Sustainability

TCFD

KAZ Minerals supports the work of the Task Force on Climate-related Financial Disclosures which requires companies to set out how their strategy and risk assessment processes align with the challenges and opportunities presented by climate change.

Recommendation	Recommended disclosures	Description
Governance Disclose the organisation’s governance around climaterelated risks and opportunities	– Describe the Board’s oversight of the climate-related risks and opportunities – Describe management’s role in assessing and managing climaterelated risks and opportunities	– The Board reviews and evaluates the principal and emerging risks faced by the Group, including climate change, throughout the year and at least annually. –The HSS Committee, via its delegated authority from the Board, receives updates on key sustainability issues, including climate change, at least quarterly and periodically receives external training from sustainability specialists where the need arises. The HSS Committee is responsible for monitoring the Group’s progress against its climate-related targets. – The Board considers the climate-related risks when assessing and undertaking significant strategic projects and investments. – Management monitors the Group’s performance on climate-related metrics and reports to the HSS Committee on a regular basis throughout the year. Management is responsible for implementing the Group’s strategy to manage climate-related risks and optimise associated opportunities.
Strategy Disclose the actual and potential impacts of climate-related risks and opportunities on the organisation’s business, strategy, and financial planning where such information is material	– Describe the climate-related risks and opportunities the organisation has identified over the short, medium and long – Describe the impact of climaterelated risks and opportunities on the organisation's businesses, strategy and financial planning – Describe the resilience of the organisation's strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario	– Considering the long life of the Group’s key assets, Aktogay and Bozshakol, KAZ Minerals assesses risks and opportunities over the short term (0 to 5 years), medium term (5 to 10 years) and long term (beyond 10 years). – Climate change has been identified by the Group as an emerging risk over the long term. Potential impacts over a more short-term time horizon are described in the Group’s “Environmental”, “Business Interruption”, “New projects and commissioning” and “Foreign exchange and inflation” principal risks. – Climate-related risks identified by the Group include transitional risks, such as evolving regulations, changing consumer behaviour and societal perceptions of the mining sector, as well as physical risks, such as changing weather patterns and more extreme temperatures. – Climate-related opportunities have also been identified, most significantly the potential for increased demand for copper, considering the fundamental role it is expected to play in the transition to a lower carbon economy. – This opportunity underpins the Group’s strategy of seeking to grow its copper production in a sustainable manner. As a low-cost producer, with operations primarily in Kazakhstan, the Group currently views its strategy as being resilient to the risks presented by climate change. The Group will continue the process of considering different climate-related scenarios over the coming year. – Climate-related risks are evaluated as part of the overall investment decision of whether to proceed with significant new projects. The Group has also begun to apply a theoretical price of carbon of $100/t to investment decisions and will continue to develop this process.
Risk management Disclose how the organisation identifies, assesses, and manages climate-related risks	– Describe the organisation's processes for identifying and assessing climate-related risks – Describe the organisation's processes for managing climate-related risks – Describe how processes for identifying, assessing and managing climate-related risks are integrated into the organisation's overall risk management	– Climate-related risks are identified, assessed and managed as part of the Group’s wider risk management framework, which is described on page 58. – Risks are classified by assessing the potential severity and likelihood of occurrence of each relevant risk. – The HSS Committee reviews the management of sustainability risks, including climate change, while the General Directors of each operation are responsible for the identification and management of risk at the Group’s mines.
Metrics and targets Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities where such information is material	– Disclose the metrics used by the organisation to assess climate-related risks and opportunities in line with its strategy and risk-management process – Disclose Scope 1, Scope 2 and, if appropriate, Scope 3 GHG emissions and the related risks – Describe the targets used by the organisation to manage climaterelated risks and opportunities and performance against targets	– KAZ Minerals has set targets to reduce its GHG emissions intensity and water consumption intensity, in line with the Group’s strategy of growing its copper output in a sustainable manner. – Scope 1 and Scope 2 GHG emissions are presented for the current and prior year, calculated in line with the GHG Protocol methodology. The Group has not yet finalised the calculation of its Scope 3 GHG emissions due to limitations in obtaining reliable data from key external sources. The Group will continue working on calculating a reliable value for its Scope 3 emissions.