ESG Factor Management

The Bank integrates ESG factors into its Development Strategy and key business processes, including planning, reporting, risk management, investment, operations, corporate culture, and others. These factors are also embedded into decision-making processes at all levels (from the Sole Shareholder, governance bodies, and the Management Board to line employees) to ensure a balanced approach that considers both short- and long-term interests, as well as environmental, social, and governance aspects in decision-making.

Keeping pace with global trends, Otbasy Bank AO proactively develops and implements ESG-focused products and projects. This approach leads to the active incorporation of environmental, social, and governance principles into the Bank’s operations, all of which are aligned with sustainable development, risk mitigation, and enhanced corporate responsibility. The Bank is committed to expanding its portfolio of loans with clear environmental and social impacts, which by the end of 2024 represented 0.9 % and 39 % of the loan portfolio, respectively. This reflects the Bank’s recognition of the need to adopt the Equator Principles into its activities, and such integration efforts are underway.

Thus, in the reporting year, the Bank signed a Memorandum of Understanding with the Asian Development Bank for the Project on Inclusive and Green Housing Finance in the Republic of Kazakhstan. The project is scheduled to launch in 2025. The goal of this project is to promote gender equality, foster sustainable economic growth, and support green development. Implementation of the project will lead to an increase in the acquisition of energy-efficient, sustainable, green, and affordable housing by women and contribute to the development of the green mortgage market.