ESG news and events

KazAgroFinance supports and is aware of the importance of all 17 UN Sustainable Development Goals ("SDGs") and strives to make a significant contribution to the SDGs.

As a part of its activities, the Company achieves the following Sustainable Development Goals:

SDG 1. End poverty in all its forms everywhere

  • Initiatives aimed at increasing accessibility of financial services
  • charity and sponsorship

SDG 2. Zero Hunger, ensure food security governance and improved nutrition and promote sustainable agricultural development

  • Company assists in the technical equipment of the agro-industrial complex by providing leasing services for the purchase of agricultural machinery and equipment. Thus, through technological renewal of the agro-industrial complex with high-performance machinery, Company has a significant impact on food security

SDG 3. Ensure healthy lives and promote well-being for all at all ages

  • Creating safe working conditions and preserving health of the Company's employees
  • social support for employees

SDG 5. Achieve gender equality and empower all women and girls

  • creation of equal working conditions and career opportunities;
  • ensuring an equal system of performance evaluation and remuneration.

SDG 8. Promote inclusive and sustainable economic growth, employment and decent work for all

  • increasing investment in agriculture
  • business development in the agro-industrial complex by providing leasing services

SDG 12. Ensure sustainable consumption and production patterns

  • Increasing the energy saving culture
  • Reduction of resource consumption (energy consumption, water consumption)
  • Optimization of paper document flow through automation of the Company's business processes

SDG 15. Protecting, restoring terrestrial ecosystems and promoting sustainable use, sustainably managing forests, combating desertification, halting and reversing land degradation and halting biodiversity loss

  • KazAgroFinance leases only new modern agricultural machinery, which, compared to outdated worn-out machinery, has less negative impact on the environment (reduced emissions of harmful substances into the atmosphere and soil contamination due to petrochemical waste during operation).

Sustainable development management in the Company is performed as part of the Company's overall business management system and is an integral part of it.

The company's sustainable development include:

  • planning of activities in the field of sustainable development – analysis of the internal and external situation, definition of goals, as well as targets in the field of sustainable development, measures to improve and advance activities on the three components of sustainable development, responsible persons, necessary resources and deadlines;
  • coordinates the activities of the Company's structural subdivisions aimed at achieving the goals and objectives of this Policy;
  • prepares a report on the action plan implementation in the field of sustainable development;
  • prepares the Company's annual report, including a section on sustainable development.

The Company's Annual Report participates annually in the Annual Report Competition.

One of the significant developments in 2022 was the introduction of a new financing program, Preferential Leasing. On July 14, 2022, K.K. Tokayev the President of the Republic of Kazakhstan in his speech at the enlarged session of the Government of the Republic of Kazakhstan instructed the Government of the Republic of Kazakhstan implement a mechanism of preferential lending for the purchase of domestic agricultural machinery at the expense of "Zhasyl-Damu" JSC.

The program "Preferential leasing" implemented in accordance with the Environmental Code of the Republic of Kazakhstan (subparagraph 15) paragraph 1 of Art. 388), and the Rules of financing by the operator of the extended obligations of producers (importers) of the organization, fifty and more percent of voting shares (shares of participation in the authorized capital) of which directly or indirectly belong to the state and/or the national management holding, approved by the Government of the Republic of Kazakhstan on September 2, 2021 No. 604, for the further financing of projects in the manufacturing industry, aimed at the further financing of projects in the manufacturing industry, aimed at the development of the national management holding.

KazAgroFinance was determined as the leasing company under this program. To implement the program of preferential leasing allocated KZT 40 billion for the purchase of about a thousand units of self-propelled agricultural machinery of domestic production. Equipment that meets the environmental requirements defined by technical regulations and has certificates of conformity is leased.

To introduce sustainable development principles into the Company's core business processes, KazAgroFinance's Sustainable Development Action Plan for 2022 was implemented in the reporting year.

Following activities were performed within the Plan's implementation:

  • possibility of introducing financing instruments according to ESG principles in the Company has been analyzed. Meetings with representatives of the AIFC Green Finance Center, Kazakhstan Stock Exchange JSC concerning green bonds issue, procedure of green bonds placement, external verification and IFC REGIO TAF team on preparation of green bond framework. Company is working on the possibility of issuing social bonds;     
  • to promote ESG proposals and initiatives, KazAgroFinance joined ESG Club on November 11, 2022;
  • Risk Map and risk register with ESG risks approved;
  • a list of green purchases for the needs of the Company's office was determined;
  • approved the Environmental and Social Policy of KazAgroFinance;
  • the Company constantly conducts awareness-raising activities aimed at increasing the culture of responsible consumption of energy and water resources.
  • a waste paper collection point organized in the building of the Company's headquarters for subsequent transfer to specialized companies. For 2022, 2,382.4 kilograms of waste paper were handed over to a special enterprise;
  • ensuring transparency of competitive selection of candidates and equal employment opportunities. Candidates for the Company's vacant positions are selected using competitive selection procedures through internal and external competition with equal criteria for evaluating candidates;

KazAgroFinance will continue to implement ESG - oriented practices in the Company's business processes and apply positive experience in sustainable development.


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