Corporate communications strategy

Interaction with stakeholders is essential for “Samruk-Energy” JSC.

The purpose of “Samruk-Energy” JSC interaction with stakeholders is to choose the right strategic development of the Company and ways to improve its operations, as well as to assist it in achieving such a level of sustainable development, from which everyone benefits both the Company and its stakeholders, and society, as they can know, determine and analyze:

• needs, expectations and opinions of internal and external stakeholders;
• challenges and prospects from the perspective of stakeholders;
• the most significant issues of concern to internal and external stakeholders.
• The interaction of the Company with stakeholders is based on the following principles:
• respect and consideration of the interests, opinions and preferences of stakeholders;
• timely and regular informing of stakeholders;
• responsible discharge of obligations assumed.

The basis for interaction with stakeholders is the identification of stakeholders that have a significant impact on the Company and the degree of dependence of stakeholders on the Company, creation of a materiality matrix, a Stakeholder Engagement Plan and/or a Stakeholder Communication Plan.

“SAMRUK-ENERGY” JSC STAKEHOLDER MAP

In accordance with the best practices in interaction with stakeholders (standards of the AA1000 series, GRI), the principle of “involvement” is applied to build effective interaction.

This principle considers the interests of all stakeholders at all stages of the process of managing the Company's operations.

The principle of “involvement” is based on three main principles of interaction:

• "materiality" (correct assessment of the significance of problems for stakeholders and the organization),
• "completeness" (understanding the significance of consequences of the company's operations);
• "response" (demonstration of an adequate response).

Following each principle is aimed at comprehensive, mutually beneficial, and effective interaction with stakeholders.

The group of companies of Samruk-Energy JSC shares the main provisions of the precautionary principle. Before launching new projects and facilities, as part of the environmental impact assessment, the Company must take a number of measures aimed at informing the public about the planned activity and its possible impact, in order to identify public opinion and take it into account in the impact assessment process. All activities are included in the Stakeholder Engagement Plan, monitoring is carried out for each of the projects, the results of which are annually reported to the Board of Directors.

In order to improve the efficiency of communications and constructive dialogue with all stakeholders, Samruk-Energy JSC updated the Stakeholder Engagement Plan in 2021.

The updated Stakeholder Engagement Plan of Samruk-Energy JSC describes the principles of the Company's interaction with stakeholders, the Company's approach to identifying and analyzing stakeholders, requirements for stakeholder engagement, a grievance mechanism and stakeholder engagement activities.

You can learn more about the Plan on “Samruk-Energy” JSC website at the link: https://www.samruk-energy.kz/ru/corporate-governance/corporate-documents#6.

The plan is based on the Stakeholder Map and stakeholder engagement practices. The activities of “Samruk-Energy” JSC Stakeholder Engagement Plan in 2021 were implemented in full (Attachment 1).

Subsidiaries and affiliates studied the approved Stakeholder Engagement Plans, which are based on “Samruk-Energy” JSC Stakeholder Engagement Plan (SEP), in 2021 for the current investment projects:

"APP" JSC:

1. Expansion of CHP-1 with installation of a new energy source based on gas turbine technologies.
2. Gasification of Almaty energy complex. Retrofit of Almaty CHP-2 including of reduction of environmental footprint.
3. Reconstruction of CHP-3.

"MHPP" JSC:

4. Diversion of the Kensu River flow to the Bestyubinsk reservoir of “Moynak HPP named after U.D. Kantaev”.

"AZhC" JSC:

5. Construction of 110 kV substation "Kokozek" with connection to the OS-110 kV of the 220 kV substation "Kaskelen" of Karasai district in Almaty region.

"EWP" LLP:

6. Construction of a 50 MW wind farm in the vicinity of Yereymentau city.

“Energia Semirechya” LLP:

7. Construction of a 60 MW wind power plant in Shelek corridor including a possible increase in capacity up to 300 MW.

The Road Map for obtaining an ESG rating was approved by the resolution of “Samruk-Energy” JSC Management Board (No.9 dated March 14, 2022).

