06-6

Environmental protection

Environmental initiatives and approach to environmental protection

The environmental protection of Transtelecom JSC is carried out in accordance with the Environmental Code of the Republic of Kazakhstan and other laws and regulations in the field of environmental protection.

Transtelecom JSC does not cause significant harm to the environment while operating and does not conduct business in the fields which are potentially dangerous from the environment point of view. Nevertheless, we understand that the tasks of increased energy efficiency of activities, resource saving, reduction of negative impact on the environment are urgent for the Company as a leading player in the telecommunications and IT-technologies market operating throughout the territory of Kazakhstan.

We recognize the importance and priority of the environmental factor in the implementation of any activity and strive to contribute to a healthy life for future generations. With all the advantages of a high-tech telecommunications operator, we have all the prerequisites and conditions for helping the society move towards energy efficiency, reducing greenhouse gas emissions to the atmosphere and reducing the consumption of resources.

In 2017, environmental protection was ensured in the framework of drawing up and approval of standards, regulations, instructions aimed at compliance with the requirements of national legislation and international obligations taken. Transtelecom JSC strives to minimize its impact on the environment and apply the most advanced technologies to manage such impacts.

In order to improve the environmental management system, increase environmental responsibility at all stages of the production process, the Company has implemented ISO 14001 international environmental management standards (EMS) and ISO 50001 energy management.

The nature and environmental protection management is the assurance of environmental legislation, the requirements of the EMS of the Company, in relation to the subject of this industry the point is as follows: the disposal of natural resources, the maintenance of rational use and reproduction of natural resources, the preservation of the environment, the protection of environmental rights and legitimate interests of individuals and legal entities.

Based on the order of the head of the Company's branches, an employee responsible for environmental safety was appointed.

To maintain the EMS in working order, as well as to continuously improve its performance, the bylaws on EMS have been drawn up:

  • Identification and assessment of environmental aspects (hereinafter - EA);
  • EA Register;
  • Significant EA register;
  • Regulatory requirements register;
  • Goals, objectives and programs in the field of environmental management;
  • Guidelines for EMS.

On September 26, 2017, the Company was re-certified for compliance with ISO 14001 in the field of environmental protection.

The Company's management assumed responsibility for the implementation of the Environmental Policy, undertook to constantly improve the effectiveness of the environmental management system and assured that every employee of the Company is aware of personal responsibility for the implementation of legally established environmental requirements and norms. While carrying out its activities in the field of telephone and telegraph services, IP telephony services; telecommunications services, development and operation of communication networks, the Company fully realizes that its operation has an impact on the environment. List of issues considered by the Board of Directors. At the meetings of the Board of Directors the issues, taking into account the reduction of the negative impact on the environment, including during the approval of Company's structure; approval of the risk management report, approval of the risk mitigation program; approval of bylaws, for example: the KPIs methodology are considered.

To achieve environmental goals, the Company intends:
  • to follow the principle of a sound combination of the economic, environmental and social interests of the Company, the city and the region during the Company's Development Strategy drawing up;
  • to maintain and continuously improve the Company's environmental management system in accordance with ISO 14001:2004 requirements, considering it as one of the most important components of the advantages in the area of its work;
  • reduce and prevent all types of negative environmental impacts by allocating the necessary resources to environmental activities, developing and implementing measures to reduce the negative impact on the environment;
  • reduce the risks of environmental pollution associated with potential accidents and emergencies;
  • monitor the environmental performance of suppliers when purchasing services and goods;
  • use modern, highly efficient equipment to clean the emissions and discharges, waste utilization during project implementation;
  • carry out an internal audit of the Company's environmental management system in order to improve the efficiency of environmental activities and continuous improvement of environmental indicators;
  • strive to establish a constructive dialogue with authorities, the public and public organizations, publicly informing all stakeholders on environmental issues related to the Company's activities;
  • constantly improve the qualifications of the Company's employees and managers in the field of environmental protection to ensure their compliance with the requirements of the environmental legislation of the Republic of Kazakhstan and this Environmental Policy at their workplaces;
  • act in accordance with the requirements of the environmental legislation of the Republic of Kazakhstan.

