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GRI: 201-1 Direct economic value generated and distributed 201-2 Financial implications and other risks and opportunities due to climate change 201-3 Defined benefit plan obligations and other retirement plans 201-4 Financial assistance received from the state GRI 202 202-1 Ratios of standard entry level wage by gender compared to local minimum wage 202-2 Proportion of senior management hired from the local community 203-1 Infrastructure investments and services supported 203-2 Significant indirect economic impacts 7 GRI 204 204-1 Proportion of spending on local suppliers (See section «Procurement») 205-1 Operations assessed for risks related to corruption 205-2 Communication and training about anti- corruption policies and procedures 205-3 Confirmed incidents of corruption and actions taken 206-1 Legal actions for anti-competitive behavior, anti-trust, and monopoly practices

7.1. ECONOMIC PERFORMANCE 7.2. ENVIRONMENTAL SUSTAINABLE LIABILITY 7.3. SOCIAL DEVELOPMENT RESPONSIBILITY

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7.1. ECONOMIC PERFORMANCE compensation to depositors of Eximbank JSC. Mortgage loans of Real partner Estate Fund Samruk Kazyna can also be paid 150 (GRI 201-1) established in relation to monthly calculation through Kazpost. Entrepreneurs work indicator. Initial level of salary (official To implement its mission, the Company salary), depending on region, employee The Company delivers “convenient” receipts For utility companies, this work has reduced ensures development of modern digital qualifications, type of employment and in . Single payment costs for all subscribers on formation of bills, society based on effective ecosystem activity, is from 46 thousand KZT per month receipts for public utilities. SPD project paper, printing and delivery of invoice notices. which enables customers to quick and and more. (single payment document) together with Need to conclude a number of agreements reliable receipt of postal, logistic and Akimats, works in , Ust-Kamenogorsk, with banks disappeared. Implementation of financial-agency services. This activity Under collective agreement, one-time , Taldykorgan, Turkestan, the project allowed abolition of many receipts makes a significant economic contribution in payments are provided for various social Kentau, and . Collaboration is of bill-notices from different companies. regions of presence. reasons with participation of trade union, conducted with 70 providers of utilities and these funds are allocated monthly. Various telecommunications services. Receipts are Also, we are participants of the project of (GRI 201-2) benefits are provided for employees, generated by system of single settlement the Ministry of Labor and Social Protection which are regulated by the legislation of center “Post SSC”, and then they are of Population of the Republic of Kazakhstan Currently, the Company does not have the Republic of Kazakhstan and internal delivered to subscribers in printed form. within the framework of introduction of significant risks associated with climate documents. the portal on delivery of rehabilitation change. In turn, we are always looking services to people with disabilities. for opportunities to implemet production In 2019, the Company received subsidies potential through environmentally friendly in the amount of 4.2 bl. KZT for universal technologies. services, which is more than the amount 7.1.2. Procurements received in 2018 by 1.7 bln. KZT. Increase For example, unmanned aerial vehicles in the amount of subsidies was associated (GRI 204-1) suppliers in the context of freedom of have been used for several years, delivering with a review of cost of universal services association and collective bargaining. mail to the most inaccessible territories by the authorized body. Proper organization of procurement is one of of the country, energy-saving lighting has competitive advantages. Profitable suppliers In order to reduce cost of been installed in some production facilities, Economic indicators, bln. KZT provide high level of production. There is supply and improve quality of and transport is switching to gas-balloon 1.26 no cooperation with suppliers included purchased goods, works and equipment. This is due to commitment to be 2017 49.12 47.86 3.62 in register of unscrupulous suppliers of in trend of developing modern technologies, goods, works and services in accordance services through development 0.27 as well as in providing environmentally with the law, which has a positive effect on of individual approach to each 2018 54.50 54.23 3.95 friendly technologies for provision of services. reliability in relations during organization of category, project “Categorical 0.05 procurement. Purchasing goods, priority is 58.63 58.58 4.14 procurement management” has (GRI 201-3, 201-4, 202-1) 2019 given to domestic producers. been introduced and transferred 26 52 78 104 130 Collective agreement is in force, provides 0 During the reporting period, there were to operational activities. monetary compensation, social benefits for Direct economic value created (income) no risks and violations of rights regarding employees. In order to ensure indexation Distributed direct economic value (expense) of payments, sizes of social payments are Undistributed economic value (profit) Taxes and Payments Paid

7.1.1. Indirect Economic Impact

(GRI 203-1, 203-2) The Company develops partner network, today about 150 partner entrepreneurs In addition to economic contribution provided work with us, they opened about 200 offices, in regions, the Company significantly supplementing more than 3 thousand post expands area of impact in various areas of offices. development. For example, functionality of “Open API“, “KazpostStore” was introduced Legislative initiatives to facilitate export for owners of domestic online stores, which were introduced. Training courses for allows using Kazpost services on their sites. entrepreneurs on financial, digital and tax Such services as New Postcodes, Calculation literacy, electronic commerce were organized. of Shipping Costs, Address Label Generation, Fulfillment centers and E-commerce center and Tracking are available. These services will perform these functions. allow online stores, delivery services and other companies to use data, search for parcels and Kazakhstani Fund of Deposit Guarantee letters, calculate shipping costs, etc. chose Kazpost for payment of guarantee

