Kazyna Capital Management joined UN Principles for Responsible Investment

In October 2022 Kazyna Capital Management joined UN-supported Principles for Responsible Investment, being the first CIS quasi-public financial institution to join the world leading network of institutional investors, who are committed to the concept of ‘responsible investment’ in their investment practices. Over the last year, the number of PRI signatories has increased to more than 5,000 signatories globally, representing more than USD 121 tln in assets under management. Among PRI members are international private equity funds aimed at further development of ‘responsible investment’ practices in the private equity industry. PRI members are committed to the 6 principles of Responsible Investment: Integrate ESG standards into investment analysis and decisions; Considerate ESG factors in policies and practices; Requirements for recipients of investment to make adequate disclosure of environmental, social and governance issues; Promote the adoption and implementation of ESG principles within the investment industry; Increase the effectiveness of implementing the responsible investment principles; Report on activities and progress made in implementing the principles. The global trend of ‘responsible investment’ and its impact on the sustainability and profitability of projects is reflected in Harvard Business School's research findings, i.e. each dollar invested in sustainable companies generated 51% more income than companies with lower sustainability practices. In addition, 97% of LP (limited partner) expects that responsible investing will be increasingly significant for PE (private equity) market over the next 2 years. Kazyna Capital Management, being the key driver of the private equity infrastructure development in Kazakhstan declared Promoting sustainable business based on internationally recognized environmental, social and governance (ESG) standards one of its strategic priorities. With the assistance of KCM, its funds evaluate project proposals for ESG eligibility. The company plans to develop advanced instruments that will allow to monitor any ESG-related risks throughout the life cycle of a project. “Today, KCM's portfolio includes about 100 investment projects exclusively in non-resource sectors of the economy. We believe the intensive integration and monitoring of ESG factors will result in a higher "quality" of investment portfolio that is less vulnerable to external market changes in the long term,” - Ainur Kuatova, the CEO of Kazyna Capital Management JSC. David Atkin, CEO at the Principles for Responsible Investment, comments: “We are pleased to welcome Kazyna Capital Management as a signatory to the PRI, thereby highlighting their strong commitment to integrating responsible investment principles into their activity and acknowledging the importance of ESG issues to investments. We look forward to working with Kazyna Capital Management in furthering their responsible investment activity.” The commitment of KCM to the PRI will increase the Company's visibility to institutional investors and provide an opportunity to evaluate the progress in ‘responsible investment’ based on the industry standards.