Board activities during 2024

In 2024, the Board of Directors held 26 meetings and reviewed 283 matters. In 2024, the Board of Directors placed particular focus on ensuring financial stability, overseeing investment project management and sustainability issues, internal audit and risk management, developing management KPIs, as well as safety and well‑being of employees.

Breakdown by committee:

• Nomination and Remuneration Committee (NRC): 18 meetings, 112 matters
• Strategy and Portfolio Management Committee (SPMC): 10 meetings, 129 matters
• Health, Safety, Environment and Sustainable Development Committee (HSE&SD): 10 meetings, 55 matters
• Audit Committee (AC): 16 meetings, 179 matters

Strategic session in 2024

As part of the scheduled session held on 12 July 2024, the Board of Directors reviewed relevance of the KMG Development Strategy for 2022–2031, analysis of external factors and the status of KMG’s strategy with respect to major oil and gas assets, as well as innovations and production enhancement technologies.

Board of Directors’ meeting on sustainability

On 13 November 2024, the Board of Directors held its annual meeting on sustainable development and discussed the following important matters:

• sustainable development framework of KMG;
• market research of ESG rating agencies; S&P requirements and criteria;
• progress against the Low‑Carbon Development Programme in 2023;
• approval of the 2060 Low‑Carbon Development Programme.

Follow‑up on KMG’s key matters

To oversee the implementation of KMG’s strategic initiatives and ensure timely corrective actions while keeping abreast of any critical issues that arise, the Board of Directors regularly considered the following during 2024:

• reports by the Chairman of KMG’s Management Board on key changes in KMG’s operations;
• information on KMG’s HSE activities;
• updates on KMG’s interim financial and operating results;
• reports on interested‑party transactions entered into by resolution of KMG’s Management Board;
• progress on the implementation of KMG’s strategy, KPIs achievement, and investment projects;
• follow‑up report on KMG’s consolidated Development Plan;
• reports by Board committee chairs;
• follow‑up reports on resolutions of the Board of Directors;
• performance reports submitted by units reporting to the Board of Directors.

Taking into account that KMG strives to adhere to best practices in corporate governance and recognises high corporate governance standards and transparency as key drivers of investment appeal and operational efficiency, boosting confidence among potential investors, counterparties, and other stakeholders, mitigating the risk of inefficient use of corporate resources and increasing KMG’s market value and wealth, the Board of Directors maintained vigilant oversight over corporate governance practices throughout 2024.

In 2024, the Board of Directors approved the Corporate Governance Improvement Plan for KMG in 2024–2025, with progress against it reviewed by the Board of Directors on a quarterly basis.

According to the Company’s Charter, the Board of Directors is a governing body accountable to the General Meeting of Shareholders, responsible for the overall governance of the Company’s activities and oversight of the activities of the collective executive body, namely, the Management Board. Thus, through regular meetings and a clearly established procedure for interaction between the Board of Directors and the Management Board, the Company ensures that members of the Board of Directors are aligned with and promptly informed of the strategic vision of major shareholders.

Thus, the Board of Directors was actively involved in the Company’s activities, including through prompt decision‑making on matters essential for the Company’s operations, while also providing KMG’s management with directives and recommendations aimed at enhancing the efficiency of KMG’s processes and projects.