The Bank’s Contribution to the UN Sustainable Development Goals

• implementation of social projects and programs;
• implementation of initiatives aimed at increasing access to financial services;
• charitable donations and sponsorship support.

• creating safe working conditions and promoting employee health;
• providing social support to employees.

• developing training programs and organizing employee education;
• supporting professional development at the Bank’s expense.

• implementation of initiatives aimed at supporting women;
• implementation of specialized housing programs for women;
• creating equal working conditions and career opportunities;
• ensuring a fair and equal performance evaluation and compensation system

• providing decent working conditions;
• contributing to regional development and generating multiplier effects across related industries and the broader economy.

• implementation of digital technologies;
• automation of the Bank’s business processes.

• Ensuring access to affordable housing;
• Supporting and implementing green urban initiatives.

• promoting energy-saving practices;
• reducing resource consumption (energy and water);
• optimizing paper document flow through automation of the Bank’s business processes.

• maintaining cooperation and partnerships in support of sustainable development

UN Sustainable Development Target

Establish sound policy frameworks at the national, regional, and international levels, based on pro-poor and gender-sensitive development strategies, to support accelerated investment in poverty eradication actions

Bank’s Contributio

Implementation of social projects and programs:

Social bonds totaling KZT 209.9 billion were issued to fund a social housing program.

The share of social mortgage loans in the total portfolio accounts for 39 %. As of the end of 2024, the Bank’s social loan portfolio comprised 93,584 loans, totaling KZT 1,363 billion.

In addition, a number of proprietary and joint social initiatives were implemented in cooperation with government bodies and external partners. More detailed information is provided in the section “Implementation of Social Programs.”

Initiatives to improve access to financial services:

To improve the accessibility of financial services for the population, the Bank follows a low-fee policy. The Bank decided to eliminate fees for concluding a housing constenction savings contract and for increasing the contractual amount.

In 2024, the Bank introduced a change in its fee system to support customers in emergency situations:

• No fees are charged for collateral replacement if the pledged property is declared hazardous or has been damaged by a natural disaster.

The Bank also offers a wide range of products and convenient services, including remote service channels, continuously develops digital technologies, and ensures cybersecurity.

Charitable donations and sponsorship support:

Throughout the year, the Bank’s employees actively participated in various charitable projects. They also took part in civil society initiatives, such as assistance to victims of floods, tree planting, providing New Year gifts to orphans and children without parental care, and distributing school supplies to children with disabilities before the school year.

UN Sustainable Development Target

Ensure universal health coverage, including financial risk protection, access to quality essential health care services, and access to safe, effective, quality, and affordable essential medicines and vaccines for all.

Bank’s Contribution

Creating safe working conditions and promoting employee health:

The absence rate due to illness was 0.02 %, with the following safety metrics recorded:

• Lost Time Injury Frequency Rate (LTIFR) – 0 %;
• Lost Time Accident Frequency Rate (LTAFR) – 0 %;
• Accident Severity Rate – 0 %;
• Fatal Injury Frequency Rate – 0 %;
• Occupational Disease Rate – 0 %;
• Lost Days Rate – 0 %.

Providing social support to employees:

The Bank provides employees with a broad range of benefits and compensation as part of an extensive social package. The following types of social support are available to employees: financial assistance for specific life events, voluntary health insurance (coverage in case of illness), relocation compensation, support in resolving housing-related issues. Additionally, the Bank reimburses 50 % of the cost of gym memberships for employees.

UN Sustainable Development Targets

By 2030, substantially increase the number of youth and adults who have relevant skills, including technical and vocational skills, for employment, decent jobs, and entrepreneurship.

Bank’s Contribution

Development of training programs and implementation of employee training initiatives, supporting the professional development of staff through the Bank’s own funding:

In 2024, a total of 985 Bank employees participated in external training programs, accounting for 66 % of all employees who underwent training. Among them, 15 employees from the Bank’s Central Office completed external training courses focused on sustainable development and ESG topics.

Internal training covered 1,494 employees in 2024, representing 100 % of the total workforce.

UN Sustainable Development Targets

Ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision-making in political, economic, and public life. Eliminate all forms of discrimination against all women everywhere.

Bank’s Contribution

Implementation of initiatives aimed at supporting women:

Women represent 58 % of the Bank’s total workforce (869 out of 1,494 employees).

