Latest news with #PCAF
Forbes
2 days ago
- Business
- Forbes
Green Fintech's Data Dividend: How APIs, ESG-Linked Trade And 'Kilowatt Tokens' Turn Sustainability Data Into Cash Flow
Money used to move after a tree was planted or a turbine spun. Now the proof that a tonne was avoided, a supplier hit its target, or a kilowatt came from wind is itself a monetisable asset. Over the past twelve months three fast-maturing tools including carbon-accounting APIs, sustainability-linked trade-finance rails and blockchain energy tokens, have shown just how quickly environmental data can translate into basis-points and working-capital savings. Open your Tide UK business app and every purchase carries a CO₂ estimate thanks to a plug-and-play feed from London start-up Connect Earth; the same API went live this February in Colombia Fintech's sandbox to seed 'transactional carbon accounting' across Latin America (Connect Earth blog, Feb 2025). Enterprise platforms are racing the same way: in May 2025 Watershed open-sourced its emissions-factor library, betting free data would funnel more corporates into its paid analytics stack (Watershed release). Regulators are effectively underwriting the market. In April 2025, Canada's securities watchdogs paused mandatory Scope-3 filings until 'credible primary datasets' are widely available, pushing issuers toward off-the-shelf carbon feeds rather than spreadsheets (Canadian Securities Administrators notice). Meanwhile the Partnership for Carbon Accounting Financials (PCAF) has started accrediting SaaS providers, Watershed in the US, Persefoni in Europe, Pantas in Southeast Asia, so banks can drop API numbers straight into financed-emissions ledgers (PCAF partners list, 2025). Data is already shaving basis-points off container finance. In August 2024 Santander Brazil launched a R$50 million (≈ US$8.3 million) sustainability-linked supply-chain line for Vestas: suppliers uploading audited emissions and earning at least a 'bronze' EcoVadis rating pay up to 70 bp less for early-payment financing (Santander CIB post). Global Finance judged it 2025's 'Best Sustainable Supply-Chain Finance Program' (Global Finance Awards 2025). Fintechs are scaling the model. TradeSun's CoriolisESG now pipes satellite-verified deforestation and factory-level CO₂ data into bank trade-origination screens, auto-scoring shipments before a letter-of-credit is approved (Fintech Times, Nov 2024). And in October 2024 the European Investment Bank earmarked €5 billion to purchase short-term trade assets that meet verifiable green criteria (EIB press release). Treasurers have noticed. An auto-parts supplier in Thailand that trims emissions intensity by 10% under Vestas's programme can cut 50–70 bp off funding costs, sometimes the difference between accepting or rejecting a purchase order. Carbon data, in effect, is becoming collateral. While banks tokenise emissions, energy markets are tokenising the electrons themselves. In January 2025 Australia's Power Ledger began national roll-out of its peer-to-peer rooftop-solar marketplace after pilots delivered household tariffs 43% below retail rates and community savings of 6–12% a year (Power Ledger case study). Southern Europe is seeing similar moves: in March 2025 Spain's utility Acciona and partner Galp expanded GreenH2chain®, a blockchain registry that tags every megawatt of green hydrogen with a provenance certificate accepted by Iberian grid operators (Acciona news). Analysts at Global Market Insights reckon the blockchain-in-power vertical hit US $2.1 billion in 2024 and is compounding at 41% a year through 2034 as kilowatt tokens, hourly renewable-energy certificates and on-chain heat-pump credits go mainstream (GMI report, July 2024). Corporates are already arbitraging: an Asian data-centre operator buys hourly matched solar tokens to prove Scope 2 compliance under Europe's CSRD, then retires them against local tariffs when prices spike. Two macro forces explain the land-grab. First, disclosure mandates: Europe's CSRD and the new ISSB baseline will force more than 50,000 companies to publish audited Scope 1-3 data by 2027, turning API pipelines into audit-cost insurance (European Commission CSRD overview, June 2024). Second, capital costs: Moody's expects sustainable-bond issuance to hold the US $1 trillion line in 2025 even as conventional high-yield shrinks, keeping cheap money fenced behind verifiable ESG metrics (Moody's ESG Outlook 2025). The payoff is real. Santander reports lower risk weights on ESG-verified trade paper, freeing capital; Vestas says suppliers in Brazil shaved 80 bp off financing costs; Power Ledger users earn 18–37% more for excess solar than under feed-in tariffs. Where data drives margin, bad data drives fines. In January 2025 the UK's Financial Conduct Authority hit a fund manager with a £5.6 million penalty for 'unsubstantiated sustainable-investment claims,' the regulator's largest greenwashing fine to date (FCA enforcement notice). Energy tokens face other pitfalls: certificate double-spending, grid congestion when real-time settlement outpaces physical delivery, and speculative swings that could mimic the 2022 crypto rout if oversight lags. McKinsey pegs global cross-border payment friction at roughly US $150 billion a year. Strip out even a slice by embedding tamper-proof sustainability data and treasurers unlock an entirely new spread. Carbon APIs, ESG-scored invoices and kilowatt tokens prove environmental metadata is no longer a cost centre; it is tradable collateral and pricing power. The winners will be the fintechs and banks that wire sensor feeds straight into ledgers. Everyone else will be stuck paying carbon-era information rent.