Compliance with environmental requirements

The draft MPE standards have been drawn up in all branches of the Company, there are permits for emissions into the environment, emission limits for air pollutants, and declarations on payment for emissions to the environment for 2017. A program of industrial environmental control and an environmental action plan for 2017 has been drawn up.

No complaints and claims for the period of 2016-2017 from the regulatory monitoring bodies were received.

Over 2017 there are were penalties and other non-financial sanctions imposed for non-compliance with environmental legislation.

Use of energy resources and energy conservation

The activities of telecommunications companies have almost no negative impact on the environment. Sources of minor adverse effects may be wastes that are generated ­ as a result of the Company's offices operation, emissions to the atmosphere from the Company's vehicles, discharges of pollutants into water bodies. But all the objects of Transtelecom JSC - office buildings, sales offices and contact centers - consume electric­ energy. Therefore, one of the key tasks for the Company is to reduce electricity consumption, as well as introduce energy-efficient technologies, the Company is implementing the Energy Conservation and Energy Efficiency Program. As part of the program the Company performs the planning and monitoring of energy consumption, identification of best practices in the telecommunications industry, and implements the activities aimed at energy efficiency improvement.

The most important priority of the Company in the field of energy saving is to increase energy efficiency and optimize the use of energy resources.

In order to improve and further develop the ENM the bylaws have been drawn up and adopted:

  • The Company's energy policy for 2015-2017;
  • Goals and objectives of the Company in the field of energy efficiency improvement;
  • Action Plan to achieve energy goals and targets for 2015-2020;
  • Method of energy analysis, monitoring and calculation of energy efficiency;
  • Register of areas of energy significant use (consumption);
  • List of energy equipment significantly affecting the use of energy;
  • Register of legislative and other requirements in the field of energy management.

In 2016, the ENM inspection audit was held in the Company by "Russian Register" Certification Association (according to the contract No.340/10 of June 24, 2016) and it was recognized as meeting the requirements of ISO 50001:2011 standard.

The main direction of the energy policy of Transtelecom JSC is to increase energy efficiency, provide services with a high level of quality, meet the requirements and expectations of consumers, reduce the specific energy intensity of their production, complying with all legislative requirements in the field of energy conservation and energy efficiency.

The Company conducted an energy analysis

Specificity of the Company's energy consumption lies in the necessity of constant use of electric and thermal energy for the Company's production and administrative needs. Also, these types of energy provide the potential for energy efficiency improvement.

According to the information provided in the list of power equipment of the Company's branches, the equipment and personnel that significantly affect the use of energy have been identified:

  1. air conditioners and power supply devices of telecommunication equipment (table 1);;
  2. employees of the administrative and economic department, energy specialists, specialists of the quality management system of the Company's branches, the "Economic Support" department and "Telecommunications network management" department of the CO.

Weather conditions also indirectly affect the regimes of significant energy use.

