DEVELOPMENT OF ESG-TRANSPARENCY IN THE FINANCIAL MARKET OF KAZAKHSTAN

Abstract

The article analyzes the development of ESG transparency in the financial market of Kazakhstan. During the research, the structure of the Kazakh ESG finance market was determined. There is some evidence that ESG financing is actively developing in Kazakhstan. The main participants of Kazakhstan's ESG financing market are government agencies, banks, stock exchanges, carbon exchanges, rating agencies, banking and business associations. Herewith, the rating of companies providing free access to ESG data was analyzed. Features of ESG in the financial market of Kazakhstan were identified. Companies providing free access to their reports were grouped as large national holdings and initiative companies. The analysis of the rating revealed that environmental issues are well disclosed by companies in the non-financial sector. It is worth noting that the leaders of ESG in Kazakhstan are large oil and gas companies. At the same time, problems of ESG transparency of the financial market were found, such as passive disclosure of ESG information, doubts about the reliability of the data provided. We have obtained accurate results proving that the ESG transparency of the financial market in Kazakhstan is not sufficiently developed. Kazakhstani businesses are recommended to apply ESG transparency in their corporate reporting, implement ESG principles in the company. The survey suggest that state should focus on stimulating the use of ESG in small and medium-sized businesses, since small and medium-sized businesses are the driver of the economy.