Zawya
3 days ago
- Business
- Zawya
NBK issues 2024 sustainability report
RELATED TOPICS SUSTAINABILITY RELATED COMPANIES Ctrl Bk Kuwait Nbk Group Omniya NBK becomes the first bank in Kuwait to join the PCAF initiative to support greenhouse gas emissions reduction First Kuwaiti financial institution to issue green bonds Developed and began implementing an Environmental and Social Risk Management (ESRM) framework Introduced a sustainable procurement strategy and updated its supplier code of conduct Published first report aligned with the Task Force on Climate-related Financial Disclosures (TCFD) framework Launched Diversity, Equity and Inclusion (DE&I) Statement to reinforce equal opportunities in the workplace Measuring financed emissions under Scope 3 leads to better manage the climate impact of its lending portfolio Sustainable assets reached US$4.97 billion, nearly 50% of the Bank's 2030 target Provided US$2.52 billion in sustainable loans in 2024 to clients with positive environmental or social impact Achieved a 28.3% reduction in total GHG emissions compared to the 2021 baseline, subsequently achieving its 2025 interim emissions reduction target Achieved 389,914 kWh in electricity savings and lowered water consumption by 20.85% year-on-year Recycled 86% of total paper consumed in 2024 Installed solar panels in 18 branches across Kuwait during the year, with more installations planned in the future. Maintains a national workforce with 78% Kuwaiti employees Women hold 27.4% of senior management roles at the bank Employs 347 STEM professionals, 28.8% of whom are women Contributed KD 30 million in community investments during 2024, reflecting 9% year-on-year growth Engaged with 61 Schools, +32,000 students and +7,200 teachers as part of its Bankee financial literacy program 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 US$ 4.97 billion by the end of 2024, representing nearly 50% of its US$ 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 US$ 500 million. Issued under the Global Medium-Term Note Programme 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 US$ 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% 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 kilowatt-hours, cut water usage by 20.85% compared to the previous year, and recycled 86% 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% of NBK's workforce by the end of the year, with 27.4% holding senior management positions. Additionally, women accounted for 28.8% 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% 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% year-on-year growth. The report noted that the Kuwaitization rate at NBK – Kuwait reached 78% 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% 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.
The Print
30-04-2025
- Business
- The Print
Indian banks largely unprepared for climate-related financial risks, warns report
The 'Unprepared' report by Climate Risk Horizons (CRH) assessed 35 banks largest scheduled commercial banks in India by market capitalisation on the Bombay Stock Exchange (BSE), with a combined market cap of Rs 4,582,292 crore as on March 2024. New Delhi [India], April 30 (ANI): With climate change posing increasing risks to financial stability, Indian banks remain largely unprepared to fully integrate climate-related risks into their operations, said a report by Climate Risk Horizons. Out of these 35 assessed banks, 11 are public sector banks, 18 are from the private sector, and six are small finance banks. The report says that only a handful have made meaningful progress in areas like emissions disclosure, climate risk management and coal divestment. As per the report, only seven banks disclose all scope 1, 2 and 3 emissions, leaving major gaps in transparency and accountability. 'This report highlights that the Indian banking sector faces significant challenges in aligning with global climate goals,' the report added. 'Despite some progress in adopting frameworks like Partnership for Carbon Accounting Financials (PCAF) and Sustainable Development Goals (SDGs), the majority of Indian banks lack comprehensive climate strategies, adequate green finance portfolios, and integration of climate risks in their credit and lending decisions,' the report added. On the positive side, climate scenario analysis and climate risk management is gaining traction, the report said, adding that there is an urgent need for capacity building and clearer regulatory guidelines to support a smooth transition towards sustainable banking practices. 'This report emphasises that the Reserve Bank of India (RBI), government, and industry stakeholders must take decisive action to accelerate the shift towards green finance,' the report added. Going further, the report added that many Indian banks are discussing sustainable finance initiatives, but the lack of comprehensive activity lists hinders independent assessments. Most banks do not disclose values of their sustainable financing, as per the report. According to the report, five banks have set net zero targets but lack specific reduction pathways. This makes it difficult to assess progress and credibility, the report added. The report adds that while the number of banks disclosing third party verification for their scope emissions has increased but significant improvements are still needed. (ANI) This report is auto-generated from ANI news service. ThePrint holds no responsibility for its content.
