Otbasy Bank considers climate risk management as an important part of its sustainability strategy, which is implemented with the participation of corporate governance bodies. In 2023, in order to institutionalize the ESG agenda, the Sustainability Policy was approved, establishing the strategic principles for managing environmental impact, social responsibility and climate adaptation issues. In accordance with this policy, sustainable development is recognized as a fundamental principle of corporate governance, encompassing not only strategic decisions, but also the daily activities of all employees and officers at all levels.

Management of the ESG agenda is carried out within the framework of an integrated corporate governance structure. The Board of Directors provides oversight into the implementation of the sustainability strategy, including the climate component. The Management Board, jointly with core departments and specialized committees, is responsible for the execution of ESG initiatives, their integration into operational processes, as well as for compliance with relevant standards at the level of internal regulation and external reporting.

The Risk Committee, in addition to regular analysis of factors influencing the sustainability of the business model, exercises control and preliminary approval of internal regulatory documents relating to climate and ESG risks. The Committee reviews the results of the assessment of the impact of climate risks on the Bank's activities in the short, medium and long term. Coordination of climate risk management functions is carried out by core departments under the supervision of the executive level.

The Bank's risk management system also includes reputational, ESG and climate risks, which are recognized as key in the context of sustainable development. Management of these risks is carried out based on media monitoring, feedback from stakeholders, regular consultations, as well as assessment of external and internal impact factors, including physical and transition climate risks. The main objective is to minimize the negative impact of the Bank's activities on the environment, increase trust from clients and partners, ensure the sustainability of the business model and strengthen social stability.

Internal documents of the Bank define the procedure for assessing and monitoring ESG and climate risks, including the development and implementation of key risk indicators (KRI) and key performance indicators (KPI), reputational risk management procedures, as well as the assessment of physical and transition climate factors. In the future, a phased integration of ESG principles into contractual relationships with suppliers and counterparties will be considered, with an emphasis on the sustainability and transparency of supply chains.

Special attention is paid to the development of a corporate culture of sustainability, including regular training of employees and professional development of management in the field of climate risk management and sustainable development. These measures ensure the integrity of the approach, contribute to the formation of responsible business practices and allow the Bank to effectively adapt to growing regulatory and market expectations. The corporate governance system of the Bank ensures the systemic and comprehensive integration of ESG and climate risks into strategic and operational management, strengthening the sustainability of the business model and creating a foundation for long-term development in accordance with international and national standards.