Data on the power equipment of branches.
# Branches Total rated power, kW
Air conditioners ESPs
1 Aktobe 298,2 259,3
2 Almaty 721,1 214,3
3 Astana 552,2 873,5
4 Atyrau 296,2 222,3
5 Karaganda 344,7 158,6
6 Kokshetau 102,9 246,1
7 Kostanay 78,4 102,3
8 Kyzylorda 221,5 101,3
9 Zhambyl 233,4 172,1
10 Oskemen 96,8 100,5
11 Pavlodar 85,3 105,4
12 Semey 172,5 198,2
13 Shymkent 328,5 97,8
Total: 3531,7 2851,7
# Branches Total rated power, kW
Air conditioners ESPs
Fuel and energy consumption in Transtelecom JSC in 2015-2017
Indicator name Un. 2015 год
over 12 months
2016 год
over 12 months
2017 год
over 12 months
The gross volume of commodity output (GVCP) KZT mln. 22587,65 27368,828 71022,449
Electricity consumption million kW/h 9,723 10,383 10,072
The amount of electricity purchase costs KZT mln. 163,394 179,178 176,702
Average electricity purchase rate KZT/kW/h 16804,31 17,26 17,54
The volume of thermal energy consumption thousand Gcal 4,48235 3,951 4,586
The amount of costs for the purchase of thermal energy KZT mln. 34,796 31,371 37,641
Average purchase tariff for t/energy KZT/ Gcal 7762,9 7940,78 8208,35
Consumption volume of gasoline engine TNT eqt 567,69 623,790 648,595
The cost of purchasing gasoline motor KZT mln. 71,297 91,198 113,532
The average purchase price for gasoline engine KZT/TNT eqt 125 591 146 201 175 043
Volume of consumption of diesel fuel TNT eqt 178,554 163,102 138,707
The amount of expenses for the purchase of diesel fuel KZT mln. 20,843 18,579 20,455
Average purchase rate for diesel fuel KZT/TNT eqt 116 730 113 912 147 469
Indicator name Un. 2015 год
over 12 months
2016 год
over 12 months
2017 год
over 12 months
Share of expenses (%) by types of fuel and energy in KZT
Share of expenses (%) by types of fuel and energy in KZT

The main indicators of energy efficiency (energy performance indicator) is the following indicators - K1month and K2month as the ratio of acquisition costs of fuel and energy resources in the tenge to income in tenge in the reporting month and accumulated since the beginning of the year, respectively. This indicator is expressed as a percentage (%) and shows what share of income is spent on fuel and energy resources.

Data on the energy efficiency indicator К1acc for each analyzed year from the Company's branches, according to the form of F OM 6.3-12-01:

# Company name Indicator of energy efficiency, К1acc, %
2015 2016 2017
1 Aktobetranstelecom 1,68 1,73 1,8
2 Almatytranstelecom 4,14 3,26 3,2
3 Almatytranstelecom 1,08 1,02 0,76
4 Atyrautranstelecom 2,22 2,48 2,25
5 Zhambyltranstelecom 2,24 2,42 2,54
6 Karagandatranstelecom 2,58 2,77 2,52
7 Kokshetautranstelecom 2,89 3,1 3,2
8 Kostanaytranstelecom 2,17 2,47 2,78
9 Kyzylordatanstelecom 1,54 1,76 1,89
10 Oskementranstelecom 1,83 2,52 2,86
11 Pavlodartranstelecom 1,87 2,13 2,16
12 Semeytranstelecom 1,66 1,75 1,54
13 Shymkenttrastelecom 3,61 3,67 3,51
14 Transtelecom JSC 1,29 1,17 0,49
# Company name Indicator of energy efficiency, К1acc, %
2015 2016 2017
Costs of fuel and energy resources to incomes, %
Costs of fuel and energy resources to incomes, %
  • Coefficient К1acc, 2015, %
  • Coefficient К1acc, 2016, %
  • Coefficient К1acc, 2017, %
Name Unit 2015 2016 2017 Difference
(+/-)
2017/2015
Deviations
(+/-)
2017/2015
Costs with accumulation KZT 290 329 308 320 326 586 348 330 054 58 000 746 19,98
GTP with acc (income) KZT 22 587 645 040 27 368 828 000 71 022 449 000 48 434 803 960 214,43
Indicator, К1acc 1,29 1,17 0,49 -0,76 -61,84

It can be seen from the table that the cost of fuel and energy resources purchasing and income of Transtelecom JSC in 2017, as compared to the base year 2015, increased by 19.98% and 214.43%, respectively.

The indicator of energy efficiency as a whole for the Company over 2017 compared to the base year 2015 decreased by 61.84%.