Time of India
30-04-2025
- Business
- Time of India
Indian banks largely unprepared for climate-related financial risks, warns report
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel With climate change posing increasing risks to financial stability, Indian banks remain largely unprepared to fully integrate climate-related risks into their operations, said a report by Climate Risk "Unprepared" report by Climate Risk Horizons (CRH) assessed 35 banks largest scheduled commercial banks in India by market capitalisation on the Bombay Stock Exchange (BSE), with a combined market cap of Rs 4,582,292 crore as on March of these 35 assessed banks, 11 are public sector banks, 18 are from the private sector, and six are small finance report says that only a handful have made meaningful progress in areas like emissions disclosure, climate risk management and coal per the report, only seven banks disclose all scope 1, 2 and 3 emissions, leaving major gaps in transparency and accountability."This report highlights that the Indian banking sector faces significant challenges in aligning with global climate goals," the report added."Despite some progress in adopting frameworks like Partnership for Carbon Accounting Financials (PCAF) and Sustainable Development Goals (SDGs), the majority of Indian banks lack comprehensive climate strategies, adequate green finance portfolios , and integration of climate risks in their credit and lending decisions," the report the positive side, climate scenario analysis and climate risk management is gaining traction, the report said, adding that there is an urgent need for capacity building and clearer regulatory guidelines to support a smooth transition towards sustainable banking practices."This report emphasises that the Reserve Bank of India (RBI), government, and industry stakeholders must take decisive action to accelerate the shift towards green finance," the report further, the report added that many Indian banks are discussing sustainable finance initiatives, but the lack of comprehensive activity lists hinders independent assessments. Most banks do not disclose values of their sustainable financing, as per the to the report, five banks have set net zero targets but lack specific reduction makes it difficult to assess progress and credibility, the report report adds that while the number of banks disclosing third party verification for their scope emissions has increased but significant improvements are still needed.
Zawya
03-03-2025
- Business
- Zawya
NBK accelerates its commitment to a sustainable future
NBK becomes Kuwait's first bank to join the PCAF initiative, pioneering efforts to curb greenhouse gas emissions First financial institution in Kuwait to issue $500 million green bond, reinforcing sustainability leadership NBK is in the process of developing a group-wide environmental and social risk management framework to strengthen ESG integration The bank expanded sustainable financing solutions, empowering clients to transition to greener business models Launched a comprehensive sustainable procurement strategy framework to address environmental, social, and economic impacts across the supply chain Institutionalized alignment with the recommendations of the Task Force for Climate-related Financial Disclosures (TCFD) Strengthened participation in global sustainability initiatives, including COP29 and COP16, to advance Kuwait's vision for sustainability and drive action against climate change. Championed equal opportunities in the workplace by implementing the Bank's diversity, equity, and inclusion (DE&I) statement NBK's Achievements and Recognitions in 2024: Isam Al-Sager ranked first in Kuwait and third in the Middle East's banking and financial services sector on Forbes' 2024 Sustainability Leaders list NBK was named the Best Bank in the Middle East for ESG-Related Loans Award 2024 by Global Finance Recognized as the Best Bank for SMEs in Kuwait by Euromoney Honored by Euromoney as the 'Best Bank for Diversity and Inclusion in Kuwait' for the 'NBK RISE' Program The only bank in Kuwait to earn a designation from CDP for the second year in a row, cementing its role as responsible leader in the banking industry Sustainalytics assigned NBK a '27.1' Medium Risk ESG Rating S&P Global recognized NBK's significant progress with an improved CSA score of 39/100, marking an almost 9-point increase MSCI reaffirmed the bank's sustainability performance with a 'BBB' rating NBK remains unwavering in its commitment to embedding sustainability at the core of its business, operations, and corporate culture, driving forward a vision of sustainable growth that aligns with the highest global standards. In 2024, the bank achieved significant milestones in executing its ESG strategy, demonstrating notable progress toward a sustainable future through a range of innovative initiatives, practices, and solutions. Amid the escalating global challenges posed by climate change, the Bank has introduced a series of initiatives in 2024 focused on mitigating its impact, accelerating the shift to a low-carbon economy, advancing green projects, and bolstering economic resilience against environmental crises. Moreover, NBK