Tashkent, Uzbekistan (UzDaily.com) — Sustainable Fitch has assigned JSC Almalyk Mining and Metallurgical Complex (AGMK) an ESG Entity Rating of ‘3’ and an entity score of 56.

This reflects the company's sustainable development strategy and good governance and environmental profiles, balanced against the inherent environmental challenges of the mining and metallurgical sector.

The assessment includes the company's eligibility and alignment with taxonomies of reference; contribution to UN Sustainable Development Goals; and integration of ESG considerations into its business, strategy and management.

AGMK is one of Uzbekistan's largest mining and metallurgical companies and a non-ferrous metals producer in Central Asia. Its operations are centred in Uzbekistan, exporting its products to over 17 countries.

AGMK's vertically integrated production process covers geological exploration, mining, ore processing and finished product creation, including copper, silver and gold. These metals are essential across industries and sectors. Despite this, AGMK's mining and metallurgical activities have an inherent negative environmental impact through high energy consumption, GHG emissions, and waste and water usage. Positively, some metals, such as copper, are used in transition and green solutions.

AGMK's environmental profile benefited from robust policies, a lack of significant incidents over the last three years, and comprehensive and material KPIs. However, the lack of Scope 3 emissions disclosure remains a limitation.

AGMK's social profile is positively affected by a low employee turnover rate. The negative drivers are the statistics of serious accidents over the past three years involving its workforce and contractors, and limited gender diversity, reflecting the trend in the sector.

AGMK's governance profile benefits from a clear, independent internal audit function; effective risk and tax management; and a low CEO pay ratio in 2023. Its board has two independent directors, though they represent a minority of members.

Overall, the rating reflects its governance strengths and ongoing efforts to address environmental and social challenges.