In December 2020 at the Climate Ambitions Summit President of the Republic of Kazakhstan Kassym-Jomart Tokayev announced a new goal - Kazakhstan's achievement of carbon neutrality by 2060, confirming Kazakhstan's obligations under the Paris Agreement.
As part of measures to achieve carbon neutrality, the Strategy for Achieving Carbon Neutrality of the Republic of Kazakhstan until 2060 (hereinafter referred to as the Strategy) was approved. According to the Strategy, investments in the amount of 610 billion US dollars will be needed to achieve this goal.
Focusing on global trends and global challenges, being a key player in the private equity market in the country, Qazaqstan Investment Corporation (hereinafter - QIC) designated "Assistance in the development of sustainable business based on internationally recognized environmental, social and governing standards (ESG)" as one of its strategic objectives.
On April 28, 2023, as part of the transition to the "responsible" investment model, a strategic ESG session was held for QIC employees.
The session included a presentation of the main aspects of the concept of sustainable development and a number of practical tasks based on case studies.
Nicholas Page, Independent Director of QIC, addressed the participants of the Session with a welcoming speech.
Mr. Page noted the importance and necessity of "responsible" behavior among the investment community, and also stressed that work on the integration of ESG factors should be carried out in all business processes of the Corporation.
The Managing Director of QIC - Moldir Zhakanova and the Director of the Department of Strategic Development and International Cooperation - Miras Utepov spoke about the global agenda and global challenges in the field of sustainable development, raised issues related to climate change on Earth and environmental problems of Kazakhstan, and presented the results and plans for adapting the concept of responsible investment in the work of QIC.
"Responsible investing is an approach to investing that explicitly recognizes the importance for investors of environmental, social and managerial factors, as well as the long-term stability of financial markets.
According to Deloitte research, there is a steady growth in the volume of assets under management (AUM) integrating ESG principles in the world due to the growing demand of investors for this type of financial products.
At current growth rates, assets integrating ESG principles should account for half of all professionally managed assets worldwide by 2024.
The high rate of development of this trend is due to the visible positive effects, expressed in higher financial results, which are demonstrated by companies that have integrated ESG principles. At the same time, adherence to ESG standards in the company's investment activities helps to reduce risks, thus companies are better protected from market fluctuations in the short term and from the risk of depreciation of the value of assets in the long term.
QIC will continue to work on adapting sustainable development practices through joint work of the Corporation with portfolio companies for compliance with ESG standards at all stages of the investment process: from the search for project proposals to the exit from the project," shared the Managing Director of QIC, Moldir Zhakanova, with the participants of the session.
As part of the transition to the "responsible investment" model, in October 2022, QIC joined the UN Principles of Responsible Investments Association, becoming the first quasi-public financial institution in the CIS to join the leading international network of institutional investors committed to the concept of implementing ESG standards in their investment activities.
In April of this year, QIC joined the United Nations Global Compact (UN Global Compact), which in turn will contribute to the further implementation of the principles of corporate social responsibility, the implementation of joint educational, acceleration programs and the promotion of the ten universal principles and values of the United Nations among the stakeholders of the Corporation.
Since 2022, in order to increase corporate transparency in the field of non-financial reporting disclosure, QIC has been implementing information disclosure practices in accordance with the Guidelines for Sustainable Development Reporting of the Global Reporting Initiative GRI.