KMG Archives - SustainCase - Sustainability Magazine Insights on how you can protect the environment, maintain and increase the value of your company, through a structured CSR/Sustainability process with the use of the GRI Standards. Learn how Today's Best-Run Companies are achieving Economic, Social, and Environmental Success - and How You Can Too... Mon, 06 Mar 2023 10:04:40 +0000 en-US hourly 1 https://wordpress.org/?v=7.1 Case study: How KMG creates economic value for its stakeholders https://sustaincase.com/case-study-how-kmg-creates-economic-value-for-its-stakeholders/ Fri, 15 Apr 2022 06:07:23 +0000 https://ccprowebs.com/new-sustaincase.com/?p=13488 KMG (KazMunayGas) is the Kazakhstan operator for exploration, production, refining and transportation of hydrocarbons, representing the state interests in the oil and gas industry of Kazakhstan. In the course of its operating activities, KMG makes annual substantial contributions to improve the social and economic potential of the country and develop locations within the company footprint, creating economic value for a wide range of stakeholders. This case study is based on the 2019 Sustainability Report by KMG published on the Global Reporting Initiative Sustainability Disclosure Database that can be found at this link. Through all case studies we aim to demonstrate what […]

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]]> KMG (KazMunayGas) is the Kazakhstan operator for exploration, production, refining and transportation of hydrocarbons, representing the state interests in the oil and gas industry of Kazakhstan. In the course of its operating activities, KMG makes annual substantial contributions to improve the social and economic potential of the country and develop locations within the company footprint, creating economic value for a wide range of stakeholders.

This case study is based on the 2019 Sustainability Report by KMG published on the Global Reporting Initiative Sustainability Disclosure Database that can be found at this link. Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.

Abstract

KMG is firmly committed to contributing to Kazakhstan’s economy and to generating sustainable economic value for all its stakeholders  Tweet This!, through a number of ways. In order to create economic value for its stakeholders KMG took action to:

  • contribute to the national budget
  • create economic value for employees
  • support Kazakh companies

What are the material issues the company has identified?

In its 2019 Sustainability Report KMG identified a range of material issues, such as employee-management relations, counteracting corruption, occupational health and safety, effluents and waste, non-discrimination. Among these, creating economic value for its stakeholders stands out as a key material issue for KMG.

Stakeholder engagement in accordance with the GRI Standards

The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:

“The reporting organization shall identify its stakeholders, and explain how it has responded to their reasonable expectations and interests.”

Stakeholders must be consulted in the process of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.

Key stakeholder groups KMG engages with:

Stakeholder Group
KMG employees
Shareholders
Investment community
KMG’s subsidiaries and associated companies
Local communities, public organisations
Partners, other organisations
Government, local authorities
Suppliers/providers/vendors
Trade unions
Customers
Associations
Mass media

How stakeholder engagement was made to identify material issues

To identify and prioritise material topics KMG engaged with its stakeholders through an online stakeholder survey prepared on the basis of the SurveyMonkey platform.

What actions were taken by KMG to create economic value for its stakeholders?

In its 2019 Sustainability Report KMG reports that it took the following actions for creating economic value for its stakeholders:

  • Contributing to the national budget
  • As one of the largest taxpayers in the covered geography, KMG makes its contribution to the national budget in the form of taxes and other payments. In 2019, KMG paid taxes and made other obligatory payments to the state revenue for the amount of KZT 1,522 billion (USD 4 billion).
  • Creating economic value for employees
  • KMG employs over 70 thousand people in Kazakhstan, providing them with a steady paycheck along with social assistance for them and their families. In 2019, KMG paid KZT 52 billion worth of social and pension contributions for its employees.
  • Supporting Kazakh companies
  • Participation in domestic manufacturer support programmes and increased local content in procurement remain among KMG’s top priorities. In 2019, the KMG Group procured KZT 2,004.7 billion worth of goods, work and services from Kazakh companies, or 94% of the total procurement. The local content in procurement was 81%.

Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?

The GRI Standard addressed in this case is: Disclosure 201-1 Direct economic value generated and distributed

Disclosure 201-1 Direct economic value generated and distributed corresponds to:

 

78% of the world’s 250 largest companies report in accordance with the GRI Standards

SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.

Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.

7 GRI sustainability disclosures get you started

Any size business can start taking sustainability action

GRI, ISEP, CPD Certified Sustainability courses (2-5 days): Live Online or Classroom  (venue: London School of Economics)

  • Exclusive FBRH template to begin reporting from day one
  • Identify your most important impacts on the Environment, Economy and People
  • Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP. 
  • Benchmarking methodology to set you on a path of continuous improvement

See upcoming training dates.
References:

1) This case study is based on published information by KMG, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original, please revert to the original on the Global Reporting Initiative’s Sustainability Disclosure Database at the link:

http://database.globalreporting.org/

2) https://www.globalreporting.org/standards/gri-standards-download-center/

Note to KMG: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us.

The post Case study: How KMG creates economic value for its stakeholders appeared first on SustainCase - Sustainability Magazine.

]]> Case study: How KMG promotes employee development https://sustaincase.com/case-study-how-kmg-promotes-employee-development/ Fri, 21 Aug 2020 06:00:19 +0000 https://ccprowebs.com/new-sustaincase.com/?p=11316 KMG (KazMunayGas) is a unique vertically integrated oil and gas operator that carries out a full production cycle from exploration and production of hydrocarbons, their transportation and refining to provision of specialised services, representing the interests of the state in the oil and gas industry of Kazakhstan. – both production and administrative personnel. This case study is based on the 2018 Sustainability Report by KMG published on the Global Reporting Initiative Sustainability Disclosure Database that can be found at this link. Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) […]

The post Case study: How KMG promotes employee development appeared first on SustainCase - Sustainability Magazine.

]]> KMG (KazMunayGas) is a unique vertically integrated oil and gas operator that carries out a full production cycle from exploration and production of hydrocarbons, their transportation and refining to provision of specialised services, representing the interests of the state in the oil and gas industry of Kazakhstan. Within the framework of capacity development, KMG pays special attention to the development of human resources  Tweet This! – both production and administrative personnel.

This case study is based on the 2018 Sustainability Report by KMG published on the Global Reporting Initiative Sustainability Disclosure Database that can be found at this link. Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.

Abstract

On an annual basis, KMG provides training and personnel development and, in 2018, trained 129 thousand people for a total of KZT 5,7 billion, which is 2.5 % higher than in the previous year. In order to promote employee development KMG took action to:

  • apply a new concept of personnel training and development
  • implement the Formula for Success Internship Programme
  • apply executive development programmes
  • train personnel reserve

What are the material issues the company has identified?

In its 2018 Sustainability Report KMG identified a range of material issues, such as investments in infrastructure of the presence regions, air pollutant emissions, staff health and safety, water use. Among these, promoting employee development stands out as a key material issue for KMG.

Stakeholder engagement in accordance with the GRI Standards              

The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:

“The reporting organization shall identify its stakeholders, and explain how it has responded to their reasonable expectations and interests.”

Stakeholders must be consulted in the process of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.

Key stakeholder groups KMG engages with:

Stakeholder Group
KMG employees
Shareholders
Investment community
Subsidiaries and affiliates of the Group
Local communities, community organisations
Partners, other organisations
Government, local government bodies
Suppliers
Trade unions
Customers
Associations

How stakeholder engagement was made to identify material issues

To identify and prioritise material topics KMG carried out an online survey of KMG management and external stakeholders.

What actions were taken by KMG to promote employee development?

In its 2018 Sustainability Report KMG reports that it took the following actions for promoting employee development:

  • Applying a new concept of personnel training and development
  • In order to improve the process of training and development, formation and maintenance of the required level of personnel qualifications, and the effective use of budgetary funds, a new concept of personnel training and development has been implemented in the Group of KMG companies since 2016: “70/20/10 – on-the-job training/internal training/external training”. As part of the introduction of the new training model, the Institute of internal trainers has been introduced as well as distance employee training programmes, an internship programme and executive development programmes for the Group of KMG companies.
  • Implementing the Formula for Success Internship Programme
  • KMG’s Formula for Success Internship Programme is popular among subsidiaries and affiliates in the manufacturing sector. Within the framework of the programme, employees exchange experience with colleagues from other companies of the KMG Group, as well as employees of partner companies. During the programme, more than 50 employees of KMG’s subsidiaries and affiliates passed internships at 5 partner companies, including employees of “Embamunaygas” JSC, “Oil Servises Company” LLP, and “Mangistaumunaygas” JSC. 53 employees from 9 companies completed internships in 6 companies of the KMG subsidiaries and affiliates. Additionally, there is a cooperation with the Corporate University ENI and employees of the KMG Group of companies are trained in production areas based on this university. In 2018, 15 employees of the block explored production and oilfield services underwent training at ENI University within 2 days. For the development of KMG Group employees, internships are also being held at the invitation of partner companies – JCCP, JOGMEC. Each year, these companies accept more than 20 employees of the KMG Group for training in various areas of activity from mining, exploration, processing and marketing to HR and finance management. Training takes place on average from two weeks to one month together with representatives of different countries in related areas, which also allows sharing experience and knowledge. Together with the General Electric company, KMG has also put together a training programme on “Oil and Gas Technologies” at the Oil and Gas University of GE (Florence, Italy). Since 2015, during the cooperation in this area, 7 employees of the KMG Group have been trained. Duration of training is 5 months.
  • Applying executive development programmes
  • KMG pays special attention to executive development programmes. In 2017, by the decision of the KMG Personnel Committee, the development programmes for the top managers of the KMG corporate centre and subsidiaries and affiliates (CEO-1, CEO-2) “Unified Development Program” were approved, as well as for the directors and their deputies and for the participants of the Unified Personnel Reserve “Effective Manager”. The unified development programme was completed in 2018 and received good feedback; 99 top managers from 26 subsidiaries took part in the programme from September 2017 to October 2018. In addition, in 2018, the Human Capital Development Programme of the UPSTREAM block was developed and implemented in pilot mode in the “Kazakhturkmunay” LLP and “Kazakhoil Aktobe” LLP. Within the framework of this Programme, participants developed projects that will raise the companies’ effectiveness. In 2019, this Programme was to be implemented at other UPSTREAM companies. During the passage of the programme, all relevant areas of human resources development were covered such as digital leadership, influence and emotional leadership.
  • Training personnel reserve
  • One of the priorities of the long-term development of KMG is the training of personnel reserve, which includes search and identification of young and promising leaders with the purpose of training managers of new format with modern competencies. The main principle is the purposeful and systematic training of leaders to ensure continuity of management, as well as the provision of employees with opportunities for development and career growth in the Group of KMG companies. In addition to training programmes specifically for reservists, two-diploma EMBA (Executive MBA) programmes are also developed and carried out. In total, over the period of the project implementation, 35 employees of the Unified Personnel Reserve included in the EQF (European Qualifications Framework) completed the EMBA programme and another 14 employees continued their education under a similar programme for 2018–2019. Also, during the EQF project, three meetings of reservists were held, which were team building and training. To enhance personal and business skills, thematic trainings and seminars are also systematically carried out.

Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?

The GRI Standards addressed in this case are:

1) Disclosure 404-1 Average hours of training per year per employee

2) Disclosure 404-2 Programs for upgrading employee skills and transition assistance programs

 

Disclosure 404-1 Average hours of training per year per employee corresponds to:

 Disclosure 404-2 Programs for upgrading employee skills and transition assistance programs corresponds to:

 

78% of the world’s 250 largest companies report in accordance with the GRI Standards

SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.

Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.

7 GRI sustainability disclosures get you started

Any size business can start taking sustainability action

GRI, ISEP, CPD Certified Sustainability courses (2-5 days): Live Online or Classroom  (venue: London School of Economics)

  • Exclusive FBRH template to begin reporting from day one
  • Identify your most important impacts on the Environment, Economy and People
  • Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP. 
  • Benchmarking methodology to set you on a path of continuous improvement

See upcoming training dates.
References:

1) This case study is based on published information by KMG, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original, please revert to the original on the Global Reporting Initiative’s Sustainability Disclosure Database at the link:

http://database.globalreporting.org/

2) https://www.globalreporting.org/standards/gri-standards-download-center/

Note to KMG: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us.

The post Case study: How KMG promotes employee development appeared first on SustainCase - Sustainability Magazine.

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