PwC Kazakhstan presents the findings of the ESG Awareness Survey in the Eurasia region with data on Kazakhstan, Uzbekistan, Azerbaijan and Mongolia. This series of reports provides insights on the results of the ESG agenda implementation in companies in each of these countries.
ESG plays a significant role in long-term business sustainability, and over the past few years we have seen the growing relevance of the ESG agenda in the region, as well as the active involvement of companies in integrating ESG practices into business processes. The majority of companies recognize the importance of ESG factors, with the awareness levels ranging from 67% to 97%, and anticipate their continued relevance over time. This trend is primarily due to the regulatory developments that are increasingly focused on achieving the goals of the Paris Agreement and the UN SDGs, but also due to the voluntary and conscious commitment of companies to sustainable business principles.
Kazakhstan is making noticeable progress in the implementation and application of ESG practices by companies. According to the survey results, companies in Kazakhstan demonstrate a high degree of maturity in ESG integration, marked by developed ESG strategies, active management involvement and comprehensive non-financial reporting practices. However, there still exist barriers towards meaningful ESG integration: lack of experience, budget constraints, and legal and regulatory challenges. To overcome them and promote ESG initiatives, companies need regulatory support, financial assistance, technical expertise and competencies in ESG management systems.
Regulatory changes in Kazakhstan make it possible to advance the sustainable development agenda in various sectors of the economy. Key regulatory documents include the Strategy on Achieving Carbon Neutrality by 2060, the new Environmental Code of the Republic of Kazakhstan, and a Taxonomy of green projects that will be financed through green bonds and green loans, which was adopted in 2021 by the Government of the Republic of Kazakhstan. It is worth noting that the implementation of ESG practices in the financial sector of Kazakhstan is carried out at an accelerated pace, including mandatory disclosure of ESG information for 2024 in accordance with the ESG Reporting Guidelines adopted by the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Markets.
42 companies from Kazakhstan spanning various sectors, such as financial, metals and mining, energy, retail and others, took part in the ESG Awareness survey. The total pool of respondents in the surveyed countries comprised 120 companies.