Group continues to prioritize diversity, equality, and inclusion throughout its operations, while creating value for stakeholders and empowering communities in the markets it serves by ensuring banking services are accessible to everyone. In 2024, NBK achieved significant progress across the four pillars of its ESG strategy—Governance for Resilience, Responsible Banking, Capitalizing on our Capabilities, and Investing in our Communities. This advancement underscores NBK's leadership in shaping a better, more sustainable, and prosperous future for all. Governance For Resilience Under the pillar of Governance for Resilience, NBK has reached several key milestones in advancing its ESG strategy in 2024. As a trailblazer in sustainability, NBK became the first bank in Kuwait and the sixth bank in the Middle East and North Africa (Mena) to join the Partnership for Carbon Accounting Financials (PCAF) initiative. Joining this initiative puts NBK alongside the world's leading financial institutions in measuring and managing greenhouse gas emissions linked to their lending and investment portfolios. The PCAF initiative seeks to support financial institutions in their efforts to reduce greenhouse gas emissions by offering methodologies for measuring and disclosing emissions linked to various asset classes within their lending and investment portfolios. These asset classes include listed equity and corporate bonds, business loans and unlisted equity, project finance, commercial real estate, mortgages, motor vehicle loans, and sovereign debt. This significant step reinforces NBK's commitment to sustainability and its goal of achieving carbon neutrality by 2060. It also supports the bank's efforts to enhance the measurement and disclosure of greenhouse gas intensity in its customers' activities, facilitating efforts to reduce carbon footprints and promoting the transition to a low-carbon economy. The PCAF initiative is a crucial component of NBK's risk management framework, strengthening the bank's capacity to consistently assess carbon intensity and emission concentrations within its lending and investment portfolios. It also enhances NBK's ability to evaluate and manage climate-related risks and opportunities effectively. The Bank also remained committed to the principles of the United Nations Global Compact (UNGC), having joined its ranks in 2023. Notably, in 2024, NBK submitted its first Communication on Progress, further demonstrating its commitment to transparency and responsible growth. As the largest corporate sustainability initiative for responsible business practices, the UNGC underscores NBK's dedication to supporting practices that drive the sustainable development of Kuwait's economy. The charter, which brings together more than 25,000 companies and nearly 3,000 non-commercial entities in 167 countries around the world, is an important opportunity to collaborate with companies and organizations with a common vision and share best practices and ideas on how to make a positive impact on society and the environment. In the meantime, NBK has enhanced its capabilities to address economic, environmental, and social risks across all segments of the Group, while establishing a strong and effective ESG governance framework both in Kuwait and internationally. The bank has also integrated climate change risks into Pillar II of the Internal Capital Adequacy Assessment Process (ICAAP). In 2024, NBK institutionalized the alignment of its standards with the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD), a framework designed to help companies address the increasing demand for transparency regarding climate-related risks and opportunities. The bank also developed a comprehensive, Group-wide environmental and social risk management framework. Responsible Banking As part of its responsible banking efforts, the second pillar of NBK's ESG strategy, the bank successfully issued its inaugural $500 million green bond in 2024. This issuance, part of its global medium-term securities program, has a 6-year maturity and first call date after 5-years. This landmark transaction marks the first green bond issuance by a Kuwaiti financial institution. It also stands as one of the largest green issues by a conventional financial institution in the region and represents the first green bond issuance by a bank in the Middle East in 2024. Throughout 2024, NBK remained at the forefront of sustainable finance, offering tailored financing solutions and supporting customers in adopting sustainable business models. The bank capitalized on the growing trend towards sustainable finance by launching a range of green transformation services and products across the Group, including green mortgage loans, sustainability-related financing, low-emission housing loans, and reduced interest rates on loans for electric and hybrid vehicles. The Bank has also introduced a Sustainable Procurement Strategy Framework, a comprehensive approach to sourcing products, services, and goods. This strategy considers the environmental, social, and economic impacts across the entire supply chain, ensuring that procurement decisions not only meet immediate needs but also align with