The protection of biodiversity is one of the important tasks of the Company, which is paid attention to at every stage, from planning and construction to the operation of railway facilities.
Environmental impact assessment is mandatory for any type of economic or other activity that may have a direct or indirect impact on the environment and public health. Effective tools, including social and environmental risk analysis, are used to analyze the risks of project implementation.
The results of the environmental impact assessment are taken into account, and the option that causes the least harm to the environment and human health is selected.
Identification and assessment of project risks are carried out on an ongoing basis at all stages of project implementation. The impact on atmospheric air, surface and groundwater, landscapes, land resources and soil cover, biodiversity and other factors is assessed.
Special attention is paid to the preservation of the natural unchanging landscapes in the area, the impact on the geographical distribution of species and groups of animals, as well as their numbers. All types of vegetation cover of steppe and forest-steppe zones, all types of animals (mammals,
insectivores, hares, rodents, predatory, artiodactyls and others) living in this area and their migrations are studied.
Without a qualitative and quantitative assessment of the environmental impact and without a state environmental assessment, access to the project of the planned activity is not carried out.
NC KTZ JSC is committed to achieving a net positive impact (NPI) on biodiversity by 2026 year. On the way to this target, the Company applies the following commitments, set out in the Environmental Management System Manual (Revision 3.0, approved by the Management Board on 20 May 2026):
No net loss: for all new railway construction projects, the Company aims to achieve no net loss of biodiversity through consistent application of the mitigation hierarchy (avoid → minimise → restore → offset);
Annual target: "zero negative impact on biodiversity" and restoration of natural components is set annually in the Company's Goals and Indicators in the field of occupational health and safety and environmental protection (2026 – item 12);
Priority areas: wildlife migration corridors crossing the railway network are defined as priority areas; in 2025, 29 corridors (80 km) were identified in the Ulytau region and are to be kept permanently free of fencing to allow seasonal saiga migration, with ongoing monitoring;
Restoration: tree planting and restoration of vegetation cover on the Company's territories (more than 180 thousand seedlings planted in 2025);
Sites of global or national importance: the Company and its value chain avoid operating near protected areas and other sites of global or national importance for biodiversity.
These commitments apply to NC KTZ JSC, its subsidiaries, suppliers and contractors, as well as business partners, including joint ventures.
Progress towards these targets is disclosed annually in the Integrated Annual Report.
The assessment of biodiversity risks is carried out as part of the Environmental Impact Assessment of the planned activity (hereinafter referred to as the EIA).
EIA is a process in which the potential effects of economic and other activities on the environment and human health are analyzed. Special attention is paid to biodiversity.
During this process, measures are being developed to prevent negative consequences such as destruction, degradation, damage and depletion of natural ecosystems and natural resources. These measures are also aimed at improving the environment, taking into account environmental standards and legislation of the Republic of Kazakhstan.
The EIA process includes the following main steps:
Stage 1: Assessment of the territory (review of the state of the environment), carried out in order to determine the optimal location of the object.
Stage 2: Preliminary environmental impact assessment accompanying the investment justification (feasibility studies of projects).
Stage 3: Impact assessment, carried out in order to conduct a complete and comprehensive analysis of the potential effects of the project or further economic and other activities. At this stage, alternative options are being considered and an environmental management plan (program) is being developed.
Stage 4: The section "Environmental protection" as part of the working draft, which includes technical solutions to prevent negative impacts on the environment, including biodiversity.
Stage 5: Post-project analysis, carried out one year after the start of economic and other activities, in order to confirm the safety of the facility for the environment and adjust nature protection measures.
These stages together provide a systematic and integrated approach to environmental impact assessment and management, taking into account the importance of biodiversity conservation in the Republic of Kazakhstan.
When conducting an environmental impact assessment, attention is paid to the analysis of the impact and the location of the source on the following objects is taken into account, including their relationship and interaction:
The results of the risk assessment and the measures taken to reduce them are taken into account in the draft EIA.
Environmental impact assessment is carried out in strict accordance with the instructional and methodological documents (Methodological guidelines for assessing the impact of economic activity on the environment) approved by the authorized body for environmental protection.