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prepared or completed facts of social and labor conflicts; For the reporting period, procurement At meetings with representatives of corruption, fraud and theft; categorical strategies for postal equipment, associations of light, furniture and packaging violation of code of business conduct. updating for uniforms and other were industries, issues of promising interaction in conflict of interest; approved. the area of new developments which have no Anti-corruption clause has been included abuse of functions and authority; analogues in Kazakhstan, and concentration in standard procurement contracts, which Nowadays, procurement procedure has on development of new areas of production illegal financial transactions; stipulates suppliers’ obligations to comply been established at a fairly high level. were discussed. Issues of import substitution with anti-corruption laws and Procurement distortion of financial and management It is known that procurements affect and development of local content of new Rules. Complete and timely formation of list reporting; profitability of business; therefore, production program, conclusion of direct of affiliates is provided. 100% consideration supplies and procurement are integrated agreements, became main subject. cases of discrimination; of “hot line” calls was provided in a timely into management system. Functional manner. and organizational structure is defined, In September 2019, on the basis of close cooperation was organized with continuous professional development Number of corruption offenses other subdivisions. All necessary internal bureau of AIFC, a competition on “Category documents on procurement activities were Procurement Management” was held. Name 2017 2018 2019 approved. Organizer was the Fund, and subsidiaries Bribery 1 1 1 of the Fund took part in the completion in Theft 101 81 60 The Company supports development of various nominations. According to the results local production, purchases from domestic of the competition, the Company was manufacturer for various types of needs, determined as the winner in nomination (GRI 205-3) with the purpose of timely notification of including packaging materials, uniforms and “Best Support for Local Manufacturers” with possible facts of corruption offenses. furniture. presented procurement category strategy Monitoring of incoming requests is provided “Postal and Production Equipment”. on a monthly basis. Audit Committee of (GRI 206-1) the Board of Directors is provided with Local content structure, % analytical report on the appeals received In the reporting period, there are no cases on a quarterly basis. Interaction with law of obstacles to competition and violations of Name 2017 2018 2019 enforcement agencies has been established antitrust laws.

Services 90 93 93 Goods 24 28 34 Works 92 93 93 7.2. ENVIRONMENTAL LIABILITY Kazakhstani content 65 64 70 GRI3: 304-3 Habitats protected or restored 304-4 301-1 Materials used by weight or volume IUCN Red List species and national 7.1.3. Anti-corruption conservation list species with habitats in areas 301-2 Recycled or re-used wastes affected by operations (GRI 205-1) corruption offenses, officials’ responsibility 301-3 Reclaimed products and their packaging 305-1 Direct GHG emissions materials for bribe, employees’ responsibility for facts 305-2 Energy indirect GHG emissions 302-1 Energy consumption within the organization System of anti-corruption measures of petty corruption. 305-3 Other indirect GHG emissions 302-2 Energy consumption outside the organization includes measures aimed at thorough 305-4 GHG emissions intensity 302-3 Energy intensity preventing corruption, including: anti- Information on consequences of corruption 305-5 Reduction of GHG emissions corruption monitoring; analysis of corruption and other offenses which contribute to 302-4 Reduction of energy consumption 305-6 Emissions of ozone-depleting substances risks; formation of anti-corruption culture; corruption, for perpetrators of these crimes, 302-5 Reductions in energy requirements of products (ODS) financial control; prevention and resolution of as well as their close relatives is regularly and services 305-7 Nitrogen oxides (NOX), sulfur oxides (SOX), and conflicts of interest; detection, suppression, provided. 303-1 Interactions with water as shared resource other significant air emissions disclosure and investigation of corruption 303-2 Management of water discharge-related 306-1 Water discharge by quality and destination offenses. Detailed analysis of corruption Documents of candidate, applying for impacts 306-2 Waste by type and disposal method risks in the area of procurement, personnel vacancies, related to liability, shall be 303-3 Water withdrawal management, as well as in business checked to identify malpractice in previous 306-3 Significant spills 303-4 Water discharge processes was carried out. positions. Conversations and briefings on 306-4 Transport of hazardous waste 303-5 Water consumption compliance with anti-corruption legislation 306-5 Water bodies affected by water discharges (GRI 204-2) are mandatory for newly hired employees. 304-1 Operational sites owned, leased, managed and/or runoff in, or adjacent to, protected areas and areas of high 307-1 biodiversity value outside protected areas Non-compliance with environmental laws and In all regional branches meetings and Employees are informed about “hot line”. regulations 304-2 Significant impacts of activities, products, and 308-1 seminars were held together with In order to prevent corruption in branches’ services on biodiversity New suppliers which were screened using employees of anti-corruption service with buildings, “hot line” stands were installed, environmental criteria the participation of branch managers, heads explaining need for hotline if there is 3 Disclosure of indicators of materials, water, discharges and waste, 308-2 Negative environmental impacts in the supply biodiversity is limited (in red), because they are statistically insignificant chain and actions taken of post offices, to explain anti-corruption information on following issues: and are not included in scope of main activity and influence of the legislation, harmful consequences of Company.

