Production waste at KEGOC JSC is generated during the operation, maintenance, repair, and modernization of equipment. All waste management processes are organized in accordance with the requirements of the Environmental Code of the Republic of Kazakhstan, the principles of sustainable development (ESG), and implemented in the Environmental Management Guide and the corporate standard “Waste Management”.

The waste management system covers all of the Company’s activities, including its branches and contractors, in line with contractual obligations and the Supplier Code. This ensures a unified approach to waste management both at KEGOC’s operating facilities and during the planning and implementation of new projects.

KEGOC JSC is gradually introducing extended oversight practices for contractors in the field of waste management. Going beyond regulatory requirements, and in order to enhance transparency and environmental responsibility in line with ESG principles, since 2024 KEGOC JSC has required contractors to provide reports on the methods of treatment and final disposal of transferred waste.

Production waste at KEGOC JSC is directly linked to the development and maintenance of the National Power Grid. Waste volumes are largely determined by equipment replacement cycles and regulatory requirements for the materials used, which limits the Company’s ability to significantly reduce the amount of waste generated. Nevertheless, KEGOC JSC consistently implements measures to reduce environmental impact: extending equipment life through R&D-based solutions, developing separate collection systems, and ensuring the transfer of waste for recycling, thereby reducing waste volumes and improving the reliability of grid operations.

The transfer of hazardous waste to third parties is carried out under a license for waste recycling, neutralization, utilization, and/or disposal.

KEGOC JSC does not carry out independent waste recycling. At the same time, the Company ensures a full cycle of safe waste management: organizing collection, certification, temporary separate storage at specialized sites, transfer to third parties for recycling and utilization, as well as monitoring the fulfillment of contractual obligations. Waste transfer is carried out in strict compliance with the legislation of the Republic of Kazakhstan.

Total volume of waste generated by KEGOC JSC, tonnes*

*Data on waste volumes, including information on disposal, recovery, and other treatment methods, have been assured by a third party (PwC) as part of the independent verification of the 2024 Annual Report.

Long-term dynamics demonstrate a decrease compared to 2020 (5,117 tons versus 3,587 tons in 2024), reflecting KEGOC JSC’s systemic efforts to reduce waste. At the same time, the nature of waste and regional differences in recycling infrastructure do not allow for the establishment of unified KPIs for waste reduction or recycling. In this regard, the Company focuses on systemic waste management processes: annual internal and external audits, development of separate collection, and increasing transparency of contractors’ activities. Since 2024, KEGOC JSC has introduced a four-container collection system for paper, plastic, used batteries, as well as a combined container for glass and tin cans. This system enables waste to be directed for recycling, reducing landfill load and mitigating negative environmental impacts.

Audit and Control The waste management system provides for audits, measures to reduce waste generation, and the transfer of waste for recycling, disposal, or recovery. Responsibility for waste management and reporting lies with the Occupational Health and Industrial Safety Department. Quarterly reporting by branches is required, monitoring of activities is conducted on a semi-annual basis, and results are reviewed annually at the executive management level. Each Company facility undergoes an annual waste management audit, including verification of temporary storage conditions, sorting, and record-keeping. In addition, waste management is assessed during external audits under the certified Environmental Management System ISO 14001.

Innovation and R&D for Waste Minimization In order to reduce cable scrap and other waste, in 2024 the Company conducted a study on the need for grounding of shielding sheaths of control cables at substations with microprocessor-based relay protection and automation (RPA) devices and implemented its results. The developed requirements extend the service life of cables and RPA devices, thereby significantly reducing waste generation while simultaneously improving equipment reliability.

Training and Employee Engagement To enhance awareness and engagement, the Company’s employees receive regular training in waste management. The following activities were carried out:

• corporate training of branches on amendments to the Environmental Code of the Republic of Kazakhstan, including practical workshops on waste management (2024);
• seminar on “Fundamentals of Sustainable Living and Zero Waste Principles. Green Office and ESG Principles” (2024) for employees of the Executive Directorate and branches;
• campaigns and challenges under the “Taza Kazakhstan” program: “Car-Free Day,” “Plastic-Free Day”;
• drawing, essay, and video contests on environmental topics for the children of KEGOC JSC employees.

Contractor personnel are also informed on waste management issues, both as part of initial induction and during subsequent activities at the Company’s facilities.

In 2025, the «Aktobe MES» branch was awarded the Smart Plastic Zone Gold Badge, confirming its commitment to environmentally responsible plastic management.