Greenhouse Gas Emissions and Other Air Pollutants

The Bank is committed to supporting the national goal of the Republic of Kazakhstan to achieve carbon neutrality by 2060 and contributes to global efforts for climate change mitigation and adaptation.

The Bank strives to reduce the environmental impact of greenhouse gas (GHG) emissions generated from stationary and mobile sources, as well as from purchased energy used in operational processes. The first step toward reducing this impact is to conduct a quantitative assessment of GHG emissions from these processes.

In 2023, the Bank, in collaboration with external consultants, developed a methodology for calculating GHG emissions within the Bank and for the first time disclosed data under Scope 1 and Scope 2 categories to a wider audience.

The following table presents the Bank’s key environmental and climate-related indicators:

GHG emissions	2023	2024
Total direct GHG emissions (Scope 1), CO₂-eq (tons/year)	305.13	402.46
Emissions intensity (Scope 1), CO₂-eq (tons/year per employee)	0.16	0.27
Total indirect GHG emissions (Scope 2), CO₂-eq (tons/year)	5,808.44	2,313.22
Emissions intensity (Scope 2), CO₂-eq (tons/year per employee)	2.96	1.55

In 2024, Scope 1 emissions increased by 32 % due to higher consumption of diesel and gasoline compared to the previous year.

At the same time, Scope 2 emissions decreased by 60 %, which was mainly driven by a reduction in heat energy consumption and a change in the GHG accounting approach. Previously, the Bank accounted for electricity and heat consumption across all premises, including leased ones. Starting from 2024, electricity and heat consumption for leased premises is included in other indirect GHG emissions (Scope 3).

Continuing to align with international best practices, the Bank developed a methodology in 2024 for calculating Scope 3 GHG emissions, including those from its mortgage portfolio, and carried out a quantitative assessment in partnership with an external expert organization.

To estimate Scope 3 emissions, the following categories were identified as most relevant to the Bank based on the GHG Protocol:

Category 1: Purchased goods and services (office paper);
Category 5: Waste generated in operations;
Category 6: Business travel;
Category 7: Employee commuting;
Category 8: Leased assets;
Category 15: Financed emissions (mortgage lending).

Incorporating all these categories into the Scope 3 emissions assessment allows the Bank to perform a more accurate analysis and identify areas where its carbon footprint can be reduced and operational sustainability enhanced.

Other Scope 3 emissions were assessed in accordance with the GHG Protocol and the 2006 IPCC Guidelines for National Greenhouse Gas Inventories. Financed emissions under Category 15 were calculated in accordance with the Global GHG Accounting and Reporting Standard for the Financial Industry (PCAF):

	CO₂-eq, tons
Indirect GHG emissions (Scope 3)	4,414.90
Category 1: Purchased goods and services (office paper)	54.75
Category 5: Waste generated in operations	132.41
Category 6: Business travel	313.83
Category 7: Employee commuting	500.88
Category 8: Leased assets	3,413.03
Scope 3 emissions intensity (per employee)	2.96
Financed emissions (Category 15)	1,164,084.94
Mortgage lending	1,164,084.94
Financed emissions intensity (tons per m² of financed property)	0.052
Total Scope 3 emissions	1,168,499.84

As a result of these efforts, in 2024 the Bank obtained a comprehensive understanding of its carbon footprint and the environmental impact of its operations. This analysis enabled the identification of potential risks and opportunities for improvement, alignment with modern sustainable development standards, and the receipt of tailored recommendations and action plans from the external expert organization.

Additional actual data on GHG emissions is provided in the Bank’s ESG Databook, available on the Bank’s official website at hcsbk.kz under the Sustainable Development / ESG Reporting section.