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regulatory requirements of authorized Planning environmental events, the Company Air emissions, thousand tons bodies in the area of environmental takes into account its technological and protection; financial capabilities. Environmental Name 2017 2018 2019 planning is based on: results of risk assessments; Air emissions 0.835 0.792 0.764 requirements of legislation of results of environmental monitoring; NO 0.060 0.057 0.055 the country and international 2 SO 0.106 0.101 0.097 requirements; analysis of results of implementation of 2 environmental protection action plans. Solid particles 0.371 0.352 0.340 development strategies and internal Other 0.298 0.282 0.272 documents; (GRI 307-1) There are no facts of non-compliance with the environmental legislation and regulatory 7.2.1. Resources and emissions Obligatory tax payments to budget (payment requirements and imposition of penalties for for emissions into the environment) were the reporting period. The Company seeks to reasonable (GRI 303-1:303-5) made in accordance with the tax legislation. use of resources and respect for the environment, adheres to principles of: For example, water resources are used Tax payments for emissions, thousand KZT prevention of negative impacts on exclusively for household needs (personnel the environment, application of the best needs for drinking water, hygiene in buildings Name 2017 2018 2019 environmental practices; and structures, watering territory and Payments for emissions 25,395.74 24,422.87 26,955.80 green spaces in summer). Water supply of promoting development and facilities is centralized; in some postal offices distribution of environmentally friendly transported water is used. In process of The Company approved Strategy for reduce costs and harmful emissions into technologies; activity, domestic wastewater is generated. implementation of investment activities the environment. compliance with the environmental Wastewater is discharged into existing in relation to green investments, where it standards and regulations, taking sewage and/or septic networks. identified three main areas: introduction In sustainable development projects, in order measures to prevent emergencies. of alternative, environmentally friendly to increase awareness of employees about heating, energy saving and energy respect for environment and introduction Water consumption efficiency and development of “clean” of environmental culture, Green Office transport. initiative had been implemented. Waste Name 2017 2018 2019 paper collection sites are organized in As part of implementation of Strategy, in offices of central office and 18 branches. Cold water, thousands. m3 200.8 206.2 187.08 2020 it is planned to reduce pollutant Memoranda of cooperation were signed Hot water, Gkall 7,407.9 8,140.8 8,423.4 emissions by switching heating system of with organizations for transfer of waste production facilities from solid fuel to natural paper for recycling free of charge. During (GRI 304-1: 304-4) of connecting to central heating system, is gas in gasified regions, namely in Zhambyl implementation of this project, 12 tons of carried out from autonomous heat sources and Aktobe regional branches. Also, in 2020, waste paper was transferred for processing. Activities of the Company do not significantly operating on carbon fuels (coal, diesel fuel, it is planned to modernize lighting system affect biodiversity in territories of its natural gas). using LED lighting equipment in 6 branches. Branches provide sanitary cleaning and presence. There are no objects located in gentrification of territories of post offices. territories of state national natural parks There are permissions of the authorized It is planned in future to switch to renewable Generated solid household and other or reserves, in specially protected natural state body for emissions into environment for energy sources, in particular, to solar industrial wastes are promptly disposed in territories. production facilities and branches. At the end and wind energy, with their economically accordance with concluded agreements with of 2019, volume of actual emissions viable application, which will significantly specialized organizations. (GRI 305-1: 305-7) amounted to 764 tons/year, which is within the established limit. There are no excess Non-hazardous wastes disposed at landfill, thousand tons Heating of production facilities, located in emissions; qualitative composition of district centers and rural settlements of emissions is presented in the table below. Name 2017 2018 2019 regional centers, where there is no possibility Household wastes 6.0 5.94 5.9

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7.2.2. Energy Saving Measurement Diesel fuel unit 2017 2018 2019

In accordance with the Law of the Republic well as in order to save energy, repairs were Annual diesel fuel consumption t.n.t. 241,98 240.863 253.91 of Kazakhstan “On Energy Saving and carried out, as well as measures to replace Volume of diesel fuel consumption per 1 m2 per Improving Energy Efficiency”, energy audit incandescent lamps with LED lighting in day t.n.t. 0,000081 0.000081 0.000085 was conducted at facilities of the Company’s branches: Aktyubinsk, Atyrau, TLC “South”, Annual amount of costs for purchase of diesel fuel Mln. KZT 38,37 33.42 57. 024 branches, which resulted in approval of plan Astana, East Kazakhstan, South Kazakhstan. Volume of costs for purchase of coal per 1 m2 per for energy conservation and energy efficiency Table below provides information on day KZT 12,904 11.242 19.179 improvement for 2019–2020. As part of dynamics of energy consumption. Average purchase rate of diesel fuel KZT/t.n.t. 158,558,38 138,773.22 224,582.07 implementation of this Plan in 2019, as

Measurement 7.2.3. Work with suppliers Electricity unit 2017 2018 2019 Annual electricity consumption mln. kWh 20.84 23.47 22.49 (GRI 308-1, 308-2) experience and competence of Electricity consumption per employee per day kWh 3.5 3.9 3.87 contractor to perform such work; Annual cost of electricity purchases mln. KZT 370.08 423.98 389.11 Procedures for working with contractors are probability of risk occurrence at applicable to all suppliers performing work, Amount of costs for the purchase of electricity per 1 the facility; employee per day KZT 61.81 71.68 67.01 providing services, supplying goods that may Average purchase electricity rate KZT/kWh 17.75 18.05 17.3 have a negative impact on environment. Supplier is selected on the basis of Environmental requirements for requirements set, including in the area of suppliers are determined from principle environmental protection, taking into account Measurement of preventing negative impact of their possibilities and level of environmental Thermal energy unit 2017 2018 2019 activities on environment. Preparing safety during work. The Company appoints Annual thermal energy consumption thousand Gkall 22.75 23.76 23.98 technical specifications for performance of owner of this process, who is responsible Thermal energy consumption per employee per day Gkall 0.0010 0.001 0.0011 work, degree of this impact is determined, for complying with the environmental taking into account following factors: requirements, performing contract work. Annual cost of thermal energy purchases ln. KZT 138.437 159.886 156.51 Before starting work, the supplier checks Amount of costs for purchase of thermal energy per 1 possible impact or consequences; employee per day KZT 6.354 7.339 7.18 whether it has necessary procedures, plans type/nature of work performed; to identify risk factors and eliminate them or Average purchase thermal energy tariff KZT/Gkall 6,084.87 6,728.19 6,525.95 place of work; reduce its degree.