To this end, the Company plans to conduct the work on assessment and implementation of the best ESG practices in the nearest future, which include:

• analysis and updating of documents/policies for compliance with ESG criteria (Environmental policy, Occupational health and safety policy, documents on social responsibility, stakeholder engagement, policy on quality and safety of products/services, human rights, etc. .d.), development of non-financial reporting;
• assessment of the Company's risks associated with climate change;
• setting requirements for suppliers with the use of ESG criteria;
• monitoring the compliance of the Company's operations with the requirements of PRI – Principles for Responsible Investment (UN principles for responsible investment) to attract investment;
• establishment of ESG criteria along with standard financial analysis – assessment of both ESG risks and opportunities;
• staff motivation and remuneration system development, associated with ESG criteria.

Thus, the Company intends to regularly improve its performance in sustainable development and aims to achieve the goals set out in the Strategy from the perspective of ESG principles (ESG goals are described in relevant sections: “Corporate Governance”, Category “Environmental”, Category “Social").

Stakeholder feedback mechanism

It is essential for the Company that all external and internal stakeholders are heard. “Samruk-Energy” JSC has the below mentioned feedback tools for stakeholders that guarantee protection from retaliation and prosecution of anyone who leaves a message in good faith:

1. Hotline 24/7 : https://www.samruk-energy.kz/ru/navigation-and-support/hotline
   Website: www.sk-hotline.kz
   Postal address: sk.hotline@deloitte.kz
   Phone: 8 800 080 19 94
2. Feedback form on the corporate website  https://www.samruk-energy.kz/ru/feedback-all
3. Feedback form for the category of persons associated with the implemented investment projects, where local communities, contractor employees, or persons related to the project can express their opinion: https://www.samruk-energy.kz/ru/obrat
4. Feedback for shareholders and investors. Investor Questionnaire : https://www.samruk-energy.kz/ru/shareholder/ independent-registrar
5. Appeals on emerging issues with contact details on the website: https://www.samruk-energy.kz/ru/company/contact
6. Ombudsman
   By e-mail:  akylov@samruk-energy.kz
   By phone:  8 (7172) 55-30-15, +7-701-788-8416
7. Blog of the Chairman of the Management Board: https://www.samruk-energy.kz/ru/navigation-and-support/chairmans-blog

The Company monitors incoming requests every year. This enable the Company to study the concerns of all stakeholders, identify systemic problematic issues, and determine the effectiveness of existing mechanisms for stakeholder engagement for a follow-up response.

Appeals and inquiries statistics***

Mentioned appeals were analyzed in terms of aspects raised, determination of the regions with the largest number of appeals, categories of persons who submitted an appeal to “Samruk-Energy” JSC group, statistics on the subject of appeals and analysis of complaints. Each complaint was assigned a category.

There is a trend of steady growth in the receipt of applications and complaints. The share of open requests is moderate (in 2021 – 76%; in 2020 – 84%), the share of anonymous requests increased by 10% compared to 2020 (in 2021 – 18%, in 2020 anonymous requests amounted to – 8%). Stakeholders, in 2021, were interested in the issues of wages, remuneration and payments set out in Collective Agreement. Most often, stakeholders expressed an interest in the issue of wage increases. In 2021, stakeholder interest in issues related to workplace and work management during a pandemic was noted for the first time; this is the provision of protective equipment and violation of quarantine measures, as well as mandatory vaccination issues.

All incoming requests to the Company were answered in a timely manner. Responses were provided in ways convenient for stakeholders. Confidentiality and anonymity of appeals were maintained. No facts of harassment were reported.

The conclusions made based on the stakeholders' appeals and inquiries, were communicated at the Company’s Board of Directors meeting, where recommendations on improvement of stakeholder engagement were made and actions were developed.