Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Economic Aspects
• Environmental Aspects
• Social Aspects
• Specific topics in the banking sector

Environmental Achievements

• Reduced Scope 1 emissions by 11.5%
• Reduced Scope 2 emissions by 4%
• Reduced coal consumption by 30% through switching to greener energy sources
• Reduced paper consumption by 3%, saving more than 1,000 trees

Social Achievements

• Launched concessional lending programs for young entrepreneurs ("Zhas Halyk") and women entrepreneurs, allocating KZT 1 billion and KZT 3 billion respectively.
• Increased employee salaries by an average of 15%
• Allocated KZT 2.3 billion for charity and social events
• Implemented the "Invataxi" project, providing 15 specialized cars for disabled citizens.

Governance Achievements

• Achieved top ranking among Kazakhstan's private banks in terms of information disclosure and corporate governance development.
• Adopted the Corporate Social Responsibility (CSR) Policy.
• Improved the risk management system.
• Implemented a number of regulations of the UK corporate governance code.

Climate Goals & Targets

Environmental Challenges

• High paper consumption
• High plastic consumption due to increased number of payment cards
• Water scarcity in certain regions of Kazakhstan
• Compliance risks

Mitigation Strategies

• Implemented measures to optimize paper document flow, reducing consumption by 3%
• Implemented measures to improve energy efficiency and reduce energy consumption by 5%
• Installed water meters in all Bank facilities and monitored plumbing devices
• Implemented a three-level security system and conducted regular employee training on compliance control.

Supply Chain Management

Responsible Procurement

• Minimizing total costs, ensuring fair competition and transparency in procurement processes, and providing equal opportunities for suppliers.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option

Awards & Recognition

• Best Bank in Kazakhstan in trade finance by Global Finance magazine

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• 6% year-on-year reduction in Scope 1 emissions
• 2% year-on-year reduction in Scope 2 emissions
• 2% year-on-year reduction in water consumption
• 10% year-on-year reduction in paper consumption (equivalent of 3,000 trees saved)
• 4% year-on-year decrease in coal consumption
• Planted more than 1,500 trees, 3,000 shrubs, and 2,300 ground-cover plants

Social Achievements

• Revised incentive system and increased salaries in 2021
• Supported initiatives to improve the environment and clean air basins in Nur-Sultan and Almaty
• Provided interest and collateral-free loans to city residents to connect houses to the gas supply network in Nur-Sultan
• Purchased 11 emergency shelters, 18 solar batteries, and one unmanned aircraft for the Ministry for Emergency Situations in Almaty
• Supported talented IT students in leading higher educational institutions through Halyk Academy
• Provided assistance to families in need to prepare children for primary school and to World War Two veterans

Governance Achievements

• Published a sustainability report for 2020
• MSCI ESG Research upgraded Halyk Bank’s sustainability rating from ‘B’ to ‘BB’
• Approved numerous policies aimed at embedding sustainability in the corporate governance system
• Devised and approved a new version of the rules for preparing documents related to calling and conducting Board meetings, reducing printed materials by 68%
• Drafted and approved key internal documents: policies on sustainability, on the environment, and on supporting the freedom of associations
• Expanded Board of Directors’ functional responsibilities to include integrating sustainability elements into the Bank’s strategy

Climate Goals & Targets

Environmental Challenges

• Unprecedented challenges (not specified)
• Growing global trend of higher staff turnover
• Architectural and technical limitations in branch accessibility for people with disabilities
• Insufficient dormitory space for students
• Oil pollution impacting land in Mangistau region
• Air pollution in Kazakhstan's largest cities

Mitigation Strategies

• Launched a range of projects to address challenges (not specified)
• Introduced a hybrid work format (remote and office work) to improve employee convenience
• Working to increase branch accessibility and expand online services
• Financing projects to build and renovate student dormitories
• Provided financing for soil reclamation and oil recovery equipment
• Supported projects to improve the environment and clean air basins, and provided interest-free loans for gas network connections

Supply Chain Management

Responsible Procurement

• Minimising total costs, ensuring fair competition and transparency, providing equal opportunities for suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option, Kazakhstan Stock Exchange (KASE) listing rules, London Stock Exchange (LSE) recommendations

UN Sustainable Development Goals

• 11 of the 17 UN Sustainable Development Goals

The report mentions the alignment with 11 SDGs but doesn't specify which ones.