broader sustainability objectives. To accelerate the transformation of its branch network into an environmentally friendly and energy-efficient operation, NBK completed the installation of solar panels in 18 of its branches across Kuwait in 2024. This initiative is part of the bank's commitment to reducing carbon emissions and supporting Kuwait's sustainability goals in alignment with Vision 2035. This initiative reaffirms the bank's commitment to its interim goal of reducing total operating emissions by 25% by 2025, as part of its broader objective to achieve carbon neutrality by 2060. Capitalizing on Our Capabilities As part of its tangible efforts to enhance sustainability, NBK Kuwait employees received a total of 1,392 training hours dedicated to ESG topics in 2024, with a focus on sustainability awareness, sustainable finance, and climate risk management. NBK continues to promote equal opportunities as it finalizes its Diversity, Equity, and Inclusion (DE&I) strategy and implements its supporting statement. The bank implemented several strategic initiatives and specialized programs provided by the Bank to support and develop women leaders, which helped increase the number of women holding leadership and supervisory positions at all levels of the Bank. NBK takes pride in being the workplace of choice that supports equal opportunities for both male and female employees. There are 347 professionals in science, technology, engineering, and mathematics (STEM) working in NBK, with women representing 28.8% of this workforce. Investing in Our Communities NBK is dedicated to leaving a lasting social impact and creating value in the communities where it operates through its community investments. The bank strives to provide the best service to its customers, safeguard their interests, and protect their rights, while also promoting financial inclusion, enhancing access to financial services, and improving financial literacy. Consolidating its leadership as the largest contributor to social responsibility in Kuwait, the total value of community investments made by the bank reached KD 30.19 million in 2024, marking a growth of 9.1% compared to 2023. NBK is also committed to contributing KD 8 million to the redevelop Sharq area, with new parking facilities and enhanced green spaces, in addition to donating KD 3 million for the development and beautification of Shuwaikh Beach. These initiatives underscore the bank's commitment to supporting the sustainable development of Kuwait's economy and aligning with the nation's development vision. In support of entrepreneurs in Kuwait, NBK provided loans to SMEs in 2024 totaling KD 25.04 million, marking a growth of 23.5% compared to 2023. Additionally, as part of its ongoing commitment to societal development, particularly in the field of education, NBK continued to provide comprehensive support for the advancement of this sector. The Bankee program, one of the bank's most prominent initiatives aimed at enhancing financial literacy and awareness among school students in Kuwait, continued its activities for the second academic year. During the 2024-2025 academic year, the program reached 61 schools, 7,335 teachers, and 32,235 students, building on the remarkable success achieved in the previous year. Moreover, as part of its commitment to environmental stewardship and responsible waste management, NBK successfully recycled approximately 86% of its total paper consumption in 2024, reinforcing its dedication to sustainability and resource conservation. In line with its commitment to enhancing the health, safety, and well-being of its employees, NBK has launched several initiatives and policies designed to ensure the highest standards of care, in accordance with international regulations. Additionally, the Bank operates a medical clinic, managed by Wara Hospital, offering specialized medical support to employees. This is complemented by various awareness campaigns, focusing on mental health, as well as raising awareness of breast cancer and diabetes. Prestigious Awards and Rankings In a global recognition of NBK's leadership in sustainability, Mr. Isam Al-Sager, Vice Chairman and Group CEO of NBK, was recognized as Kuwait's Top Sustainability Leader and Ranked Third in the Middle East by Forbes. Forbes based its ranking on a set of criteria, including the overall impact of sustainability initiatives at both regional and international levels. The evaluation considered the process of issuing sustainability and ESG reports, with an emphasis on transparency and accuracy, as well as efforts to reduce greenhouse gas emissions. Other factors included waste management, the efficient use of water, energy, and other resources, along with the bank's commitment to renewable energy and the adoption of energy-saving technologies. NBK's sustainability efforts were further recognized in 2024 with several prestigious awards, including the title of the Best Bank for ESG-Related Loans in the Middle East by Global Finance magazine. This accolade highlights the bank's significant strides in sustainable finance, along with its other initiatives aimed at mitigating the adverse impacts of climate change and contributing to the