ESG risk management is part of the integrated risk management system of the Bank and is carried out within the framework of the general risk management architecture. ESG risks are considered as a combination of environmental, social, and corporate governance risks capable of influencing the financial stability, business reputation, and achievement of the strategic goals of the Bank.

ESG risks are included in the Risk Register of the Bank as a separate group and are taken into account alongside credit, market, strategic, operational, compliance, and liquidity risks, as well as information security and information technology risks.

Identification of ESG risks is carried out taking into account:

-     expectations of investors, clients, workers, and other stakeholders;

-     analysis of external and internal factors of impact;

-     assessment of potential conflicts and risks arising at various stages of implementation of the Bank's projects.

Based on the results of the analysis, a list of ESG risks is formed, approved by the Board of Directors as part of the Risk Register.

The structure of ESG risks includes:

Environmental risks – risks of non-compliance with the requirements of the legislation of the Republic of Kazakhstan in the field of environmental protection and other environmental obligations.

Social risks – risks related to compliance with labor legislation, ensuring safety and labor protection, protecting the rights of workers, the level of personnel engagement, and the development of human capital.

Corporate governance risks – risks related to the efficiency of the internal control system, the quality of oversight by the Board of Directors, and compliance with corporate governance principles.

Assessment of ESG risks is carried out according to the criteria of probability of occurrence and degree of potential consequences. By the results of the conducted assessment, social risks and corporate governance risks are assigned to a low level, environmental ones – to a medium level.

Monitoring of ESG risks is carried out on a regular basis with the submission of information to the authorized organs of the Bank. The Risk Register is used as an instrument of systematic tracking, analysis, and minimization of ESG risks, which contributes to the sustainable development of the Bank and the reduction of potential negative impact on clients and society