6 days ago
Mnakh launches first sustainability practices index for Kuwait market
Sustainability index reveals performance of listed companies
KUWAIT: Mnakh Research and Studies Company has launched Kuwait's first index to measure sustainability practices in the local market, marking a significant step in evaluating the performance of listed companies on Boursa Kuwait based on environmental, social and governance (ESG) standards. The index serves as a launchpad to promote sustainable practices and align with global trends in responsible business. In a press release on Tuesday, Mnakh stated that this sustainability index aligns with the global shift towards a greener, more inclusive economy, and supports the goals of the New Kuwait 2035 vision. Sustainability, it added, represents a comprehensive vision for companies as they design and implement strategic plans.
Investment opportunities
The company emphasized that international markets now view sustainability as a driver of innovation and competitiveness, shifting from being merely a moral obligation to becoming a source of investment opportunities. Global best practices, including transparent reporting based on ESG standards, are now integral to investor decision-making. The Capital Markets Authority has required companies listed in the Premier Market to disclose annual sustainability reports, promoting fairness, competitiveness and transparency. These reports will be mandatory for the 2025 fiscal year, starting from 2026.
Many Kuwaiti companies have already integrated sustainability into their investment decisions and operations, adopting initiatives to improve resource efficiency, promote social justice, address climate change, reduce greenhouse gas emissions and establish responsible business standards. Market demand for sustainability continues to grow in parallel with increasing awareness among investors and consumers. Mnakh noted that the sustainability index utilizes artificial intelligence to analyze corporate reports, offering accurate and transparent assessments of ESG performance. The index is based on a structured methodology using international standards and specific weighting for each sector according to its unique challenges and risks. Companies are rated across 12 categories, from AAA+ to D.
2023 index results
According to Mnakh, the 2023 results show that most listed Kuwaiti companies meet the basic sustainability requirements. In the banking sector, National Bank of Kuwait topped the list with a score of 79.60 points (A+). In telecommunications, Zain led with 78.90 points (A+), while Boursa Kuwait ranked first in financial services with 81.90 points (AA). In real estate, Mabanee scored highest with 77.7 points (A+), while Agility led the industrial sector with 83.25 points (AA) — the highest score across all companies in Kuwait. In consumer goods, Jazeera Airways topped the sector with 72.63 points (A).
Across ESG pillars, Zain ranked highest in environmental performance with 87.5 points, reflecting a strong commitment to sustainable environmental practices. In the social pillar, NBK, Agility and Boursa Kuwait all shared the top spot with 83 points, highlighting their robust social programs and attention to human capital and community engagement. Kuwait Finance House led the governance pillar with 84 points, indicating strong governance systems and corporate transparency.
These results underscore Kuwaiti companies' growing ability to embed sustainability principles into their operations. Their rankings in ESG categories demonstrate that compliance with these standards has become a fundamental element of growth and competitiveness strategies. Mnakh's Sustainability Index is more than just an assessment tool — it acts as a catalyst for positive competition and a driver toward a sustainable economy. It offers a unified, data-driven framework for evaluating listed companies, moving beyond numerical rankings to foster a responsible competitive culture. The index encourages continuous improvement and adoption of sustainable practices in environment, society and governance.
