FEMALE LEADERSHIP IN KAZAKHSTAN’S ENERGY INDUSTRY
Digitalization and Gender Parity in Energy: The Path to Sustainable Growth and Corporate Resilience in Kazakhstan
Aziza Shuzheyeva, Ph.D. in Economics, Head of the "Digital Transformation" Public Foundation, Chair of the Board of the "Techno Women" NGO
Digital Transformation in the Energy Sector

At this stage of Kazakhstan's development, the energy sector faces challenges that require creative approaches and strategies. Globally, the energy industry is undergoing one of its most significant transformations in the last century. Some experts suggest that traditional energy will become obsolete within 15-20 years, with new energy sources replacing it entirely in 50-60 years.
In this context, digitalization is not merely a trendy term but an opportunity for Kazakhstan's energy companies. Implementing cutting-edge technologies such as the Internet of Things (IoT), artificial intelligence, Big Data, and others can optimize operational processes, enhance reliability, and reduce environmental impact. As a result, the industry's productivity and competitiveness significantly increase.
Digital transformation also opens new horizons in energy management and the development of sustainable solutions, which is critical for meeting the increasing demand for energy and reducing environmental impact.
Thanks to widespread digitalization, Kazakhstan ranked eighth globally (out of 193 countries) in the UN's online services development index last year. Currently, 92% of electronic services are available online. In the UN's 2022 E-Government Development Index, Kazakhstan ranked 28th worldwide and first among CIS countries. In the energy sector, an information system for accounting oil and gas condensate (ISUN) has been put into commercial operation, automating data collection during oil preparation, processing, and transportation stages. The system connects 25 oil-producing organizations, four oil transportation companies, and three oil refineries1.
Key trends include digital transformation and gender equality, which can be significant for sustainable growth and corporate success.
Gender Equality as a Strategic Advantage
As gender equality becomes increasingly relevant, it deeply influences corporate governance and the efficiency of energy companies. Nowadays, many companies are starting to understand that focusing on this issue is socially and strategically important. The full participation of both women and men in a company's operations brings new ideas, diversity, and innovation.
Research indicates that companies actively supporting gender equality exhibit better productivity and financial outcomes. Respect for gender equality becomes a key part of corporate culture and development strategy2.
The experience of many countries in implementing gender parity in sectors used to modernize the market economy (such as Scandinavian countries, South Korea, Japan, the UAE, and others) is also noteworthy.
International political and business communities recognize the gender equality policy as defining in the global agenda. The issue of gender parity is also included in the agenda for sustainable development goals and key development indices, which are effective tools for assessing progress in the world today (indices of human development, gender development, gender inequality, social institutions, and gender issues, gender gap, and others)3.
A comprehensive study on gender equality and its impact on economic transformation and growth was conducted by the global research institute McKinsey. This study suggests that by 2025, the global GDP could increase by $12 trillion through the advancement of gender equality in 96 countries. The presented "full-potential" optimistic scenario proves that if women play the same role in the labor market as men, up to $28 trillion, or 26%, could be added to the global annual GDP by 20254.
Under the promotion of gender equality, McKinsey includes the mass involvement of women in productive employment and the elimination of barriers and discrimination that women face in hiring, career advancement, participation in political and social life, and physical safety and health protection.

If we examine the development scenario proposed by McKinsey for the group of countries in Eastern Europe and Central Asia, which includes Kazakhstan (Fig. 1), the application of gender equality mechanisms in economic policy will lead to a 9% GDP growth under the optimal scenario.
Furthermore, according to the World Bank index, which for the first time was included in the study "Women, Business and the Law - 2019: A Decade of Reform," if women have equal opportunities to realize their potential fully, the world will not only gain in fairness but also overall prosperity5.
Existing evidence and expert opinions are unequivocal; however, the question of applying gender equality as an effective tool for economic transformation in different countries, including Kazakhstan, remains underestimated to this day.
Achieving gender parity in sectors and companies in Kazakhstan is often perceived as part of social policy rather than as a business strategy in the Diversity & Inclusion (D&I) format. Despite a 30-year declared movement towards a market economy, a consensus on the economic contribution of women to sectoral development has yet to be reached among economists, entrepreneurs, or government officials.