The dynamics of changes in consumption of fuel and energy resources in volumes
Types of FER Unit 2015 2016 2017 Difference
(+/-)
2017/2015
Deviation
(+/-)
2017/2015
Electric power KW/h* 9 723 331 10 383 117 10 072 138 348 807 3,59
Heat Gcal 4 482 3 951 4 586 104 2,31
Dis. fuel tons 178 554 163 102 138 711 -39 843 -22,31
Petrol tons 567 690 623 790 648 595 80 905 14,25
FER types
FER types
  • Electricity, thousand kw/y
  • Thermal energy, Gcal
  • Gasoline, tons
  • Diesel fuel, tons

The potential for energy efficiency improvement over the next three years is no more than 3% of the baseline energy consumption in 2015.

In the future, electricity consumption will increase in connection with the implementation of new projects. The construction of a hardware and software complex, a communication platform along the railway line has been scheduled for 2017-2020.

In 2018, Transtelecom JSC plans to continue the implementation of the "Last Mile" project, providing for the installation of additional active equipment.

According to these projects, the power consumption of telecommunications equipment will be approximately 2,443,154 kW per year, according to preliminary calculations.

Emissions to the atmosphere and climate change

Guided by the principles of sustainable development, Transtelecom JSC pays special attention to control and reduction of the amount of pollutant emissions into the atmosphere. As part of production activities, all enterprises of the Company receive appropriate permits, and statistical information is provided annually to the supervisory authorities.

Total amount of pollutants emissions into the atmosphere in 2017 compared with 2016 decreased and amounted to 733.19 tons.

Emissions of gaseous pollutants by branches, tons
Branches 2015 2016 2017
actual
volume
amount actual
volume
amount actual
volume
amount
CO 3,64 2 378,53 3,76 2 632,00 3,90 56 740,00
Astana 55,69 44 470,00 59,12 71 569,00 40,32 41 076,00
Almaty 134,02 225 616,39 114,75 212 155,00 165,56 178 612,00
Aktobe 58,77 74 339,00 66,80 92 608,00 63,09 93 753,00
Atyrau 21,75 28 450,00 25,67 35 931,00 35,95 54 140,00
Zhambyl 21,93 90 468,00 67,87 103 795,00 68,42 113 405,00
Karaganda 62,23 65 180,03 65,77 73 970,00 60,57 72 643,11
Kostanay 25,89 25 870,00 36,30 40 638,00 38,07 48 796,00
Kokshetau 62,12 53 268,00 68,79 62 648,00 68,92 67 730,00
Kyzylorda 41,25 53 749,00 44,02 65 430,00 41,20 65 537,00
Oskemen 17,59 23 009,00 30,05 42 072,00 33,27 50 005,00
Pavlodar 34,48 45 108,00 39,95 55 924,00 46,01 68 951,00
Semey 37,31 48 806,00 38,50 53 898,00 33,75 50 549,00
Shymkent 34,62 45 292,00 33,96 48 372,00 34,16 51 936,00
DETC 74,32 63 833,00 62,81 61 821,00 0,00 0,00
685,61 889 836,95 758,12 1 023 463,00 733,19 1 013 873,11
Branches 2015 2016 2017
actual
volume
amount actual
volume
amount actual
volume
amount

The Company's operation of does not adversely affect the flora and fauna. The Company has no facilities located on the territory of national parks or nature reserves, specially protected natural areas.

Resource Saving

Year after year, the Company continues to reduce the impact of its activities on nature through the reasonable use of resources, in particular water and paper in the offices and branches of the Company.

Reduction of paper consumption takes pace due to the electronic document management system and electronic office notes. Moreover, we encourage the use of electronic tools in daily work instead of paper, and all settings of printing and copying equipment operate in an economical mode by default.

The Company promotes ecological culture in society as a basis for a more responsible attitude of people to the environment. The Company actively supports environmental initiatives of representatives of local communities, which form a responsible attitude towards nature and are aimed at nature preservation, its study and recovery. Employees of Transtelecom JSC act as volunteers, taking part in projects for landscaping, gardening and territories cleaning: the Company holds voluntary Saturday work every year in April, attended by thousands of our employees.

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