Average purchase rate type/nature of risk factor or exposure; Measurement Environmental requirements are periodically for natural gas Natural gas unit 2017 2018 2019 duration of work performed; reviewed and updated. Annual natural gas consumption thousand m3 1,270.07 1,443.49 1,268.81 23,13 21,1 Volume of natural gas consumption per 1 m2 7.3. SOCIAL RESPONSIBILITY per day m3 0.15361 0.1745 0.149 Annual cost of natural gas purchase mln. KZT 26.8328 31.779 29.35 Social stability is one of main conditions Governance Code, Code of Business Volume of costs for 22 for implementation of strategic Conduct, Personnel Policy) determine main purchase of natural gas objectives. Responsible and hardworking priorities of relationship. per 1 m2 per day KZT 3.24547 3.843 3.44 2017 2018 employees are most valuable resource Average purchase rate KZT/thousand for natural gas m3 21.1 22.0 23.13 2019 and advantages of modern, dynamically Personnel policy is aimed at introducing developing organization. the best practices in personnel management. Developed methods and tools of personnel Measurement We strive to comply with the principles of management, subject to the best experience Energy coal unit 2017 2018 2019 ethical standards in all areas of relations with in personnel, have formed a single approach Annual coal consumption t.n.t. 4,848.89 3,075.71 3,506.89 employees. Internal documents (Corporate to ensuring development of personnel. Volume of coal consumption per 1 m2 per day t.n.t. 0.00025 0.000161 0.000251 Annual amount of coal purchase costs Mln. KZT 50.085 37.765 51.63 7.3.1. Implementation of HR strategy Volume of costs for purchase of coal per 1 m2 per day KZT 2.622 1.9771 3.7026 Average coal purchase rate 12 14 Main goal of HR strategy is to increase various areas has been carried out, and staff KZT/t.n.t. 10,329.35 278.74 722.79 effectiveness of personnel management, optimization has been carried out. creating a single human resources management system. As part of this Organizational structure is important link in strategy, in order to expand workforce, model ensuring effectiveness of staff development. contracts have been updated, training in In this area, work was carried out to increase

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competencies in project management Work on personnel Staff strength. As of December 31, 2019, Employees under age of 25 are 8% and older and change management, namely: 100% administration is carried out staff strength is 22,143 people, including: 50 years of old are 24%. coverage with assessment was provided according to 31 HR processes. administrative staff – 726 people, production during employment and conduction of and support staff – 21,417 people. In 2019, Education. According to level of education, comprehensive staff assessment; eight 22 processes have been put more than 5 thousand employees were employees with higher education is 30.2% employees received an international into operation, more than 800 employed. of total number, 43.4% is with secondary certificate of IPMA standard; seventy eight employees have been trained, specialized education, 23.4% is with employees passed internal training on more 300 events have been Salary In 2019, average monthly salary secondary education, 3% is with incomplete change management as well as project of employees increased by 9%, from 120 higher education. management. carried out, many processes thousand KZT to 131 thousand KZT. Salaries have been automated, including were increased to 2,225 employees. As part Staff turnover. Staff turnover was 25.3% in To accelerate recruitment process and “Internship and practice”, of motivation of production employees, there 2019. ensure quick recruitment of teams, personnel “Personnel search and are 46 types of incentive programs which accounting processes are automated, clear allow receiving payments in addition to Number optimization: 270 staff units or profile of role in team for each project is selection”, “Training”, etc. the official salary. more 600 people were optimized in 2019. formed, processes of managing project team resources are built. Project managers are Use of simplified tools for quick interaction Gender structure. According to gender, 24% Working schedule: Operating modes of post taught negotiation skills, systems thinking, is ensured during internal communication: of staff are men and 76% are women. offices, parcel supermarkets were revised, and communications. Agile approaches DropBox, Telegram, Youtube, Google disc, expected cumulative economic effect of are being piloted on post.kz projects and etc. Transparency and visibility of goal Age category. According to age category, which will be about 1.8 bln. KZT in 2020. digital offices. According to the results of setting, reporting and feedback are provided 68% of employees aged 25 to 50 years. work, bonuses are provided in the project for through appropriate software. successful completion of the project. 7.3.2. Employment, staff and management relationships HR indicators (GRI 401-1, 401-2) Name 2017 2018 2019 GRI: Collective Agreement is in force, which Number of staff 16,902 16,672 16,015 provides additional social guarantees Production staff 16,135 15,982 15,376 to employees in terms of remuneration, EMPLOYMENT Administrative staff 767 690 639 provision of material assistance, labor 401-1 New employees and employee Labor productivity 2,829 3,091 3,446 protection, etc. Document provides for types turnover Social Stability Rating 70% 65% 74% of monetary compensation, social benefits 401-2 Benefits provided to full-time Staff turnover 20.6% 20.7% 25.3% for employees. Size of social benefits is set employees which are not provided to Average salary 106,735 120,863 131,753 in relation to monthly calculation indicator. temporary or part-time employees Under collective agreement, one-time Degree of HR processes automation – – 60% 401-3 Parental leave payments are provided for various social reasons with the participation of trade union, EMPLOYEES AND MANAGEMENT these funds are allocated monthly. There RELATIONS are various benefits for employees, which 402-1 Minimum period of notification are regulated by the legislation and internal regarding operational changes documents.

Benefits granted to employees, thousand KZT

Name 2017 2018 2019

Obligatory accident insurance by employer 40,922 42,926 43,551 Material assistance to work leave for recovery 1,293,129 1,503,824 1,721,305 Voluntary medical health insurance (sorters) 30,044 30,316 33,250 Monetary compensation of postmen travel 40,864 62,616 71,807 Monetary compensation for honorable work to anniversary dates 56,746 71,020 63,842 Compensation for special clothes and shoes (uniform) 139,793 147,175 144,979 Number of employees retired due to achievement of retirement age 544 371 415 Number of working pensioners 664 507 402 Number of newly hired employees 4,918 5,413 4,568

