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 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.
As a financial institution for development and carrying out a mission to promote sustainable economic development of the Republic of Kazakhstan, Baiterek NMH JSC actively integrates into its activities ESG (Environmental, Social and Governance) principles and best practices of foreign development institutions in the field of responsible investment. This approach involves not only taking into account the principles of sustainable development in the framework of their internal business processes, but also the presentation of appropriate requirements to their customers in the framework of the credit and investment process.
Considering its strategic priorities and the best practices of international financial organizations, the Holding has included in its Sustainable Development Policy and Investment Policy the intention to develop the practice of responsible investment by integrating ESG factors into the decision-making process for providing financial support. In addition, the Holding excluded or limited financing of a number of industries that do not meet both the priorities of the Holding and international requirements in the field of responsible investment.
The holding began work on the development of environmental and social requirements for projects based on the best practices in the field of responsible investment - Performance Standards for Environmental and Social Sustainability of IFC or EBRD Requirements for Project Implementation.
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
Personnel Selection and Recruitment
Training and Professional Development
- 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
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 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.
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.