KPO SUSTAINABILITY
REPORT 2022
Why is it important to us?

Engagement with local communities to understand their needs and the local context is one of the KPO Sustainable Development Charter principles.

Building up good neighborhood and constructive dialogue with local government bodies and communities is essential for us because this kind of activities helps the Company to maintain our ‘social license to operate’ in the West Qazaqstan Oblast.

KPO engagement with the local communities of the Burlin district during the implementation of construction projects contributes to minimizing the social and environmental risks associated with the Company’s activities at the Karachaganak field.

Business principle:
COMMUNITIES

We aim to be good neighbours by continuously improving the ways in which we contribute directly or indirectly to the general wellbeing of the communities within which we work.

We build productive, collaborative and trusting relationships with government, the local communities where we work and with each other.

We strive to be open, straightforward, and transparent within the constraints of business confidentiality.

Monitoring of resettled communities 2018–2022

Local communities

In its operations, KPO strives to prevent or minimize negative impacts and maximize the benefits from its presence by continuous engagement with local communities, and creating conditions for their well-being and economic growth.

The targets in table 24 are aimed at supporting the local communities living in three rural districts of Burlin district – Priuralnyi, Zharsuat and Uspenovskiy villages located adjacent to the Karachaganak Field and Aksai town.

Aiming to implement initiatives in the area of corporate social responsibility, KPO applies policies, standards and procedures based on the Performance Standards of International Finance Corporation.

In order to maintain effective dialogue with local communities on social and infrastructural support, KPO conducts meetings and consultations in the form of Village Council meetings with participation of Company employees and representatives from rural districts.

In 2022, 17 Village Councils meetings were held in the Priuralnyi, Zharsuat and Uspenovskiy rural districts. During the meetings, the local residents were informed of the KPO Community Development Programmes for 2022, on the progress of students from these rural districts who study in colleges and universities of Uralsk under the KPO Scholarship Programme, as well as KPO Environmental Monitoring Programme.

Overall, 18 local residents received education over the period of the Scholarhip programme from 2010 to 2022.

As part of the Community Development Programme, KPO provided 150 vouchers for the elderly of Burlin district for health recreation in the Akzhaiyk Sanatorium.

Tab. 24. Targets in community engagement

2022 targets

Target achievement

Actions taken in 2022

Targets for 2023

Implement the 2022 Community Development Programme as per approved budget

Completed

The Akzhaiyk sanatorium recreation for the elderly community members was implemented.

The Scholarship Programme for rural school graduates successfully continued.

Implement the 2023 Community Development Programme as per approved budget

Conduct nine Village Council meetings in three rural districts on social and environmental issues

Completed

17 Village Council meetings were held in three rural districts. Along with this, additional meetings outside of Village Councils were held to answer the residents’ questions.

Conduct nine Village Council meetings in three rural districts on social and environmental issues

Review and timely close all incoming grievances and suggestions from the communities

Completed

All received grievances were reviewed and effectively closed out

Review and timely close all incoming grievances and suggestions from the communities

Community feedback mechanism

In 2022, in accordance with KPO Community Grievance Procedure, we received 32 complaints and requests from the local community, including seven gas odor complaints and 32 requests and suggestions of various nature from the local communities living in close proximity to the Karachaganak Field. Residents were interested in the company’s social initiatives aimed at supporting socially vulnerable groups of the population, resettled residents asked for clarifications, etc.

Check-ups carried out by the KPO Operations Environment Monitoring Team did not reveal any malfunctioning of the process equipment, leaks/emissions or MPC exceedances in each case reported. Upon completing the review, some feedback was communicated to the residents who had filed the complaints.

Public hearings

In 2022, KPO held public hearings on the construction projects “Expansion of Karachaganak 1. 2nd stage of construction”, “KPC. Construction of a new caustic neutralization complex (adjustment)”. According to the requirements of the Environmental Code of the Republic of Qazaqstan, public hearings were held in the form of open meetings in 4 rural districts.

Information about planned public hearings was communicated to the representatives of interested government bodies and the public through publications in regional and district newspapers, local television and radio channels, on information boards at rural districts akimats, as well as through the Unified Environmental Portal.

All the projects discussed at the public hearings in 2022 were approved by the interested government bodies and the public. The results of the hearings are reflected in the relevant minutes. A package of documents submitted for public hearings, as well as the results of the discussion, are available on the website https://ecoportal.kz/.

Monitoring of resettled communities

Since resettlement of the first residents from Berezovka and Bestau villages to Araltal micro district and apartment buildings in Aksai at the end of 2017, KPO has been annually monitoring the livelihood restoration of the resettled families.

As part of the above monitoring, in the period 2018–2022, KPO carried out the following activities for residents resettled in apartment buildings in Aksai, including Araltal, where 100 detached houses were built:

  • 2018–2019 – residents of 100 houses in Araltal were provided with 11,600 tons of top soil for the cultivation of household plots;
  • 2018–2021 – 800 appeals and requests of resettled residents were registered in the KPO Community Feedback Log. All issues were resolved by the end of 2021;
  • 2019 – KPO assisted in complete reconstruction and relocation of the Monument to the Soldier of the Great Patriotic War from the former Berezovka village to Araltal;
  • 2020 – during the COVID-19 pandemic, in cooperation with the Burlinsky District’s Akimat and the Aksai town’s Akim, KPO organized the delivery of food and essential goods on a mobile shop for residents of 100 houses in Araltal;
  • 2020 – with assistance of Akim of the Aksai town of Burlin district, KPO delivered 150 tree saplings for landscaping the yard area of multi-storey buildings in 5 and 10 microdistricts in the Aksai, where resettled residents live;
  • 2020–2021 – expiration of the warranty period for two apartment buildings in 10 microdistrict of Aksai, 100 detached houses in the Araltal microdistrict of Aksai, a school for 300 children in Araltal and a kindergarten for 320 children in 10 microdistrict of Aksai of Burlin district, built for the resettled residents of the former Berezovka and Bestau villages.

In addition, in 2022, a tender was held to select a contractor to develop Detailed Engineering Design for the Demolition and Land Reclamation Project of the resettled Berezovka and Bestau villages. We will inform readers about the implementation of this project in the next Sustainability Report.