The Role of Kazakhstan's Private Business Sector in Promoting Sustainable Economic Expansion
Sustainable Developments Soaring in Kazakhstan's Private Sector
Step into Kazakhstan's bustling business scene, where responsible practices are becoming the norm. According to the 2024 UN Sustainable Development Report, the nation ranked 66th out of 167 countries in the 2023 Sustainable Development Goals (SDGs) Index, showcasing its determined leap towards eco-friendly business operations.
To delve deeper into Kazakhstan's progress and innovative sustainability initiatives, we had a spirited chat with Dinara Seijaparova, the UN Global Compact country manager in Kazakhstan, and Dina Khassenova, the deputy head of the UN Resident Coordinator's Office.
A Tsunami of Responsible Business Practices
Seijaparova shared her insights on the swelling tide of businesses adopting Environmental, Social, and Governance (ESG) principles. "Our businesses strive to surpass the global standard when it comes to responsible practices. The private sector aims to lead the way in sustainability, with hundreds of companies embracing ESG principles in their operations." She further pointed out that these companies are committed to supporting the SDGs, an international promise made in 2015 to eradicate poverty, combat climate change, and protect human rights.
Launched in 2000, the UN Global Compact is the world's most prestigious corporate sustainability initiative, with over 18,000 businesses and 3,000 stakeholders from across 160 countries. Focus areas for the UN Global Compact encompass human rights, labor standards, environmental protection, and anti-corruption.
A Momentous Gain in Global Compact Membership
Seijaparova showcased the rapid growth of the UN Global Compact in Kazakhstan, witnessing membership skyrocket from just seven companies to 104 within a year and a half. This burst in membership, Seijaparova noted, reflects a growing awareness of the SDGs and the practical support offered through Global Compact programs. She emphasized that, "Companies are recognizing the value in incorporating sustainability into their operations, not only as a moral responsibility but as a tool for long-term success."
In her view, sustainability represents more than just an obligation; it's an opportunity for innovation, increased competitiveness, and shaping a brighter future.
Recognizing the surge of interest in sustainability beyond Kazakhstan's borders, the UN Global Compact has expanded its reach to other Central Asian nations. This led to the formation of a regional advisory committee, tasked with overseeing the program's expansion across the region.
"Central Asia is intricately connected, and businesses and communities learn from one another. That's why we decided to work together," Seijaparova stated. "The advisory committee is an extraordinary blend of professionals committed to sustainable development, composed of CEOs of banks, financial institutions, government representatives, and civil society leaders."
Charging Forward with SDGs through Corporate Initiatives
Khassenova brought attention to the SDG Ambition Accelerator, a six-month educational program initiated in October 2023. The program assists companies in integrating the SDGs into their business strategies, empowering them to become more socially and environmentally responsible.
"As a result, some companies have introduced sustainability reports, while others have begun outlining plans to decrease carbon emissions, promote diversity and inclusivity, and develop sustainable waste management practices. At the same time, we encourage ambitious goal-setting, so we don't anticipate immediate results," Khassenova explained.
The Global Compact has spearheaded two training series under the SDG Ambition Accelerator and led initiatives such as the Business and Human Rights Accelerator and Climate Ambition Accelerator. These projects have engaged over 130 companies and 400 representatives from Kazakhstan, Uzbekistan, and the Kyrgyz Republic, symbolizing a regional shift toward responsible business practices.
Khassenova emphasized the indispensable role of the private sector in driving sustainable development. "As one of the largest employers, the private sector shapes whether products are made sustainably, whether workplaces are safe and ethical, and whether economic growth benefits workers and consumers alike."
Another project's standout feature is the SDG Pioneers competition, which, for the first time in Central Asia, recognized individuals championing sustainability within their companies.
"In July 2024, we awarded the first-ever SDG Pioneers in Central Asia. These individuals usually take on influential roles, like company directors, who can introduce new policies, set ambitious sustainable goals, and develop sustainable strategies. However, they can also be employees who conceive innovative sustainable ideas, such as proposals for increasing energy savings, reducing greenhouse gas emissions, and more efficient use of resources," said Khassenova.
She firmly underlined the pivotal role of the private sector in fostering sustainable development.
[1] Source: associated luxury assets[2] Source: the tune hub[3] Source: kazinform.kz[4] Source: oil and gas 360[5] Source: globalccde.org
Science and technology are instrumental in Kazakhstan's private sector's commitment to sustainability. By embracing Environmental, Social, and Governance (ESG) principles, these companies are integrating cutting-edge technology and innovative scientific solutions into their operations, driving environmental protection and responsible business practices that align with the United Nations Sustainable Development Goals (SDGs).
The UN Global Compact's SDG Ambition Accelerator, for instance, equips participating companies with the necessary knowledge to incorporate sustainability into their business strategies, utilizing technology and scientific data to achieve environmentally friendly outcomes. Furthermore, the competition for SDG Pioneers in Central Asia recognizes individuals who champion sustainability within their organizations, often utilizing technological advancements and innovative scientific approaches to harmonize business profits with eco-friendly practices.