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Quarterly staff turnover analysis, showing indexed, according to the internal rules and production equipment; issues of preventing work. Instructions contain general safety objective reasons for dismissal of employees, procedures. occupational injuries and minimizing requirements, including requirements is carried out. Based on the results of industrial accidents, were issued. Appropriate before, during and after work, as well as analysis, appropriate measures, affecting (GRI 401-3) instructions, policies and rules, governing safety requirements in emergency situations. staff turnover rate are being taken. workplace safety, have been approved. According to the Labor Code, following Safety and labor protection service is Payroll Fund allows planning degree of maternity leave is granted: maternity leave; “Week of Occupational Safety and responsible for ensuring coordination of all staff provision. Salary, if necessary, is vacation for employees adopting a newborn Health”, “Health Day”, “Donor Day”, and activities and issues to achieve goals in labor child/children; baby care unpaid leave. “Occupational Safety and Health Day” are protection, safety and health of employees. It held annually. makes proposals on modernization of safety Employees on parental leave and labor protection, implements measures (GRI 403-2) to analyze internal and external environment. Name 2017 2018 2019 It monitors timeliness and completeness of In practice, there are accidents, related with Women 997 1,123 2,709 identifying and responding to incidents on work and caused employee to lose working safety and labor protection. Men – – 7 capacity in accordance with medical report, they are thoroughly investigated. Accidents (GRI 403-4) (GRI 402-1) Minimum notification period for significant related to job, serious, fatal and group changes, according to terms of collective accidents are subject to special investigation. Mini-programs are approved, each of them agreement, is 1 month. Accidents related to job which were not is set of production, organizational and reported to local labor inspection authorities other measures on improvement of working in a timely manner are investigated upon conditions and mitigation of production risks. 7.3.3. Occupational Health and Safety the request of the victim. Goal is to increase employees’ involvement, effectiveness of communication process in (GRI 403-1) Identification of potential threats, risk labor protection and safety at workplace. GRI: assessment, accident investigation is carried According to the results of implementation, Issues of occupational health and safety out in accordance with internal procedures. it is expected to increase compliance with at workplace are given special attention. Main hazards include: traffic accident, dog the legislation on safety and labor protection, All measures on this issue are aimed at OCCUPATIONAL HEALTH AND SAFETY attack, and fall. reduce occupational injuries. ensuring safety, preserving life and health of 403-1 Occupational health and safety workers. Monitoring is carried out in safety management system (GRI 403-3) These mini-programs cover following areas and labor protection. Development and 403-2 Hazard identification, risk in safety and labor protection: prevention adoption of internal documents aimed at assessment, and incident investigation Each employee is provided with instructions of ergonomic and musculoskeletal injuries improving working conditions, introducing establishing safety measures during associated with manual control; raising 403-3 Occupational health services safe technologies, individual protection, establishing procedures for accounting 403-4 Employees participation, consultation, and communication on for industrial accidents, compliance with occupational health and safety legislation in labor safety and protection, etc. 403-5 Employees training on occupational Main principles in safety and labor protection health and safety are: safety of life and health of employee; 403-6 Promotion of employees health prevention of harmful effects of production 403-7 Prevention and mitigation of factors on health of employee; protection occupational health and safety impacts of workers’ rights to working conditions; directly linked by business relationships ensuring coordinated actions with territorial 403-8 Employees covered by an divisions and representatives of regulator; occupational health and safety completeness and reliability of information management system on state of safety and labor protection. 403-9 Industrial accidents 403-10 Occupational diseases Unified goal-setting system was introduced in labor protection management, in particular, a program on improvement of culture and system of labor protection and and annual contract has been concluded safety measures and new functional key for voluntary medical insurance of sorters in performance indicators were approved. case of disease.

Compulsory insurance contract of employee Orders, regulating labor protection against accident has been concluded in issues, including issues of responsibility performance of its labor (official) duties, for operation of electrical installations,