Consequently, the McKinsey development scenarios projected for 2025 remain unattainable.
In Kazakhstan's oil and gas and energy sectors, the share of women, according to national statistics and the EBRD/Kazenergy report "The Role of Women in the Energy Sector of Kazakhstan," was 25% in 2020, making their professional contribution to the establishment and development of the industry enterprises where they work all the more valuable6.
In 2021, the average share of women in the energy sector remained significantly lower than that of the male workforce. Specifically, the average share of women in the coal industry was 22%, and in the oil and gas sector it was 18%. At the same time, the share of women employed in the renewable energy sector amounted to 30%, a positive indicator that points to the comparative attractiveness of the renewable energy sector for women compared to traditional energy industries.
The most worrying trend remains that in Kazakhstan, women in the coal mining and oil extraction industries and the field of renewable energy are concentrated in low-skilled and non-core professions.
Gender parity in the decision-making process within Kazakhstan's energy sector remains an elusive target despite the country's gender policy implementation and a wealth of studies indicating a significant economic effect for companies. According to the study "The Value of Diversity: Women on the Boards of Directors in Kazakhstan" conducted by the International Finance Corporation, a correlation between an increase in the number of women on the board of directors and financial performance indicators has been established, which is also confirmed by regression analysis results among companies of various sizes.
The analysis model indicates that for medium-sized companies, a 1% increase in the proportion of women can, all other things being equal, be associated with a 14% increase in ROA and a 25% increase in ROE. A 1% increase in the proportion of women in large companies is associated with a 7% increase in ROA and a 6% increase in ROE. Furthermore, an increase in the number of women at the decision-making level is also associated with the development of human capital, improved company reputation, occupational health and safety, risk management processes, corporate governance practices, and much more7.
Despite progressive corporate governance practices implemented by companies in the oil and gas and other energy sectors, D&I policies and the pursuit of gender parity are not priorities in company strategies. Women remain underrepresented in Kazakhstan's energy sector, especially in executive and technical positions.
In 2020, women comprised 17% of board members and 12% of top executives in the energy sector. Among 12 major companies in the oil and gas sector, women held 11 of the 66 board seats (17%). Furthermore, 4 out of these 12 companies (33%) had boards of directors that were exclusively male. Women held 19% of all executive positions in 2020 (compared to 25% in the workforce).
There is no sectoral gender research for 2023, but analysis of large companies shows that the situation is deteriorating. In the industry, only one company has a gender quota for its leadership – Samruk-Energo JSC, which in 2019 signed a statement supporting the seven principles of women's rights and empowerment developed as part of a partnership between the UN Women structure and the UN Global Compact. As a result, "in 2019, the company improved its approach to addressing gender issues and implementing the principle of equal opportunities in its annual corporate reports, which includes broader use of gender-disaggregated data and more specific statements about commitment to promoting equal opportunities. However, despite the achieved results, there are currently no women on the board of directors of Samruk-Energo JSC, and women's representation on the board is 20%."
This trend does not match the updated Concept of Family and Gender Policy in the Republic of Kazakhstan until 2030 (decree of the President of the Republic of Kazakhstan from 01.04.2022), which reflects the Kazakhstani model of promoting gender equality issues in the economy and society.
In 2022, the following amendments were introduced: to the Corporate Governance Code of the National Welfare Fund Samruk-Kazyna JSC (Government Decree No. 751 of 26.09.2022), as well as to the "Standard Corporate Governance Code in State-Controlled Joint Stock Companies, excluding the National Welfare Fund" (Order of the Ministry of Energy of the Republic of Kazakhstan No. 63 of 8.09.2022), which provide for 30% representation of women in the management bodies of quasi-public sector companies. This work will allow the implementation process of gender quotas in the corporate sectors to cover at least 30% and to include key segments of the quasi-public sector. Consequently, the number of women in leadership positions is expected to rise to 20% by 2025 and 30% by 2030.