In accordance with the provisions of the Bank’s Corporate Governance Code, the recommended share of women on the Board of Directors and the Management Board is no less than 30 % of the total number of members. As of the reporting year, women held 40 % of seats on the Board of Directors (2 out of 5 members). Among the Bank’s top executive positions (Management Board members), 43 % are held by women (3 out of 7 members).

Women hold 46 % of all leadership positions at various levels, including junior, middle, and senior management. Additional data on female employees is provided in the section “Diversity and Equal Opportunity.”

Implementation of specialized housing programs for women:

The Bank supported 3,700 women with KZT 41.3 billion in financing under the Umay mortgage program in collaboration with the Asian Development Bank.

All of the bank’s customers are individuals. By the end of 2024, women made up 59% of depositors and men 41%, while women made up 55% of borrowers and men 45%. Although men and women have equal access to mortgage terms, analysis of the Bank’s lending database reveals some gender-based differences. Thus, the average loan amount for women is lower than for men (KZT 16.8 million vs. KZT 19.5 million); the average age of female borrowers is higher than that of male borrowers (42 vs. 39 years); women are more likely to apply for loans with co-borrowers (14 % vs. 8 %), the average initial down payment made by women is lower than that of men (women account for 52 % of the total number of borrowers in the Bank’s housing loan portfolio).

Creating equal working conditions and career opportunities:

The Bank has established internal policies such as the HR Policy, Sustainable Development Policy, and Code of Business Ethics, which ensure non-discrimination based on gender, age, race, political views, religion, and other similar grounds.

The Bank has an ombudsman institution and a conciliation commission to handle complaints regarding violations of the Code of Business Ethics. The position of ombudsman is currently held by a woman.

There were no reported incidents of discrimination in the reporting year.

Ensuring a fair and equal performance evaluation and compensation system:

In 2024, the average base salary ratio between men and women across employee categories was 1:0.8.

UN Sustainable Development Targets

Promote sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all.

Bank’s Contribution

Providing decent working conditions:

The Bank provides decent working conditions for 2,714 individuals (including 1,494 full-time employees, 70 non-staff employees, and 1,150 agent-consultants). Among them, 14 employees of the Bank are persons with disabilities.

The Bank adheres to the principles of the UN Global Compact, the Corporate Governance Code, the Sustainable Development Policy, the Labor Relations Regulations, and the Internal Labor Regulations to ensure compliance with human rights and fair labor practices. There were no grievances filed against the Bank in the reporting year for violation of labor relations practices. There are no divisions within the Bank where child labor, forced labor, or the involvement of young workers in hazardous tasks is practiced.

A collective bargaining agreement has been concluded between the employer and employees. In the Bank, 100 % of the total number of employees are covered by collective bargaining agreements.

Contributing to regional development and generating multiplier effects across related industries and the broader economy:

The Bank plays a significant role in promoting regional development, which in turn generates a multiplier effect across related sectors and the national economy. By expanding access to affordable credit, the Bank facilitates the revolving use of funds for housing constenction. As of the end of 2024, a total of 12,120,785 square meters of residential housing (apartment buildings) was commissioned across the Republic of Kazakhstan. Of this, the Bank financed 15 % or 1,758,840 square meters.

This multiplier effect results in growth in adjacent sectors, including the production of building materials, electrical equipment, metallurgy, petrochemical industries, and household goods for furnishing new homes.

The Bank’s housing projects also contribute to the development of small and medium-sized enterprises, improvement of the urban and enral architectural landscape, and increased tax revenues from constenction activities. This includes property taxes, personal income tax from constenction sector employees, and value-added tax on materials used in constenction.

This housing constenction financing mechanism helps sustain the planned pace of residential development, thereby supporting job creation across multiple sectors, ensuring employment, and contributing to income growth for the population.

UN Sustainable Development Targets

Significantly increase access to information and communication technology

Bank’s Contribution

Implementation of digital technologies:

The Bank ensures effective compliance with the legislation of the Republic of Kazakhstan, regulatory requirements, and leading global standards and practices in the field of information security at the organizational, methodological, and technical levels through the Bank’s Information Security Management System. The Bank’s IT departments conduct regular (ongoing) stress testing of its information systems in accordance with the Bank’s internal regulations for managing vulnerabilities, threats, and system updates.

Complete information about the Bank’s work in 2024 on the development and enhancement of digital channels is available in the Bank’s 2024 Annual Report published on the official website hcsbk.kz in the About the Bank/Reporting section.

