06-1
Sustainable development

Foreword

"Sustainability" is a kind of development that meets the needs of the present, but does not threatens the ability of future generations to meet their own needs," the United Nations International Commission on Environment and Development formulated this definition in 1987 and it is the guide for the Company in its activities.

The Company's activities in the field of sustainable development are largely determined by the specifics of the telecommunications sphere. To date, information technology has been built into almost all areas of the company's life and has become a driving force for society development. The ability to use the most modern technologies on the telecommunications market in combination with a high level of professional competencies allows the Company to systematically improve the quality of work and life of Kazakhstanis.

Sustainable development is an integral part of Transtelecom JSC's business strategy. This principle determines our approach to innovation, development and introduction of new products. Company's CEO, the Board of Directors and the Management Board of Transtelecom JSC jointly implement strategic leadership in the field of sustainability yet specialists from among the staff implement specific programs and initiatives.

Contribution of Transtelecom JSC to the community

Name Unit of measurement 2015 2016 2017
Shareholders
Dividends KZT mln. 472225 1263059 4336550
Employees
Total number of employees thousand people 3,241 3,427 3,267
Labor costs KZT mln. 4495977 5482953 6177799
Investments in training KZT mln. 70,257 129,88 271,236
Deposits to the pension fund KZT mln. 404874 522876 557583
Expenses for work safety raising KZT mln. 71,694 85,624 70,223
State
Income Taxes KZT mln. 1044815 1140485 1 497 537
Other taxes KZT mln. 835167 987350 1607552
Company
Membership fees, payments to trade unions, charity programs KZT mln. 30342 39696 43596
Environment
Costs for environmental programs KZT mln. 998 1023 1012
Name Unit of measurement 2015 2016 2017

Transtelecom JSC provides workplaces for more than 3000 people. Employees of the Company are the main component of sustainable growth, and the Company pays special attention to favorable and safe working conditions. HR policy of the Company is aimed at strengthening the human resources, building an effective system of motivation and creating conditions for the full development of personnel. Transtelecom JSC has the documents regulating the Company's actions in the field of sustainable development, including the Corporate Governance Code, the Human Resources Policy, the Environmental Policy, and the Corporate Social Responsibility Policy that defines the principles of the Company's social responsibility. The introduction of energy-efficient and environmentally friendly technologies is an obligatory component of the short- and long-term plans of Transtelecom JSC.

Actions of Transtelecom JSC in the field of sustainable development include the creation of favorable working conditions, assurance of safety in the workplace, environmental protection, socio-economic development of presence regions and populations' life quality improvement. The company strictly adheres to the principles of economic, environmental and social well-being of its stakeholders and regards it as an investment in the future.

Sustainability management structure

Implementation of sustainability principles is performed within the frameworks of interaction of the HR Development Department, Organizational Development Department and OHS Department.

HR Development department (hereinafter- HRD) cover socially important issues from sustainability point of view. Among them, the key issues are: personnel development and training, creation of a productive and pleasant working environment, support and motivation of employees. To monitor the successful implementation of sustainability principles, as well as identify potential areas for improvement, the HRD conducts annual surveys and questionnaires of the Company's employees.

Operational control in the field of occupational health and safety as well as environmental protection is performed by the Organizational Development Department, Occupational Health and Safety Department, which provide methodological support, supervision and overall coordination of Labor and Environmental Protection Service in all structural divisions of the Company. Moreover, the Organizational Development Department collects and analyzes data on the results of environmental monitoring at the Company's enterprises and draws up a report based on the results of this work, which is subsequently submitted to the Quality Council.

The OHS Service and Environmental protection service are available in all structural subdivisions of Transtelecom JSC, comprehensive and targeted inspections are regularly conducted as well.