creation of a more sustainable future for all. Euromoney Magazine also awarded NBK the Best SME Bank in Kuwait in recognition of its efforts in supporting SME financing and confirming its leading position as the best bank in the local banking sector in providing smooth and fast banking services and products that meet all the needs of SME customers and help in their development. NBK also received Euromoney's award for 'Best Bank for Diversity and Inclusion in Kuwait' recognizing its Global Women Leadership Initiative 'NBK Rise', a global program dedicated to promoting and supporting women leaders. This prestigious award underscores the bank's commitment to fostering an inclusive work environment where all employees can thrive. It reflects the bank's ongoing efforts to empower women and cultivate a culture of diversity and inclusion, which has become a key driver of organizational success. For the second consecutive year, NBK received a score of "C" from CDP in the categories of Climate Change and Forests 2024. This recognition makes NBK the only bank in Kuwait to receive a rating under the CDP and places it among the highest-rated financial institutions in the GCC within the project. This designation aligns with the Bank's roadmap to strengthen its commitment to transparency in disclosing the environmental impacts of its operations and its efforts to reduce emissions. NBK's involvement in the Carbon Disclosure Project dates back to 2024, when it began submitting its initial disclosures. Further solidifying its commitment to ESG excellence, Sustainalytics assigned NBK a '27.1' Medium Risk ESG Rating, reinforcing its dedication to managing ESG risks effectively. Additionally, S&P Global recognized NBK's significant progress with an improved CSA score of 39/100, marking an almost 9-point increase. Meanwhile, MSCI reaffirmed the bank's sustainability performance with a 'BBB' rating, reflecting NBK's ongoing efforts to integrate ESG considerations into its strategy. These strong ratings underscore the bank's progress in embedding sustainability into its business model and applying ESG standards. Agreements & Partnerships In 2024, NBK entered into a strategic partnership with DHL, a global leader in shipping, to adopt DHL GoGreen Plus, becoming the first bank in Kuwait to join this global sustainability initiative. By joining GoGreen Plus, 100% of NBK's international shipments will be transported using sustainable aviation fuel (SAF) instead of conventional aviation fuel, resulting in a significant reduction in carbon emissions. This move aligns with the bank's ongoing commitment to achieving carbon neutrality by 2060. In support of the transition to a sustainable, low-carbon economy and aligned with Kuwait's comprehensive vision for sustainability and global efforts to mitigate the effects of climate change, NBK participated in the 29th session of the Conference of the Parties (COP29) to the UN Framework Convention on Climate Change in Baku, Azerbaijan. The bank also engaged in the 16th Conference of the Parties to the United Nations Convention to Combat Desertification (UNCCD) held in Riyadh, Saudi Arabia, to contribute to discussions on global initiatives to combat desertification and land degradation. 2025 Goals NBK aims to further advance its journey towards a sustainable future in 2025 by achieving a series of key objectives within its ESG strategy, including the following: Accelerate sustainable financing efforts, aligning with the Bank's goal of building a sustainable asset portfolio worth approximately $10 billion by 2030. Publish the Bank's first green bond impact and allocation report, following the issuance of $500 million green bond in 2024. Achieve a key milestone in sustainability by publishing the first Task Force on Climate-Related Financial Disclosures (TCFD) report. Strengthen relationships with corporate clients, collaborating closely to support their carbon reduction objectives. Establish a benchmark for emissions within the Bank's portfolio. Announce a comprehensive plan to achieve carbon neutrality by reducing emissions. Launch an Environmental and Social Risk Management (ESRM) framework aimed at enhancing capacity building, while increasing training hours focused on ESG, climate risk management, and sustainable finance. Numbers and statistics: In 2024, NBK issued a $500 million green bond, the first of its kind for a Kuwaiti financial institution. KD 30.19 million value of community investments made by the Bank in 2024, marking a growth of 9.1% compared to 2023. KD 25.04 million bank loans to SMEs in 2024, marking a growth of 23.5% compared to 2023. KD 8 million to establish a park and parking facilities in Sharq area. KD 3 million for the development and beautification of Shuwaikh Beach. 1,392 training hours for NBK employees in 2024 on topics related to Governance, Sustainability and Climate Risk Management. Solar panels were installed at 18 branches of the bank in Kuwait as part of its commitment to sustainability. 347 professionals in science, technology, engineering, and mathematics (STEM) working in NBK, with women representing 28.8% of this workforce. Successfully recycled 86% of its total paper usage.
