Kazakhstan Engineering Holding adheres to compliance with environmental norms and prevention of environmental pollution in production processes. The main priorities include minimization of environmental damage, introduction of “green” technologies, improvement of energy efficiency, resource saving and waste recycling.

Managers and responsible persons implement measures to comply with environmental standards on an ongoing basis, regularly organize inspections and audits, identify and eliminate non-compliances, manage risks and comply with legal regulations.

In turn, the Company coordinates the environmental management of its subsidiaries (SDCs) by issuing policy guidelines, recommendations and monitoring the implementation of environmental measures. Monthly updates and reports are collected using checklists developed by the Company, and twice a year verifications of the information provided are carried out with visits to subsidiaries.

The Holding's enterprises operate in accordance with national environmental laws, obtaining the necessary permits and developing emission standards. The main sources of emissions include boiler houses, heating furnaces and production equipment. The Company's enterprises have developed appropriate waste management programs, the main objectives of which are defined as:

• Minimization of environmental damage from generated and accumulated waste;
• improving the quality of waste management;
• reducing the volume or level of hazardous waste.

The programs regulate the processes of accounting, collection, sorting, storage, recycling, transportation for disposal or burial in accordance with the requirements for waste management by hazard class. As a rule, enterprises are not engaged in independent waste disposal, but conclude contracts for their removal with specialized organizations.

Waste management is carried out in accordance with the Environmental Code of the RK, with a focus on minimizing environmental damage and improving waste management. Taking into account the specifics of machine building, the main production and consumption wastes of the plants are:

• scrap metal, including metal chips;
• mercury-containing lighting sources;
• spent batteries;
• used oils and liquids, oily rags;
• construction waste;
• municipal solid waste;
• containers;
• woodworking waste.

Among other things, energy consumption is a key environmental issue for machine-building companies as energy-intensive production facilities. The main tasks to ensure environmental sustainability include respect for nature, compliance with labor protection standards, energy efficiency improvement and implementation of a reporting system. The energy consumption of the Holding Company's enterprises consists of electricity and heat. Measures to reduce energy consumption include replacement of obsolete equipment, insulation of buildings and introduction of energy-saving technologies.

In accordance with the Law of the Republic of Kazakhstan “On Energy Saving and Energy Efficiency Improvement”, the Company's subsidiaries and affiliates conduct energy audits and annually approve Energy Efficiency Action Plans.

At the moment, the implementation of a proactive approach to environmental issues is considered as one of the priority issues. The Holding Company considers it important to actively develop environmental management, and therefore on a continuous basis introduces innovative technologies and participates in projects for the production of renewable energy sources.