Automation of the Bank’s business processes:

In 2024, all planned activities related to the automation of the Bank’s business processes were fully implemented. Complete information about the Bank’s 2024 efforts to develop and automate its business processes is available in the Bank’s 2024 Annual Report published on the official website hcsbk.kz in the About the Bank/Reporting section.

UN Sustainable Development Targets

Ensure access for all to adequate, safe, and affordable housing and basic services and upgrade slums by 2030;

Strengthen efforts to protect and safeguard the world’s cultural and natural heritage.

Bank’s Contribution

Ensuring access to affordable housing:

Throughout its operations, the Bank has attracted a total of KZT 897 billion in budgetary funds under national and regional programs. As of 1 January 2025, KZT 859 billion, or 96 percent of the total attracted funds, had been utilized (including revolving funds, KZT 1,030 billion, or 115 percent of the total).

As of 1 January 2025, the Bank had issued a total of 573,000 loans amounting to nearly KZT 7.3 trillion. In 2024 alone, 71,450 loans were issued for a total of KZT 1.3 trillion. The Bank’s loan portfolio grew by 8.5 %, reaching KZT 3.5 trillion.

Supporting and implementing green urban initiatives: 

The Bank issued green mortgage loans to 1,255 customers in the amount of KZT 31.4 billion. It also cooperates with 25 key stakeholders in the constenction sector to promote green building practices.

UN Sustainable Development Targets

Implement the 10-Year Framework of Programs on Sustainable Consumption and Production, with all countries taking action, and developed countries taking the lead, considering the development and capabilities of developing countries;

By 2020, achieve the environmentally sound management of chemicals and all wastes throughout their life cycle in accordance with agreed international frameworks and significantly reduce their release to air, water, and soil in order to minimize their adverse impacts on human health and the environment;

By 2030, achieve the sustainable management and efficient use of natural resources;

By 2030, substantially reduce waste generation through prevention, reduction, recycling, and reuse;

Encourage companies, especially large and transnational companies, to adopt sustainable practices and to integrate sustainability information into their reporting cycle.

Bank’s Contribution

Promoting energy-saving practices:

The Bank consistently conducts environmental campaigns and training sessions involving its employees to foster a culture of environmental responsibility. In 2024, the Bank held citywide tree planting events (350 trees were planted across Kazakhstan) and organized clean-up efforts in cities and Bank premises.

By the end of 2024, the Bank’s Central Office had delivered 1,720.20 kg of paper; 1,111.70 kg of glass, and 131.06 kg of plastic for recycling and disposal via hydropulping through a secondary raw materials organization.

To reduce its environmental footprint from operational processes and promote the sustainable use of natural resources, the Bank has set goals such as installing automatic lighting control systems (motion sensors) in the halls: in 2025 at the Central Office, in 2026 at 10 branches, and by 2027 in all 20 branches.

Reducing resource consumption (energy and water):

The Bank continues to work on reducing resource consumption both to improve the environmental situation for society at large and to optimize operational costs. In the reporting year, the Bank adjusted its consumption accounting methodology, resulting in more accurate data on energy and water use. See the sections “Energy Consumption and Energy Efficiency” and “Water Consumption.” In 2024, the Bank reduced heat energy consumption by 35 % compared to the previous year.

Optimizing paper document flow through automation of the Bank’s business processes:

In 2024, the Bank reduced paper usage by 15 % compared to 2023.

Strengthen the means of implementation and revitalize the global partnership for sustainable development

UN Sustainable Development Targets

Adopt and implement investment promotion regimes for least developed countries

Bank’s Contribution

Maintaining cooperation and partnerships in support of sustainable development:

1. The Bank is a co-founder of the National ESG Club, whose mission is to promote the achievement of the Sustainable Development Goals and an effective energy transition in the Republic of Kazakhstan through the integration of ESG principles.
   The Club aims to promote ESG principles to support the achievement of the SDGs, improve energy efficiency, reduce environmental impact, enhance working conditions, and ensure respect for human rights.}
   As part of its social responsibility, each co-founder of the Club may take responsibility for a specific area, which they will actively promote and develop. The Club serves as a platform for discussing the implementation of ESG approaches, responsible investment, and support for the development of the green and sustainable project market.
   Looking ahead, the Bank plans to implement new projects in the field of sustainable development and ESG, and to attract sustainable investments for its projects, including through the collaborative efforts of the ESG Club.
2. The Bank has joined the United Nations global initiative on the Women’s Empowerment Principles.