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Премия рунета 2017

SUMMING UP THE RESULTS OF THE SECOND ENVIRONMENTAL TRANSPARENCY RATING OF KAZAKHSTAN OIL AND GAS COMPANIES

22 january 2019
The World Wide Fund for Nature (WWF) and CREON Group, with the support of the Ministry of Energy of the Republic of Kazakhstan, for the second time presented the results of the Environmental Transparency Rating of Kazakhstan Oil and Gas Companies. The event took place on January 22 in Astana.
The project is implemented with the support of the United Nations Environment Program in Central Asia (UNEP-CA); the rating was calculated by the National Rating Agency. CREON Capital S.a.r.l. acted as the project partner.

The calculation of this year’s rating confirmed the efficiency of last year’s leaders and discovered a new name. For the second time in a row, the list was headed by National Company KazMunayGas, the runner-up also remained the same — Karachaganak Petroleum Operating B.V. For the first time, Embamunaigas entered the top three, displacing PetroKazakhstan Kumkol Resources from third place.

“Conducting the environmental transparency rating of Kazakhstan oil and gas companies increases the transparency and openness level of oil and gas companies operating in Kazakhstan,” said Sabit Nurlybay, Deputy Minister of Energy of the Republic of Kazakhstan, speaking at the presentation of the second environmental transparency rating of Kazakhstan oil and gas companies.

The rating was based on comparable information about the environmental transparency level of 19 companies and the extent of their environmental impact. The main players were compared according to the following criteria: environmental management, environmental impact, information disclosure/transparency. The rating is based on publicly available data on the companies’ activities in Kazakhstan.

It can be said that, as compared to the first rating of 2017, the transparency level of oil and gas companies operating in Kazakhstan has increased. This applies to both the number of disclosed environmental aspects and the quality of their disclosure. As a result, the average rating score increased both for each section and for the rating as a whole (0.51 in 2018 against 0.43 in 2017). The greatest increase in transparency is observed in the section of quantitative indicators of environmental impact (0.6 in 2018 against 0.39 in 2017).

Over the past decade, the transition to the sustainable development model with due regard to the environmental requirements has become a strategic priority for many governments, including Kazakhstan, which in 2013 adopted the Green Economy Transition Concept,” says Olzhas Atymtayev, national program UN Environment Officer for Central Asia. “Transformation of the economy, taking into account the reduction of environmental risks, will help Kazakhstan to achieve the sustainable development goals adopted by the world community in 2015 and address global challenges, from urbanization and resource scarcity to climate change, population migration and economic instability. An inclusive green economy, with the active participation of business representatives and the public, being an alternative to traditional resource-intensive economic models, will help countries improve people's well-being without harming future generations.”

Fares Kilzie, head of CREON Group, is convinced that environmental friendliness is becoming a decisive factor in the global economy in the 21st century. “Investors are already forming a business request considering the sustainability factors. As an investment company, we see a bright future in the field of greening the sector and strong growth of responsible investment,” he concluded. 

There is every reason to believe that this rating will become a significant incentive for increasing corporate transparency in terms of disclosing environmentally significant information and developing interaction with stakeholders: civil society and local communities. Thus, this project will facilitate the actual implementation of the Aarhus Convention provisions in the Republic of Kazakhstan.

“It is the voluntary mechanisms of environmental responsibility that drive social and environmental innovations, transparency and create market competitive advantages for businesses both in shaping consumer preferences and in risk assessment by financial institutions. The five-year experience of applying the rating approach in Russia allows us to demonstrate both a significant increase in transparency of the major oil and gas companies and, in some cases, a significant reduction in environmental impact,” says Yevgeny Schwartz, Director for Environmental Policy at WWF Russia.

Viktor Chetverikov, President of the National Rating Agency, noted that “we see a growing global interest in non-credit ratings, the demand for them is obvious. The fact that we have such an important rating for Kazakhstan companies will contribute to the growth of environmental corporate social responsibility. The rating organizers and partners are implementing a very important initiative, and we are proud to be a part of this movement.”

So, the implementation of the Environmental Transparency Rating of Kazakhstan Oil and Gas Companies will help improve the quality of environmental risk management in the production, transportation and processing of hydrocarbons, as well as reduce the negative impact on the environment.

The Rating is calculated based on the original methodology developed by WWF and tested in Russia in 2014-2018. The rating is available for download at the WWF Russia website. 

Photo in the caption and in the announcement: © WWF-Canon / Hartmut JUNGIUS.

For additional information please contact
Oil & Gas Programme Leader