The railway industry generates various types of waste, including waste from repair and maintenance of rolling stock, tracks, stations, and waste generated during operation. Waste may contain hazardous substances such as metals, plastics, and other materials that require proper disposal to prevent negative impacts on the environment.

Therefore, effective waste management is an important element of the Company’s sustainable development.

The company takes a systematic approach to waste management issues, implementing a set of measures aimed at minimizing their formation and increasing the share of recycling and disposal. Responsibility for waste management is assigned to waste generators - from the moment of their formation until their transfer to specialized organizations licensed to remove or restore them.

Activities are carried out in strict accordance with the legislation of the Republic of Kazakhstan, as well as the internal Waste Management Rules in JSC NC KTZ and its subsidiaries.

In order to control and improve the waste management system, an internal audit is conducted annually across the entire Company group in accordance with the order of June 22, 2023 No. 431-TsZ. During the audits, waste storage conditions, passports, disposal contracts, as well as compliance with regulatory requirements are analyzed. Audits help identify bottlenecks and find opportunities to improve waste management efficiency. According to the results of the audit conducted in 2025, no violations were identified.

In order to reduce waste volumes, branches and subsidiaries develop and implement Programs and Plans for environmental protection measures, including specific measures to reduce waste generation, in particular, separate collection of production waste, installation of reverse vending machines, use of deposit methods for containers, packaging of purchased products, etc.

In addition, the Company is also working on the implementation of innovations, for example, as part of the preparation of the Research and Development (R&D) Plan for 2026, the inclusion of a project to develop new methods for cleaning and restoring oil-contaminated soils along railways is being considered, which will not only reduce the harmful impact on the environment, but also minimize the amount of waste generated.

The company also sets specific quantitative targets for waste reduction on an annual basis. By 2025, a specific quantitative target has been set: a 2% reduction in the volume of waste subject to recycling and reuse compared to the 2024 level (see Goals and Indicators in the Field of Occupational Health and Safety, Ecology ).

To achieve these goals, special attention is paid to staff training and the formation of an environmental culture. Thus, in 2025, a training was organized for employees of branches and subsidiaries with the participation of the Eco-Ambassador of the Ministry of Ecology, Geology and Natural Resources of the Republic of Kazakhstan. The participants were presented with the key principles of the 5R-Zero Waste concept and given practical recommendations on waste sorting and leading an environmentally responsible lifestyle.

Thus, the company implements an integrated approach to waste management, combining audit, planning, innovation, goal setting and staff training, which contributes to sustainable environmental development.

Waste volumes in the period from 2020 to 2024, tons

In 2024, JSC NC KTZ generated 57932 tons of waste, which is 1.1% less than the level of 2023. At the same time, according to the Goals and indicators of JSC NC KTZ approved by the Chief Engineer of JSC NC KTZ in the field of occupational safety and health, ecology for 2024, a goal was set to reduce the amount of waste generated to be disposed of and reused by 2% to the level of 2023 ( Goals and Indicators in the Field of Occupational Health and Safety, Ecology ).

In order to reduce waste exported to the landfill and reduce the environmental impact, the Company is working on separate waste collection with further disposal and delivery to interested organizations. The Company enters into contracts with public utilities and waste disposal and disposal service providers. In 2024, 102246 kg of waste were transferred to third-party organizations on a reimbursable basis, including:

Wastes transferred to the third-party entities in 2023

• Used battery cells - 36255 kg
• Scrap paper - 34834 kg
• Plastics- 12373 kg
• Used tyres - 11821 kg
• Used office appliances - 5426 kg
• Glass - 1537 kg