Celebrating a year of leading with purpose and pioneering sustainability in finance

Kuwait Times

2 days ago

KUWAIT: In line with its pioneering role and institutional commitment to embedding sustainability across all aspects of its operations, National Bank of Kuwait (NBK) released its ninth annual Sustainability Report for 2024. The report outlines the Bank's most prominent ESG-related achievements and contributions over the past year, reinforcing its dedication to sustainable growth. The report outlines the strategic ESG initiatives undertaken in 2024, highlighting NBK's continued efforts to tackle key sustainability challenges, explore emerging opportunities, and build on the sustainability journey it began in 2016.
It also demonstrates the Bank's progress in embedding climate risk into its enterprise risk management framework. Providing a comprehensive overview of NBK's strategic sustainability roadmap, the report reflects the Bank's ambition to create a lasting positive impact on the communities it serves, while fostering long-term growth and operational resilience. The report is structured around four main ESG pillars—Governance for Resilience, Responsible Banking, Capitalizing on Our Capabilities, and Investing in Our Communities—each encompassing key issues, milestones, and initiatives undertaken in 2024.
Governance for Resilience
The report pointed out that NBK made significant strides in 2024 in strengthening governance for resilience as part of its ESG strategy. It highlighted NBK's role as a pioneer in advancing sustainability, becoming the first financial institution in Kuwait—and one of only 15 in the MENA region to join the Partnership for Carbon Accounting Financials (PCAF). This global initiative provides financial institutions with standardized methodologies to measure and disclose greenhouse gas emissions associated with their portfolios across all asset classes, including lending and investment activities such as listed equities and bonds, corporate loans, private equity, project finance, commercial real estate, mortgages, auto loans, guarantees, and sovereign debt.
The report also noted that in 2024, NBK continued its engagement with the United Nations Global Compact (UNGC), the world's largest corporate sustainability initiative, which it joined in 2023. As part of this alliance, NBK submitted its first progress report in 2024, affirming its commitment to transparency and responsible business practices that support the sustainable development of Kuwait's economy.
Furthermore, it emphasized that 2024 marked the release of NBK's first report aligned with the Task Force on Climate-related Financial Disclosures (TCFD) framework. As part of its continued progress toward a more sustainable future, the report noted that NBK developed and implemented a comprehensive bank-wide Environmental and Social Risk Management (ESRM) framework in 2024. This milestone reflects the Bank's commitment to embedding climate governance at the core of its operations, strengthening its ability to anticipate and manage emerging environmental risks. Additionally, NBK developed an ESG scorecard that supports the assessment and integration of ESG criteria into the credit rating process for both existing and new corporate clients.
Responsible banking
With regard to the Bank's achievements under the second pillar of its ESG strategy—Responsible Banking—the report highlighted that the value of NBK's sustainable assets reached $4.97 billion by the end of 2024, representing nearly 50 percent of its $10 billion target set for 2030. The report also noted a key milestone in 2024: the successful issuance of NBK's first green bonds, valued at $500 million. Issued under the Global Medium-Term Note Program as senior unsecured green bonds with a six-year maturity and a call date after five years, this marked the first issuance of its kind by a Kuwaiti financial institution.
NBK recently published its first Green Bond Allocation and Impact report, highlighting the environmental benefits of the bonds' proceeds. Moreover, the report emphasized that this significant milestone reflects NBK's broader vision to lead the transition toward a low-carbon economy, promote sustainable finance across the region, and channel capital into climate-resilient infrastructure.
It also revealed that in 2024, NBK Group extended sustainable loans totaling $2.52 billion to clients with environmental and/or social impact. The report noted the continued expansion of green product offerings, including electric vehicle loans and low-emission housing loans, alongside ongoing efforts to explore further environmental financing opportunities under the Bank's sustainable financing framework.
The report noted that in 2024, NBK took a significant step toward quantifying financed emissions under Scope 3 - emissions that originate from activities outside the Bank's direct operations but are associated with its value chain, such as supply chains, transportation, and other indirect sources, but most importantly, its financing activity.