Sustainable Products & Innovation

• Green loans

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Corporate Governance
• Responsible Finance
• Social Impact

Environmental Achievements

• 8.5% year-on-year reduction in Scope 1 emissions
• 29% year-on-year reduction in paper consumption
• 5.6% year-on-year decrease in the use of plastic (from payment cards)
• 7% year-on-year decrease in coal consumption

Social Achievements

• Launched Halyk Club and other ecosystem products for customers
• Revised incentive system and increased salaries in 2022 to support employee wellbeing
• Implemented lending program to support women’s entrepreneurship (KZT5 billion in financing from 2018-2022)
• Allocated more than KZT6 billion for charitable purposes in 2022

Governance Achievements

• Adopted Sustainability Policy and Action Plan for Introducing Sustainability Principles and Goals for 2022-24
• Restructured Social Committee as the Sustainability Committee
• Adopted new Code of Ethics, Anti-corruption Policy, Environmental Policy, Freedom of Association, Collective Bargaining, and Diversity and Inclusion Policy and Personal Data Collection, Processing and Protection Policy
• Became the first bank in Kazakhstan to sign up to the UN Global Compact in January 2023

Climate Goals & Targets

Environmental Challenges

• Decreased customer satisfaction index (CSI) in 2022 due to geopolitical tension, sanctions on Russia, and tightening lending conditions
• Increase in water consumption (10.5%) due to commissioning of new buildings
• 0.3% year-on-year increase in Scope 2 emissions

Mitigation Strategies

• Implementing measures to reduce paper and plastic consumption
• Developing tools and mechanisms to assess indirect environmental impact (Scope 3)
• Adopting a Responsible Finance Policy, Methodology for Classifying Funded Activities by ESG Criteria, Self-Declaration Questionnaire and Tool for Evaluating Funded Activities
• Integrating ESG principles into risk management system

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Prioritizes Kazakh suppliers (95% of procurement value in 2022)

Climate-Related Risks & Opportunities

Physical Risks

• Increased average annual temperature
• Growing fire hazards
• Decreased water availability
• Increased frequency and intensity of adverse climate events

Transition Risks

• Carbon regulation and pricing
• Kazakhstan's carbon neutrality targets

Opportunities

• Financing low-carbon projects
• Supporting customers' decarbonization journeys

Reporting Standards

Frameworks Used: TCFD, GRI

Certifications: ISO 27001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 2
• Goal 3
• Goal 4
• Goal 5
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 11
• Goal 12
• Goal 13

The Bank's initiatives contribute to these SDGs through investments in socioeconomic development, support for entrepreneurship, green financing, and social projects.

Sustainable Products & Innovation

• Digital loans
• Ecosystem products reducing paper and plastic use

Awards & Recognition

• Asiamoney's Best ESG Bank and Best Bank for Diversity and Inclusion (2022)
• KASE's Best ESG Report for 2021

Environmental Metrics

ESG Focus Areas

• Responsible Financing
• Environment
• People and Society
• Corporate Governance

Environmental Achievements

• Reduced coal consumption by 48.8% year-on-year, bringing its share in total energy consumption to less than 1%
• Reduced direct greenhouse gas emissions (Scope 1) by 19.5% year-on-year
• Reduced indirect emissions (Scope 2) by 1.9% year-on-year
• Reduced paper consumption by 10.8% year-on-year
• Reduced share of physical cards issued from 44% to 40%

Social Achievements

• Launched "Reuse. Recycle. Reduce" sustainable fashion and art campaign
• Financed natural gas connection for over 200 homes in Almaty and Astana
• Implemented numerous charitable initiatives supporting education, child protection, national culture, and sport
• Provided over KZT7 billion in loans to over 600 Kazakh women entrepreneurs through the Women in Business program
• Allocated KZT6.5 million to sponsor the Women in Business forum

Governance Achievements

• Joined the UN Global Compact
• Adopted Responsible Finance Policy, Methodology for ESG Segmentation of the Loan Portfolio by Industry, Methodology for Calculating the Carbon Footprint of the Corporate Segment of the Loan Portfolio, and Green Finance Policy
• Upgraded ESG rating from 'BB' to 'BBB' by MSCI ESG Research
• Improved corporate governance practices, privacy, and data security

Climate Goals & Targets

Environmental Challenges

• Increased water consumption due to commissioning of new buildings and employees returning to offices
• Increased customer enquiries concerning fraudulent transactions
• Climate-related risks such as floods, landslides, mudflows, forest and steppe fires, drought, and other natural phenomena
• Transitional climate risks associated with carbon regulation and pricing

Mitigation Strategies

• Implemented Green Office principles to conserve resources
• Improved information security systems and processes to prevent data breaches
• Developed additional criteria to extend financing for borrowers affected by adverse weather
• Restructured loans for borrowers affected by floods
• Developed methodologies for calculating carbon footprint and ESG scoring

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Prioritizes Kazakh suppliers (94.4% of procurement value)

Climate-Related Risks & Opportunities

Physical Risks

• Floods
• Landslides
• Mudflows
• Forest and steppe fires
• Drought

Transition Risks

• Carbon regulation and pricing

Opportunities

• Financing renewable energy projects
• Developing energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards, TCFD guidelines

Certifications: ISO 27001:2013

Third-party Assurance: Ernst & Young Advisory LLP

UN Sustainable Development Goals

• Goal 2
• Goal 3
• Goal 4
• Goal 5
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 11
• Goal 12
• Goal 13

Initiatives contribute to these goals through responsible financing, environmental protection, social programs, and corporate governance

Sustainable Products & Innovation

• Green loans
• Digital loan products
• Electric vehicle loan product

Awards & Recognition

• AIFC "Best Green Investment Bank" award