KMG’s Board of Directors approved a corporate KPI for 2021 – threshold ESG score of 65, up by 5 points compared to the previous target. Also, for the next years, a Corporate KPI of ESG rating was set, which is a clear indicator of the Company’s control over, and commitment to sustainability initiatives.
In October 2021, Sustainalytics raised KMG’s ESG rating from 69 to 72. The Company’s ESG risk rating was improved from 34.5 to 28.4, moving KMG from the high risk category to the medium risk category and highlighting the Company’s strong positions in managing material ESG risks in the international oil and gas market.
KMG’s upgrade to the medium risk category is due to the Company’s solid progress in sustainability and active efforts to integrate ESG practices into the strategy and operations.
We delivered improvements in our environmental policy, water risk management, programmes on GHG emissions reduction and community development, fatalities among employees, policies and programmes against bribery and corruption, etc.
KMG’s key ESG challenges are still carbon emissions from operating activities and emissions from using the Company’s products, as well as community relations in our regions of operation.
A major goal for KMG is to solidify its standing as a company with a medium-range ESG Risk Rating by 2031. To that end, the Company has developed and approved an action plan to improve KMG’s ESG rating across key sustainability areas: decarbonisation, emissions, wastewater and waste, community management, human capital, and corporate governance.
Particular attention is paid to enhancing the sustainability culture. Sustainability training courses are held on a regular basis for employees of the Corporate Centre and subsidiaries and associates.