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awareness of property owners about Center on Formation of Healthy Lifestyle, 7.3.4. Training and Education security; mail delivery security in rural areas; Municipal Polyclinic No. 8 (), Kazakh improving psychological health of employees; National Medical University named after S. (GRI 404-1:404-3) developing a safety culture. Asphendiyarov and others. Company Aspect- Optics LLP provided its free services on check Nowadays, professional skills of employee GRI: (GRI 403-5) of eyesight and selection of frames and are not always effective for high-quality spectacle lenses, contact lenses, sunglasses solution of the assigned tasks. Competition TRAINING AND EDUCATION Regular training is conducted on issues and accessories. among service providers, scientific and 404-1 Average hours of training per year of labor protection and safety at working technological progress, growing influence per employee place. Training takes place on the basis of (GRI 403-7, 403-8) of e-commerce and other factors 404-2 Professional development the Republican State Enterprise “Republican determine need for continuous training programs, designed to support employees Research Institute for Labor Protection In order to prevent and minimize industrial and development of employees. Trainings, 404-3 Share of employees for which of Ministry of Labor and Social Protection accidents following measures are provided courses, including external training, which regular performance and career of Population”. In 2019, 24 branch labor on an ongoing basis: covered such topics as: safety and labor development reviews are conducted protection specialists were trained on topics: interaction with local executive and protection at enterprises, industrial safety “Safety and labor protection at enterprises”, authorized bodies to prevent icing on at enterprises, electrical safety; protection “Industrial safety at enterprises”, and roads and streets to avoid falling and of state secrets, international certification to legalization of income and financing of “Electrical safety”. Based on the results of injuries by postmen; according to IPMA standard, counteraction terrorism, basic fire safety. training and knowledge testing, certificates, daily briefings with postmen, sorters certificates with access to work in electrical Number of trained employees. and drivers on safety and labor installations as administrative and technical protection; personnel with the right to inspect, industrial Training 2017 2018 2019 ongoing training with employees on safety certificates were obtained. Full-time 11,210 14,202 34,000 safety and labor protection; Average annual number of training hours per employee 13 11 12 Employees of labor safety and labor pre-shift briefings with postmen, sorters External 154 1,069 437 protection of central office took part in and drivers; the 9th Kazakhstani International Conference Top 100 107 102 212 “KIOSH”, dedicated to the World Labor Introductory briefings for new and Remote 25,000 22,867 16,815 Protection Day. transferred employees, temporary employees, business travelers, In order to improve qualifications, there are “College of Energy and Communications” (GRI 403-6) students who have arrived at practice. internships in foreign postal administrations. and branch of “Astana general post-office” For example, internship of employees of training on specialty “Communications Health care of an employee is paramount Instructions for organization of working regional branches in Estonia, Ukraine and service provider” is being conducted on in ensuring safety at working place. As place; provision of photo report on identified Poland took place. the basis of Corporate Training Center. mentioned above, “Health Day”, “Donor Day”, violations during internal control; introductory “Occupational Safety Week” are celebrated briefing on safety and labor protection were During internships, experience of postal There is a “Welcome-training” for new annually, within which any employee can approved. administrations was studied, production employees, during which new employee undergo a medical examination and donate facilities, logistics and sorting centers, gets acquainted with the Company, receives blood if desired. Show of videos on first aid System of labor safety and labor protection, and postal offices were visited. Features of the most necessary information about our is organized. Representatives of private as well as internal documents on labor safety sorting, delivery of mail, as well as safety and activities. and public medical institutions are took and labor protection, are also applied to labor protection issues were studied. part. In 2019, following organizations took contracting organizations involved in various On issues of occupational safety and labor part: Family Doctor LLP, Zhan-Nur Medical sectors. (GRI 404-2) protection issues, regulatory documents are Center, Youth Health Center, Municipal regularly issued on conduct of appropriate Polyclinic No. 3 (Atyrau), Almaty Municipal (GRI 403-6) For the purpose of operators’ successful training or instruction on various categories interaction with customers, Contact Center of labor protection topics. Injury statistic training was organized on all kinds of services, covering more than 20 topics. In order to spread lean manufacturing Name 2017 2018 2019 method and increase practical experience As part of customer service program, in effectively building mail processing Number of work-related injuries: 18 11 26 Leadership School Program has been process, corporate training center Dog bite – 2 6 approved. The document is comprehensive regularly trains line managers. The first Fall (fracture, hurt) 4 8 7 system of training and development of Thursday of every month is corporate day of Road traffic accidents 12 – 7 subdivision heads. cleanliness and compliance with principle of Robbery 1 1 2 lean manufacturing. Other 1 – 1 According to agreement on dual training Number of industrial accidents per 1000 people 0.91% 0.48% 1.03% with State Municipal Management Company

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Number of employees who completed internal training Appointments to offices according to type of selection

Training 2017 2018 2019 Name 2017 2018 2019

Partner network – 245 507 By internal search 341 158 124 Call center – – 122 From personnel reserve 7 14 4 Leadership School – – 137 By external search 79 23 29 Dual training – – 45 Average number of responses per vacancy 7,857 6,070 4,567 Welcome training 159 146 1 629 Safety and Health Regulations – 214 5 500 Remuneration is carried out on basis of qualities and abilities of employees and Lean production 52 86 112 performance results, achievement of key according to terms of collective agreement, indicators, recognition of professional in accordance with the internal documents.

(GRI 404-3) at all reasonable time, including at home, Gender composition, age category, level of education also via smartphones and other gadgets. Due to flexible form of training and testing, Name 2017 2018 2019 employees are given opportunity to pass test Gender Composition: Men 5,722 5,369 5,368 Test and performance Women 17,027 17,611 16,775 Name 2017 2018 2019 Age category: Under 25 years old 3,269 3,330 1,822 Average annual training hours per employee 13 11 174 25 to 50 years old 14,619 14,889 15,040 Number of employees tested 25,000 20,700 16,815 Level of education: Average grade point summary,% – – 74.6 Higher 6,744 7,111 6,706 Training videos cover a wide range of topics, than 16 webinars about sales, service and Specialized secondary 9,454 9,203 9,629 from services and working processes to product line were carried out. Secondary 5,897 5,879 5,183 issues of anti-corruption activities. More Incomplete higher 554 787 625

Educational materials 7.3.6. Social projects Name 2017 2018 2019 Public life. About 150 events were held, Number of webinars 0 4 16 About more 15 thousand of employees were Number of training videos 129 130 125 events involved within the framework of state and professional holidays. Competitions were 150 were held held at these events, gift certificates were 7.3.5. Diversity and equal opportunities delivered, field trips were organized to More addresses of, for example, war veterans and thousand of employees (GRI 405-1:405-2) war workers. 15 were involved In annual studies of staff involvement, an Corporate Fund “Fund of Social Projects at NC assessment of social well-being in workforce GRI: Kazakhstan Temir Zholy JSC in conjunction assistance in the amount of 400 thousand is made. Study is carried out in accordance with Development Fund of Social Projects KZT was collected. with Methodology for study of involvement of DIVERSITY AND EQUAL “Samruk-Kazyna Trust” was initiators for personnel of Samruk-Kazyna JSC using web OPPORTUNITIES children under the project “Tugan yelge Within the framework of the III Republican survey. 405-1 Diversity of governance bodies and Sayakhat”. About 100 children of employees forum of tripartite partnership NGO-business- employees took part in it. state “ASAR” memorandum of cooperation Employment, selection and promotion of 405-2 Ratio of basic salary and was signed with joint-stock company employees are carried out on the basis remuneration of women and men Corners were organized for children “Support Center of Civil Initiatives”. This of professional abilities, knowledge and master class on drawing and weaving with makes it possible to use network of branches skills in accordance with internal rules, the participation of show animators on free of charge, carrying out activities under on equal conditions. Discrimination is not the occasion of Children’s Day. Charity event grant financing. This right is used exclusively allowed. called “Let’s Get Child to School” was held by grantees of this organization. Initiative before new academic year, more than 280 provides systematic approach to promoting children of employees were awarded school corporate social responsibility and promoting kits for students of grades 1-7. Assistance contribution to development of the country. was provided to injured in Arys, financial