This development enhances the Bank's ability to manage the broader climate impact of its financing decisions. According to the report, NBK completed the installation of solar panels across 18 of its local branches in 2024 as part of efforts to make its operations more sustainable and reduce its carbon footprint. The initiative aligns with Kuwait's Vision 2035, with plans to extend coverage to 24 branches by 2025.
It also highlighted NBK's progress in minimizing its environmental footprint and enhancing resource efficiency, noting a 28.30 percent reduction in total greenhouse gas emissions compared to the 2021 baseline—surpassing its interim 2025 emissions reduction target ahead of schedule. Additionally, the report explained that in 2024, the bank successfully reduced its electrical energy consumption by approximately 389,914 kWh, cut water usage by 20.85 percent compared to the previous year, and recycled 86 percent of the total paper used during the year.
This reflects the Bank's ongoing efforts in line with its long-term ambition to reach carbon neutrality by 2060. The report highlighted that in 2024, NBK introduced a sustainable procurement framework designed to promote environmentally and socially responsible sourcing across its supply chain. The initiative integrates ESG considerations into the Bank's procurement policy and includes the rollout of an updated supplier code of conduct that embeds environmental and social standards, requiring all suppliers to sign a declaration affirming their commitment to ESG principles and human rights.
Capitalizing on our capabilities
Covering the third pillar of its ESG strategy—Capitalizing on Our Capabilities—the report stated that NBK advanced its sustainability efforts in 2024 by reinforcing equal opportunity in the workplace. This included finalizing its Diversity, Equity, and Inclusion (DE&I) statement, underscoring the Bank's commitment to fostering an inclusive and equitable work environment.
The report explained that in 2024, the Bank launched several strategic initiatives and specialized programs aimed at supporting and developing women leaders, contributing to a notable increase in the number of women in leadership and supervisory roles across all levels. It noted that women represented 43.2 percent of NBK's workforce by the end of the year, with 27.4 percent holding senior management positions. Additionally, women accounted for 28.8 percent of the Bank's workforce in science, technology, engineering, and mathematics (STEM) fields, out of a total of 347 specialized employees.
The report highlighted that, through its digital transformation strategy, NBK successfully delivered a range of customer-centric digital solutions and large-scale projects in 2024. It noted the launch of over 90 new features and enhancements via the NBK Mobile Banking App, aimed at improving user experience, strengthening security and payment capabilities, and broadening the Bank's suite of innovative digital offerings — all designed to save customers time and effort.
It stated that Weyay Bank, NBK's digital arm, launched impactful ESG initiatives in 2024 aimed at enabling customers to experience a more responsible and innovative digital banking model. It also underscored NBK's continued investment in the professional development of its workforce, highlighting a comprehensive suite of mandatory, leadership, and specialized training programs designed to enhance both personal and professional competencies across all levels of the organization. The report emphasized the Bank's ongoing commitment to empowering young national talent through various initiatives, most notably NBK Academy and NBK Tech Academy.
Touching on NBK's strategy to strengthen women's leadership across the organization, the country, the region, and globally, the report stated that the Bank launched the second edition of the NBK RISE program in 2024. As the first initiative of its kind in Kuwait, the program is designed to support women leaders, empower their advancement, and prepare them to assume top executive roles.
The report also highlighted NBK's ongoing commitment to investing in human capital. In 2024, the Bank signed an exclusive cooperation agreement with Coaches Circle Academy, based in Vancouver, Canada, to enhance the leadership and coaching capabilities of NBK's senior executives. As part of this initiative, a select group of senior employees participated in advanced leadership development programs in collaboration with IE Business School in Madrid, to cultivate and elevate the skills of the broader workforce.
Investing in our communities
The report affirmed that, in line with the fourth pillar of NBK's ESG strategy — Investing in Our Communities — the Bank remained committed in 2024 to delivering exceptional service, safeguarding customer interests, and protecting their rights. It also continued to promote financial inclusion, expand access to banking services, and elevate financial literacy across all segments of society. Furthermore, the report explained that, reinforcing its position as the leading contributor to social responsibility in Kuwait, NBK's total community investments reached KD 30 million in 2024 — a 9 percent increase from 2023. It added that, as part of its continued support for entrepreneurs in Kuwait, the Bank extended loans to SMEs totaling KD 25.04 million last year, reflecting a 23.5 percent year-on-year growth.
