NBK achieves top-tier ESG ratings across MENA region
KUWAIT: In recognition of its leadership in advancing sustainability and corporate responsibility across the MENA region, National Bank of Kuwait (NBK) has earned high distinctions from leading global ESG rating agencies, underscoring the Bank's unwavering commitment to environmental responsibility, social impact, and robust governance.
In its latest assessment, Morningstar Sustainalytics improved NBK's ESG Risk Rating from 27.4 (medium risk) to an impressive 19.4 (low risk), reflecting the Bank's enhanced ability to manage material ESG risks. Concurrently, MSCI upgraded NBK's ESG rating from 'BBB' to 'A'—a notable leap that places the Bank firmly among the top five regional banks in ESG ratings.
ESG rating agencies, such as Morningstar Sustainalytics and MSCI, play a critical role in evaluating how institutions manage sustainability-related risks and opportunities. These agencies assess companies across a range of criteria—including environmental impact, social responsibility, and corporate governance—to provide stakeholders and investors with transparent, data-driven insights into organizational performance. High ESG ratings not only promote accountability but also guide capital allocation and investment decisions, reflecting how well highly rated companies are positioned for long-term resilience and responsible growth.
Commenting on NBK's achievement, Amir Hanna, Group Chief Communications Officer at NBK, stated: 'NBK's recognition through these prestigious ratings underscores its growing focus on championing sustainable finance and reinforcing sustainability risk management across the region. It also serves as a global testament to its sustained success. The Bank continues to make significant strides in integrating ESG principles into its corporate culture and operational framework, firmly establishing sustainability as a foundational pillar of its strategic agenda.
Hanna highlighted that these ratings reflect NBK's continued momentum in implementing its comprehensive ESG strategy, which is anchored in four strategic pillars: Governance for Resilience, Responsible Banking, Capitalizing on our Capabilities, and Investing in our Communities. These pillars serve as a roadmap for integrating sustainability across the Bank's operations and delivering long-term value to shareholders, clients, employees, stakeholders, and the broader society.
He further emphasized that NBK's growing commitment to sustainable finance remains a cornerstone of its progress in ESG governance. He also noted that the Bank's vision for sustainability extends well beyond its internal ecosystem, reflecting a steadfast commitment to community development. Across the markets in which it operates, NBK continues to drive meaningful impact, particularly through its focus on education, healthcare, youth empowerment, and expanding access for all segments of society to benefit from its initiatives.
Green bonds
NBK's landmark issuance of the first Green Bonds by a Kuwaiti institution in 2024, valued at $500 million, stands as a clear testament to the strong confidence investors place in the Bank, as well as the alignment of its sustainability strategy with international standards for transparency and accountability.
Through its Green Bond Allocation and Impact Report, NBK provided clear and credible insights into the deployment of proceeds, which were directed toward initiatives such as renewable energy, green buildings, and clean transportation—delivering tangible environmental outcomes including lower carbon emissions and enhanced energy efficiency.
Measuring the bank's carbon footprint
In addition to financing sustainable projects, NBK has aligned its operations with key international climate frameworks. It became the first bank in Kuwait to sign the Partnership for Carbon Accounting Financials (PCAF), a major step in measuring and disclosing the carbon footprint of its lending and investment portfolios. The Bank also continues to implement the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), embedding climate-related considerations into its governance structures, risk management, and strategic decision-making and has recently published its first TCFD report. In terms of NBK's environmental footprint, a target was set to reduce 25 percent of the Bank's operational emissions by 2025. As of 2024, NBK exceeded this target with a 28.3 percent reduction in operational emissions.
A comprehensive framework
NBK's commitment to sustainability is further reinforced by the implementation of a comprehensive Environmental and Social Risk Management (ESRM) framework, which integrates ESG considerations into to the Bank's risk management practices. This framework plays a critical role in identifying and mitigating environmental and social risks not only in credit assessments but also in project financing, investment decisions, and client engagement. By embedding ESG principles into its risk management and governance processes, NBK ensures that its activities consistently align with sustainable development objectives and uphold the highest standards of responsible banking.
Equity & inclusion
On the social and governance fronts, NBK has made significant strides in fostering an inclusive and equitable corporate culture. Through the publication of its Diversity, Equity & Inclusion (DE&I) Statement, NBK reaffirmed its pledge to build a diverse workforce and promote inclusive leadership. NBK continues to lead in championing women's empowerment through targeted leadership programs, most notably NBK RISE, a dedicated initiative designed to support the advancement of women in leadership roles. Moreover, the Bank continues to reinforce its commitment through mentorship opportunities, and inclusive workplace polices, solidifying its position as a regional model for the best-in-class organizational practices.
By embedding ESG principles into the heart of its corporate strategy, NBK continues to enhance its resilience, elevate risk management, and unlock new opportunities for sustainable growth. The Bank's progress reflects not just adherence to global standards, but a proactive drive to lead the financial sector's transition toward a more sustainable and inclusive future.
Looking ahead, NBK remains committed to advancing its ESG performance through innovation, transparency, and stakeholder engagement. It will continue to invest in sustainable solutions, adopt evolving international frameworks, and champion environmental and social progress across the region. With strong governance foundations, measurable impact, and a forward-looking approach, NBK is not only setting new benchmarks in sustainable finance but also shaping the regional ESG landscape for generations to come.
•NBK's sustainability vision extends beyond its internal ecosystem to encompass the broader communities across the markets it serves
•The latest ESG ratings underscore the Bank's expanding regional influence in advancing sustainable finance and reinforcing sustainability risk management practices
•These recognitions serve as a global endorsement of NBK's significant strides in embedding ESG principles within its corporate culture and day-to-day operations
•MSCI upgraded the Bank's rating from 'BBB' to 'A'
•Morningstar Sustainalytics revised its risk assessment of NBK from 'Medium' to 'Low Risk'
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