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for Citizens, partner companies took part in labor results. Employee has its detailed the sporting event. working plan and strives to achieve planned targets. Incentive programs of production Motivation and encouragement. A cor- personnel are constantly being improved. porate culture has been formed based on For example, 46 types of services provide main values: energy for results, everywhere for payment of commission. together, technology and innovation, our client is the whole country. This ensures co- Non-material types of incentives are also ordinated work based on trust, honesty and practiced – recognition of merits of employee responsibility. by colleagues, management. In honor of public holidays and anniversaries, best Active contribution of each employee employees who achieved high results with to common cause, as well as ensuring their work are awarded. disclosure of employee’s potential, are key to effectiveness of activities. During the reporting period, more than one and half thousands of employees were An incentive system has been introduced, awarded with honorary certificate. which has a transparent system for evaluating

Number of employees who received incentives

Event 2018 2019

International Women’s Day – 98 Nauryz Holiday – 244 Contests and environmental promotions. the Fund. More 100 of our employees took Defenders of Fatherland Day – 152 In order to support young professionals, part in health and educational program on Communication and Information Workers Day 5 120 working at production facilities, competition the basis of preventive center in Almaty Capital Day 92 110 “The Best in Profession”, “The Best region Arman Dala with the participation Anniversary Dates – 172 Employee” was introduced. Based on of educational center Bonas MacFarlane World Post Day 105 291 the results of three-week online voting, Education Kazakhstan. For successful completion of production projects – 264 leaders, who were awarded by the Chairman of the Management Board of the Fund, were Every year employees take part in sports Honorary title “Uzdik baylanysshy” 3 6 determined. A contest in style of “Silicon and athletics events, marathons, organized Valley” was held for the World Post Day, by the Fund, and sectoral ministries. Work with young professionals. Nowa- To motivate and strengthen sports spirit more than 300 employees took part in it, For example, employees took part in the 6th days, requirements for young profession- of Jas Samuryq employees, a video clip and valuable prizes were awarded based on Spartakiad among employees of Group als are becoming higher due to increased was developed with the participation of the results of winners. of Companies of the Fund, as well as in competition and development of scien- employees involved in sports disciplines. sport competition of the Ministry of Digital tific and technological progress. In view Meetings of Youth Council with management Within the framework of the World campaign Development of Innovations and Aerospace of this, our youth is source of innovative are held where ideas and proposals on “World Clean up day 2019”, territory was Industry, where the Company took 1st place proposals. implementation of projects of Youth Council cleaned in conjunction with movement “Let’s in cycling. are discussed. do it, Qazaq eli”. Using slogan “Birge taza Main goal of work with youth is to create Kazakhstan”, employees of Central Office and II Post Games were held on the eve of conditions and guarantees for cultural, An excursion of youth headquarters of 23 branches took part and collected 43 tons celebration of Independence Day for professional progress, and development of Samruk Kazyna JSC was organized to of garbage, planted 768 trees. Memorandum celebration of 145 anniversary of UPU. Our creative potential for them. Information and Logistics Center “YUG”. of joint cooperation on Econetwork project employees, representatives of the Ministry Whole route of parcel is shown from receipt was signed, piloted in July 2019 in two of Digital Development, Innovation and We have created a Youth Council from active at sorting center until they are delivered branches of AB “Almaty Post Office”. Aerospace Industry, NJSC SC Government employees of branches and central office, to supermarkets of parcels and to our aged 16 to 29, quantity is more than 100 customers. Successfully developing projects Tree planting was organized jointly with Collected people. The Council presents credit programs were presented, among them are fulfillment Baytak Bolashak LLP. 150 employees took tons of STB for young specialists. Issues and centers which provide online stores with part, more than 100 trees were planted. Our problems of youth are discussed; patriotic whole service, from receiving orders and employees planted trees on UPU Valley in 43 of garbage hour in memory of heroes of war is conducted. goods packing to their delivery to customers, celebration of the 145th anniversary of UPU in They take part in the events to attract young network of partner network, our payment Nur Sultan in October of the reporting period. Planted specialists for further employment (job fair, cards for online shopaholics Aliexpress and competition “The Best in Profession”, etc.). E-commerce, as well as work of digital offices Sport life. Recreation program was organized For example, Enactus 2019, Hackathon, job and our 24-hour online office post.kz. for production employees supported by 100trees fair, “One day with courier of EMS Kazpost”.

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As part of the Youth Year, in November 2019, (Nur-Sultan), State Municipal Management contracts including human rights clauses or forum Jas Samuryq was held with Company Polytechnic College (Nur-Sultan), ASSESSMENT OF ACTIVITIES ON HUMAN which were assessed in terms of human rights the participation of youth asset of group Eurasian National University named after RIGHTS of portfolio companies of the Fund, which L. N. Gumilev. 412-1 Subdivisions to relation of which was attended by the delegation of 25 compliance assessment of human rights or LOCAL COMMUNITIES representatives of the Youth Council. Joint work with Private Enterprise “Corporate impact assessment due to human rights were 413-1 Subdivisions, implementing cooperation A meeting was held with curators, report on University Samruk-Kazyna” was continued conducted programs with local communities, impact work done, as well as plans for future were on development of Jas Orken and Digital 412-2 Employee training on human rights assessment on local communities ad their discussed. Summer programs. So in 2019, according policies or procedures development to Zhas Orken program, 5 young specialists 412-3 Significant investment agreements and 413-2 Subdivisions with significant actual and Constant work with universities is conducted, were rotated, one specialist was employed. potential negative impacts on local communities young professionals are provided with Under the programs “Digital Summer” and opportunity to pass internships and practical “Zhas Orken Kazpost edition”, 5 trainees training. Memoranda of cooperation were were rotated, 4 young specialists were can report about any violations directly to with the participation of management and concluded with Financial Academy JSC employed. management or using current “hot line”. representatives of local executive bodies.

