The next meeting of the Parliamentary Commission for monitoring the implementation of national goals and objectives in the field of sustainable development of the Republic of Kazakhstan was held today in the Senate under the chairmanship of Speaker of the Chamber Maulen Ashimbayev. During the meeting, the participants discussed the implementation of ESG principles - environmental, social and management practices to achieve the SDGs in the business environment.
The members of the parliamentary commission and invited experts noted that the implementation of ESG principles is becoming particularly relevant in achieving the Sustainable Development Goals, since they cover environmental, social and managerial aspects of enterprises. In particular, they imply active involvement in the business process. Despite this, there is no common understanding of the possibilities and prospects of their implementation in production in Kazakhstan today. According to the results of the research conducted by the Bureau of National Statistics, 88% of the surveyed companies are not familiar with the ESG criteria.
As noted by Maulen Ashimbayev, the very low environmental responsibility of companies is of serious concern. The result is negative environmental consequences.
"Ignoring the ESG principles entails numerous risks to the economy, reputation and financial stability of enterprises and the country as a whole. The recent fire in the Mangystau region and the breakthrough of the Kazzinka tailings dam have led to significant environmental consequences. This is both the release of methane and an increase in the concentration of nitrates in rivers. In this regard, the question arises, how effectively are the norms of tax legislation implemented to prevent negative environmental impacts from industrial enterprises? At the meeting, we will discuss these and other issues in a meaningful and substantive way with experts and representatives of the business sector," Maulen Ashimbayev said in his speech.
The social principles of ESG, including the protection of human rights, ensuring equal career opportunities, and gender equality, were also noted during the meeting. For example, half of the leading companies in the integration of ESG principles do not have those responsible for this area of sustainable development, which, according to the participants of the meeting, contradicts international practice.
Following the discussion, representatives of government agencies and experts voiced recommendations and initiatives for further joint work, the implementation of which, as noted by Maulen Ashimbayev, will be under the control of the public and deputies of the Senate Committee on Economic Policy, Innovative Development and Entrepreneurship. At subsequent meetings of the interparliamentary commission, the effectiveness of the work carried out will also be analyzed.
"As part of the upcoming review of the new Tax Code, we must provide special conditions for companies actively implementing the sustainable development agenda, the ESG agenda. An important issue is "green financing". Therefore, parliamentarians, together with representatives of government agencies, should consider the legislative framework for more effective "green financing". The AIFC, KASE, and some of the backbone banks of our country also need to be actively involved in this work. This is a lot of work that we all need to do. In general, business today knows little about the goals and principles of sustainable development, about ESG standards. In this regard, we need systematic business support, both informational and methodological. I hope that following the results of today's meeting we will take concrete steps in this direction," the Speaker of the Senate stressed and called on representatives of business and government agencies to take into account the issues raised in further work.
At the meeting of the parliamentary commission, along with deputies of the Senate and the Mazhilis, Minister of Labor and Social Protection Svetlana Zhakupova, First Vice Minister of National Economy Timur Zhaksylykov made reports. The assessment of the situation and proposals regarding the implementation of ESG principles were also voiced by Gabit Musrepov, Head of ESG KPMG Caucasus and Central Asia, Yerlik Karazhan, Director of ESGQ Rating Agency, Yulia Yakupbaeva, Chairman of the Council for Sustainable Development and ESG NPP Atameken, Director for Sustainable Development of Freedom Holding Corp. Baglana Musina, Director for Sustainable Development of Kazakhmys Corporation LLP Saken Shayakhmetov, CEO of Siemens Kazakhstan Dias Asanov, CEO of Eurasian Group LLP Serik Shakhazhanov and others.
(Senate Press Office, 74-72-27. Photo by N.Baibulin)