The report noted that the Kuwaitization rate at NBK – Kuwait reached 78 percent in 2024, aligning with the requirements set by the Central Bank of Kuwait (CBK). This was achieved through targeted initiatives aimed at attracting and developing local talent. It underscored that NBK's Kuwaitization strategy is designed to broaden the recruitment of national talent and sustain their retention over the long term. It also indicated that, as part of the Bank's ongoing commitment to community development—particularly in the field of education—interest in the Bankee program has continued to grow.
This flagship initiative, aimed at enhancing financial awareness and literacy among school students in Kuwait, saw the participation of 61 schools, 7,230 teachers, and 32,257 students during the 2024–2025 academic year, building on the remarkable success achieved in the previous year. The report stated that, during 2024, NBK maintained its sponsorship of Kuwait Dive Team to support initiatives aimed at preserving Kuwait's coastal and marine ecosystems. It also renewed its partnership with Omniya for waste removal and management, which contributed to a reduction of 462.5 tons in carbon dioxide emissions.
Additionally, the Bank extended its collaboration with the LOYAC Foundation to continue developing programs and events that empower youth, foster entrepreneurship, and promote environmental responsibility. The report highlighted that the Bank continues to actively use its social media channels to educate customers on a wide range of topics. In 2024, NBK issued 2,320 social media posts and 42 press releases to boost customer awareness of banking products and services.
The report also emphasized the Bank's ongoing strong support and participation in CBK's 'Let's Be Aware' campaign, which aims to promote financial literacy across all segments of society. A customer satisfaction rate of 90 percent was highlighted in the 2024 report, underscoring NBK's ongoing efforts to enhance its services and products, introduce innovative solutions, and solidify its standing as a leader in the banking sector.
Agreements & partnerships
The report highlighted NBK's participation in the 2024 Conference of the Parties (COP29) to the United Nations Framework Convention on Climate Change (UNFCCC) held in Baku, Azerbaijan, underscoring the Bank's commitment to supporting the transition to a sustainable, low-carbon economy in alignment with Kuwait's comprehensive sustainability vision and global climate action efforts. It also noted NBK's involvement in the sixteenth session of the Conference of the Parties (COP16) of the United Nations Convention to Combat Desertification (UNCCD) that took place in Riyadh, Saudi Arabia, where global strategies to address desertification and land degradation were discussed.
1. NBK becomes the first bank in Kuwait to join the PCAF initiative to support greenhouse gas emissions reduction
2. First Kuwaiti financial institution to issue green bonds
3. Developed and began implementing an Environmental and Social Risk Management (ESRM) framework
4. Introduced a sustainable procurement strategy and updated its supplier code of conduct
5. Published first report aligned with the Task Force on Climate-related Financial Disclosures (TCFD) framework
6. Launched Diversity, Equity and Inclusion (DE&I) Statement to reinforce equal opportunities in the workplace
7. Measuring financed emissions under Scope 3 leads to better manage the climate impact of its lending portfolio
8. Sustainable assets reached US$4.97 billion, nearly 50% of the Bank's 2030 target
9. Provided US$2.52 billion in sustainable loans in 2024 to clients with positive environmental or social impact
10. Achieved a 28.3% reduction in total GHG emissions compared to the 2021 baseline, subsequently achieving its 2025 interim emissions reduction target
11. Achieved 389,914 kWh in electricity savings and lowered water consumption by 20.85% year-on-year
12. Recycled 86% of total paper consumed in 2024
13. Installed solar panels in 18 branches across Kuwait during the year, with more installations planned in the future.
14. Maintains a national workforce with 78% Kuwaiti employees
15. Women hold 27.4% of senior management roles at the bank
16. Employs 347 STEM professionals, 28.8% of whom are women
17. Contributed KD 30 million in community investments during 2024, reflecting 9% year-on-year growth
18. Engaged with 61 Schools, +32,000 students and +7,200 teachers as part of its Bankee financial literacy program