Number of young specialists (GRI 413-1, 413-2, 415-1) For example, as part of celebration of the International Day of Older Persons, World Program 2017 2018 2019 In honor of state holidays, significant dates, Post Day, Youth Council, together with young anniversary meetings, veterans of war, labor, specialists of program “Zhas Orken Kazpost Digital Summer (completed internship) --- 5 3 honorary workers, war workers, pensioners edition”, congratulated our pensioners. ZHAS ORKEN Kazpost edition (employed) ------4 are invited to join these congratulatory events Zhas Orken (rotated) 1 5 7 Work with universities (concluded memorandum) 3 2 3 Job training 12 14 29 7.3.8. Suppliers and Customers

(GRI 414-1, 414-2) 7.3.7. Rights of employee GRI: Contract with supplier of goods, works and (GRI 406: 411) GRI: SUPPLIER SOCIAL ASSESSMENT services includes a clause on supplier’s 414-1 New suppliers which were assessed compliance with the law and requirements We adhere to principles of NON-DISCRIMINATION using social criteria for social responsibility during work respect for human rights, 406-1 Incidents of discrimination and 414-2 Negative social impacts in supply performance, or rendering of service, or including in non-discrimination corrective actions taken chain and actions taken goods supplying. There are no cases of non- compliance or violation of this requirement in on any grounds – racial, FREEDOM OF ASSOCIATION AND PUBLIC POLICY the reporting period. national, social, and religious COLLECTIVE BARGAINING 415-1 General monetary value of donation and others, there are no cases 407-1 Operations and suppliers which right to political purposes (GRI 416-1, 416-2) of discrimination; labor relations to freedom of association and collective bargaining may be at risk CUSTOMER HEALTH AND SAFETY Our services do not affect health and safety are based on legislation and 416-1 Assessment of impacts of product of consumer. There are no cases of non- Collective Agreement. CHILD LABOUR and service categories on health and safety compliance with the regulatory requirements 408-1 Subdivisions, where suppliers with 416-2 General number of noncompliance and voluntary codes concerning impact of significant risk of child labor usage with regulatory requirements and voluntary services on health and safety of consumers. Any employee is entitled to use freedom of codes related to impact of products and association and collective bargaining, this FORCED OR COMPULSORY LABOR services to health and security right of employee is not exposed to any risk. 409-1 Subdivisions, where suppliers with significant risk of forced or compulsory The Company excludes use of child and labor usage forced labor in its activities. 7.3.9. Violation of the law SECURITY PRACTICES (GRI 412-1: 412-3) 410-1 Share of security personnel trained The Company strives to achieve high due to lack of efficiency in work. Internal in human rights policies or procedures standards in its activities and become mechanisms and processes will continue to Applying for a job, an employee enters into an the first in the industry. Compliance with be improved in order to reduce and prevent individual labor contract with the Company RIGHTS OF NATIVE AND SMALL- the law is basis in achieving goals set, in any offenses. which provides for all rights of employee NUMBERED PEOPLES implementing strategic objectives. Principle in accordance with the law, and also gets 411-1 Incidents of violations involving of zero tolerance for offenses is being In the reporting period, in terms of acquainted with its rights and obligations rights of native peoples implemented. None of employees shall allow legislative support of activity, legal support stipulated in job instruction. Employee violation of the law. Existing violations occur was provided for five bills, two by-laws

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and two orders of the First Deputy Prime GRI: Minister of the Republic of Kazakhstan. Legal initiatives the Company implements MARKETING AND LABELING5 within the framework of cooperation with 417-1 Kinds of information on product and associations, where it is member. services, required by procedures 417-2 Non-compliance with regulatory (GRI 417-2, 418-1, 419-1) requirements and voluntary codes related to information and marking on products and Judicial acts 1, concerning violation of rights: services 417-3 Non-compliance with regulatory Name 2018 2019 requirements and voluntary codes related to Employee 5 1 marketing communications Company as an employer 9 7 CUSTOMER PRIVACY Supplier 4 7 418-1 Substantiated complaints concerning Company by the Supplier 4 8 breaches of customer privacy and losses of Consumer of services 10 7 customer data Companies as Service Provider 8 8 Consumer privacy 0 0 COMPLIANCE WITH THE REQUIREMENTS IN SOCIAL AND ECONOMIC AREAS 1 Judicial acts (decisions, resolutions, sentences). 419-1 Non-compliance with the laws and regulations in social and economic areas

Judicial acts6 (decisions, resolutions) towards the Company:

Name 2018 2019

Obstruction of officials of state inspections and bodies of state control and supervision in the performance of their official duties, failure to comply with decrees, orders and other requirements --- 3 Failure by banks and organizations engaged in certain types of banking operations of obligations established by the tax legislation of the Republic of Kazakhstan 74 --- Violation of legislation on the social protection of persons with disabilities --- 1 Violation of the rules for the improvement of the territories of cities and settlements, as well as destruction of infrastructure, destruction and damage of green spaces of the city and settlements 1 --- Incomplete and (or) untimely payment of non-tax payments and proceeds from the sale of fixed capital to the budget, with the exception of the receipt of funds from related grants --- 1 Violation of legislation on payments and payment systems, requirements related to banking customer service --- 1 Violation of the order and terms of consideration of applications of individuals and legal entities --- 1 Violation of the legislation of the Republic of Kazakhstan on counteracting the legalization (laundering) of proceeds from crime and the financing of terrorism --- 6 Total: 75 13

5 The Company does not have services required by the procedures (GRI 417-1), there are no cases of non-compliance with the regulatory requirements and voluntary codes relating to marketing communications (GRI 417-3).

6 Judicial acts (decisions, resolutions, sentences).

90 91