UN Sustainable Development

According to the definition of the Food and Agriculture Organization of the United Nations (FAO), agribusiness is considered as "a collective entrepreneurial activity that is carried out from farm to fork." In other words, it covers the entire production chain from the farmer to the consumer, creating an extensive structure of stakeholders.

Therefore, analyzing direct economic indicators such as profit margins, diversification of production and productivity growth, within the framework of the sustainable development report, it is also important to assess the indirect impact of the company's activities on the socio-economic development of the regions as a whole, taking into account factors of food and environmental safety, as well as the impact on the local population and natural resources, such as land, water, bioresources, etc.

As part of the implementation of the strategy "Kazakhstan — 2050", the task was set to develop a new inspection responsible for the water resources of our country. The agro-industrial complex is undergoing a comprehensive transition to moisture-saving technologies. According to the Development Strategy of JSC NUHBaiterek“, established by the Election Commission of the Government of the Republic of Kazakhstan dated 11/30/2021 No. 849, it is necessary to give preference to projects that are envisaged by the UN SDGs and have a significant impact on the sustainable socio-economic development of the Republic of Kazakhstan.

In order to consolidate a system that includes security management, taking into account the requirements of the UN Global Compact, the Principles of Responsible Investment of the UN, the Company takes into account the UN SDGs when crediting agribusiness projects, which are focused on:

Goal 6 of the UN SDGs, which aims to ensure the availability and natural use of water resources;
Goal 7 of the UN SDGs, which requires universal access to affordable, reliable, sustainable and affordable energy sources for all, including the use of inexpensive sources of solar, wind, and water energy;
UN SDG Goal 12, which calls for responsible production and consumption, including the natural use of natural resources such as water and soil, and the prevention of land degradation, improvement of soil fertility and prevention of water scarcity.

Due to the fact that these sustainable development goals are laid down in the documents of the State Planning System (Strategy "Kazakhstan-2050", Strategy of JSC "NUH "Baiterek"), the Company finances agro-industrial complex projects in order to minimize the harmful effects on the environment, environmental and social risks. These projects include the development and implementation of resource-saving technologies, sustainable water use, the introduction of measures to minimize the degradation of agricultural land, the use of organic fertilizers, the use of agrotechnologies in tillage of pasture lands and the creation of new jobs with an increase in rural incomes.

According to Article 130 of the Environmental Code of the Republic of Kazakhstan, the category of "green" projects includes projects aimed at reducing the level of negative interaction on the environment, improving energy efficiency, energy conservation, mitigating the effects of climate change and adapting to climate change. The Company adheres to the sustainable development policy, which provides for compliance of funded projects with environmental legislation, including the Environmental Code of the Republic of Kazakhstan.

The Company, performing the functions of a financial development institution, integrates the principles of sustainable development into its activities. For these purposes, a Sustainable Development Policy was approved, providing for approaches to financing "green projects" (investment, environmental and social policies), which are aimed at reducing potentially negative environmental and social impacts, encouraging clients to manage environmental and social risks, as well as taking into account the interests of the public in the field of environmental impact of projects and social impact in making decisions about financing and project implementation.