financial assistance was provided for the implementation of the Mentors Project aimed at assistance to orphans and children deprived of parental care. The objective of the project is to help children unleash their life potential and build skills of independent living through communication with adult volunteering mentors.


In May 2018, employees of the Holding and its subsidiaries took part in a charity project dedicated to home front workers and the Great Patriotic War veterans. The colleagues congratulated the front workers with flowers, souvenirs and grocery baskets. As a part of the congratulations of the Great Patriotic War veterans, the Holding handed over memorable gifts at the concert held at “Zhas Ulan” National School of the Ministry of Defense of the Republic of Kazakhstan, which was dedicated to the commemoration of those killed in the war.


In July 2018, the Holding’s employees took part in the ‘20 Good Deeds’ Charity Marathon dedicated to the celebration of the ‘20th Anniversary of the City of Astana’. Three wheelchairs were purchased and delivered to children with disabilities within the campaign.


Before the start of the new academic year, the Holding has taken part in the charity event of the ‘Road to School’ within the framework of which employees purchased and donated stationery and backpacks to children from low-income, large or single-parent families.


Environmental Impact

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.


‘Green Office’

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. They are also actively involved in the citywide clean-up and environmental campaigns. 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. Parking spaces for bicycles that motivate employees to follow healthy lifestyles and reduce potential adverse environmental impacts when using motor vehicles were equipped near Baiterek Business Center for the employees.

The Holding is considering an opportunity for the development and implementation of the ‘green office’ concept in 2019.