KEGOC JSC actively works to minimize the impact of its operations on atmosphere air.

The Company uses equipment and technologies that, in most cases, are not associated with direct atmospheric emissions, such as KEGOC JSC’s core activity involves the transmission of electric power via high-voltage transmission lines.

In accordance with the decision of the authorized environmental protection body, all branches of the MES are classified as Category IV facilities, for which emission standards are not subject to establishment.

Due to a systematic approach to managing the technical condition of vehicles, KEGOC JSC achieved a reduction in atmospheric emissions in 2024.

In its operations, the Company does not emit ozonedepleting substances that contribute to climate change.

Climate Strategy and Low-Carbon Development

Climate change and the need to transition to a low-carbon economy are among the key challenges of our time. KEGOC JSC addresses these challenges across all aspects of its operations, systematically integrating climate measures into its strategic and operational management. Climate-related issues occupy a central place in corporate governance and are reflected at all levels, including the Board of Directors and its committees.

The foundation for the Company’s climate action is based on programs developed in accordance with the Paris Agreement, Kazakhstan’s Strategy for Achieving Carbon Neutrality by 2060, the recommendations of the TCFD, the GHG Protocol, as well as with reference to IPCC climate strategies and IEA energy scenarios:

• “KEGOC Climate Program for 2025–2060”.
• “KEGOC Low-Carbon Development Program until 2031 and vision for achieving carbon neutrality by 2060”.

The transition to low-carbon development includes the following measures:

• gradual replacement of ICE vehicles with electric vehicles (Scope 1);
• increasing the share of purchased green electricity (Scope 2);
• development of digital solutions (Smart Grid), conducting energy audits, equipment modernization, promoting resource efficiency (Scope 1 and Scope 2);
• implementation of current green projects (Scope 2): Integration of the power system of Western Kazakhstan with the UPS of Kazakhstan; Construction of transmission facilities; Strengthening the power grid of the Southern zone of Kazakhstan’s UPS;
• implementation of prospective green projects (Scope 2): Strengthening the external power supply scheme of Astana; Construction of transmission facilities to enhance the transit potential and throughput of the UPS of Kazakhstan; Construction of the 500 kV Karaganda – Zhezkazgan – Kyzylorda – Shymkent transmission line; Strengthening the Western power hub through the construction of the 500 kV Karabatan – Beineu – Mangystau transmission line; Integration of the Western zone with the UPS of Kazakhstan (Phase II).

KEGOC considers climate risks and opportunities across different time horizons and has established indicators for achieving low-carbon development targets:

• Short-term (until 2025): implementation of pilot projects such as energy storage systems (ESS), execution of the Energy Saving Plan, and implementation of monitoring.
• Medium-term (until 2031): achievement of target indicators:
  • Scope 1 reduction – phased replacement of passenger vehicles with ICEs by low-carbon alternatives (electric vehicles, LPG), reducing direct GHG emissions by 3% from the baseline year;
  • Scope 2 reduction – increasing system resilience, implementing the national scheme to support RES projects in accordance with legislation and/or bilateral contracts with operating and prospective RES facilities to achieve a 20% share of green electricity in the purchased energy mix.
• Long-term (until 2060): achieving carbon neutrality, full adaptation of infrastructure:
  • Scope 1 reduction – by 58% from the baseline year;
  • Scope 2 reduction – by 100% from the baseline year.

Climate KPI

Special attention in the management incentive system is given to sustainability and climate management. ESG KPIs approved for 2024 include:

1. “Implementation of the ESG Compliance Plan”, which provides for measures to manage negative climate impacts, reduce climate risks, and implement environmental initiatives;
2. “Implementation of priority investment projects”, aimed at ensuring effective integration of increasing volumes of RES generation into the power system, with the share of RES expected to reach 50% by 2050;
3. **“Implementation of the project ‘Development of algorithms in the Centralized AFPC system for the management of energy storage systems (ESS)’” to support KEGOC’s core function of ensuring system reliability and enabling effective integration and regulation of intermittent RES generation.

These initiatives represent KEGOC’s contribution to achieving Kazakhstan’s carbon neutrality goal by 2060.

Risk and Opportunity Assessment

As part of climate modeling up to 2060, KEGOC quantified the consequences of physical risks (temperature increase, floods, extreme winds). Without adaptation measures, potential financial losses could reach KZT 261 billion. The estimated volume of investments in infrastructure adaptation (facility strengthening, monitoring, modernization of cooling systems, and introduction of intelligent control systems) amounts to more than KZT 314 billion during 2030–2060; these measures are aimed at significantly reducing the vulnerability of the power system.

The Company also sees significant opportunities: development of Smart Grid and ESS, including a 5 MW pilot project, which creates preconditions for mass integration of RES and increased grid flexibility. According to the Climate Program, with annual investments of around KZT 4 billion (starting from 2030), modernization and energy efficiency measures could deliver a potential economic effect of KZT 5–10 billion annually starting from 2031.

The results of the modeling are used in KEGOC’s investment planning to strengthen infrastructure resilience and support low-carbon development.

¹ GHG emissions of KEGOC are verified by a third party as part of the independent assurance of the 2024 Annual Report.

KEGOC is considering the possibility of starting to disclose Scope 3 greenhouse gas emissions from 2027, following the completion of methodology development and data collection processes in line with the GHG Protocol.

¹ GHG emission reduction volumes of KEGOC are verified by a third party as part of the independent assurance of the 2024 Annual Report.

In addition to reducing its own GHG emissions, KEGOC has joined the global Utilities for Net Zero Alliance (UNEZA), officially launched at COP28 in Dubai under the auspices of IRENA and the UN Climate Champions. The Alliance unites 25 leading utilities worldwide, serving over 250 million consumers, with the goal of accelerating the energy transition and achieving carbon neutrality by 2050. Within UNEZA, KEGOC will support the development of grids ready for RES integration, modernization of energy infrastructure, and strengthening international cooperation to remove barriers to decarbonization.