Thus, the assessment of the impact of planned economic activities on bioresources (soil, vegetation, wildlife) within the framework of an environmental impact assessment (EIA) is carried out in accordance with the Methodological Recommendations for conducting an Environmental Impact Assessment (EIA) of planned economic activities on
Bioresources (soil, vegetation, wildlife) (Appendix 24 to the Order of the Minister of Environmental Protection dated November 29, 2010 No. 298).
The methodology is intended for use by developers of environmental impact assessment in order to comply with uniform methodological requirements, ensure that potential impacts on ecosystems are fully taken into account and measures to protect vegetation are implemented.
The assessment process uses a location-based approach, which allows taking into account the specific conditions and characteristics of the regions where the project is planned to be implemented.
In accordance with the methodology, the requirements for assessing the current state of vegetation and wildlife in the area of planned economic activity have been established and should cover:
background" sites conditionally selected as similar anthropogenic undisturbed territories.
The authorized body in the field of environmental protection, within its competence, monitors compliance with the requirements of instructional and methodological documents on Environmental Impact Assessment.
At the same time, in the process of carrying out economic activities, risk assessment, including biodiversity risks, is carried out in accordance with the requirements of the Standard for Hazard Identification and Environmental Aspects, Risk Assessment and Management in JSC NC KTZ (approved by Order No. 614-FZ dated 09/01/2023).
The input data for the identification of environmental aspects are :
Thus, the scope of the biodiversity risk assessment includes an analysis of the impacts on biodiversity arising from our own operations and in the territories adjacent to our facilities where we operate.The results of the identification of risks and significant environmental aspects are recorded in the Registers of significant risks and significant aspects according to the approved form and are included in the corporate risk management system of the Company.
When identifying significant risks and significant environmental aspects, the structural divisions of the Company and its subsidiaries develop a set of risk management measures. These measures are aimed at transferring risks to a lower category or eliminating them in order to ensure safety and environmental sustainability.
The developed measures are implemented in the production activity plans of the divisions, their development is carried out in accordance with local acts and regulatory technical documents approved by the Company.
Dependencies on nature. The risk assessment takes into account the Company's dependence on natural resources, primarily water and land resources (right-of-way, water supply of stations and depots), and the ecosystem services they provide.
Identified biodiversity risks. Within the EIA for the construction of the Moiynty – Kyzylzhar railway line, a Biodiversity Management Plan was developed, identifying the main risks during construction and operation and places of highest risk (habitats of rare plant species, nesting sites of birds of prey, saiga migration corridors), as well as mitigation measures. On operating lines, the main risk is habitat fragmentation and animal mortality: in 2025, jointly with the territorial forestry and wildlife inspectorate, Okhotzooprom and the Kazakhstan Association for Biodiversity Conservation, 29 potential migration
corridors (80 km) were identified on the Zhezkazgan – Koskol and Zhezkazgan – Kyzylzhar sections and recommended to be kept free of fencing; monitoring continues.
Assessment of operational sites
In accordance with Article 12 of the Environmental Code of the Republic of Kazakhstan, all operational sites of NC KTZ JSC and its subsidiaries are assessed and categorised by the authorised state bodies according to the level and risk of their negative impact on the environment, including impacts on
biodiversity. In 2025, 696 operational sites with a total area of 21000 ha were assessed (100% of sites):
Category I (significant negative impact) – 0;
Category II – 54 (7.8%);
Category III – 243 (34.9%);
Category IV – 399 (57.3%).
There are no concentration zones of rare species or species listed in the Red Book of the Republic of Kazakhstan within the existing railway infrastructure areas. None of the assessed sites has a significant impact on biodiversity or is located within 2 km of protected natural areas or other areas of global or national biodiversity importance. New construction projects undergo an Environmental Impact Assessment with a biodiversity assessment; where a project crosses areas of biodiversity importance (e.g. saiga migration corridors on the Moiynty – Kyzylzhar line), a Biodiversity Management Plan is developed.
Upstream (supply chain). Biodiversity risks in the supply chain are considered through the Supplier Code (items 8.7–8.8): suppliers must prevent and minimise impacts on ecosystems, avoid operating near areas containing biodiversity and carry out land reclamation when developing mineral deposits.
Compliance is verified through environmental audits of suppliers (333 audits in 2025) and the Company's right of access to suppliers' facilities. Priority supply categories with potential biodiversity impacts include ballast and crushed stone, timber sleepers and construction contracting.