The Commercial Bank Issues Its 2025 Sustainability Report

Kuwait Finance House announced the release of its 2025 Annual Sustainability Report, marking a new milestone in its ongoing commitment to integrating the three dimensions of sustainability—environmental, social, and corporate governance (ESG)—into the core of its operational and strategic activities. The report reflects the tangible progress achieved by the bank under the framework of the key drivers of its “Shaping the Future 2022-2026” strategy, with sustainable finance serving as a primary lever to support the transition toward a more balanced and sustainable economy. It underscores the bank’s firm commitment to translating the objectives of Kuwait Vision 2035 and the directives of the Central Bank of Kuwait into practical reality, by enhancing sustainable finance and contributing to the pillars of the national development plan derived from the United Nations Sustainable Development Goals, thereby reinforcing its position as an active institution within Kuwait’s financial sustainability ecosystem.

In this context, Ms. Ibtisam Al-Haddad, General Manager of Strategic Planning and Follow-up, stated: “We are pleased at Kuwait Finance House to release the 2025 Sustainability Report, which comprehensively and holistically presents the various aspects of sustainable development within the bank, including key activities related to environmental sustainability, social responsibility, and governance, supported by statistics and figures that clearly reflect the progress achieved by the bank in these areas.” She added that the bank continued to strengthen its role in sustainable finance during 2025 by expanding its portfolio of financial products and solutions designed to support projects with positive environmental and social impact.

The proportion of green bonds saw a notable increase of 64.9% in value since 2024, a clear indicator of growing demand for sustainable finance instruments and market confidence in these products. Additionally, the bank provided loans and financing facilities to several companies operating in eco-friendly sectors, including funding for strategic projects in clean energy, water treatment, recycling, and infrastructure improvement, thereby serving national development goals and aligning with global environmental commitments.

She emphasized that Kuwait Finance House’s focus on enhancing ESG-linked financing is considered a key pillar in supporting sustainable economic development, noting that these financing facilities accounted for 7.6% of total corporate financing in 2025, concentrated in sectors and projects with positive environmental and developmental impact. Data from the bank’s sustainable finance portfolio reveals a balanced sectoral distribution reflecting a comprehensive strategic vision. Water treatment projects accounted for the largest share at 24.4% of total ESG-linked financing, followed by clean energy and refinery projects at 11.4%. In parallel, the bank continued to support financing facilities linked to economic diversification efforts, with developmental projects capturing the largest share at 43.7% of total such financing, reflecting the bank’s role as a financial partner supporting strategic projects that contribute to enhancing sustainable economic growth in Kuwait.

Regarding environmental responsibility, Ms. Al-Haddad noted that the bank continued to implement a series of initiatives aimed at reducing the environmental impact of its operations and enhancing resource efficiency. In this regard, 25 bank branches were equipped with solar panels, contributing to the avoidance of emissions equivalent to 82.6 tons of carbon dioxide (tCO2e). The bank succeeded in reducing its total greenhouse gas (GHG) emissions by 16.4%, alongside enhancing the use of more sustainable transportation means, with eco-friendly vehicles now constituting 33.3% of the bank’s total fleet, a step reflecting its commitment to applying responsible environmental practices and supporting the gradual transition toward more sustainable solutions.

On the level of social responsibility and public engagement, the bank strengthened its presence in community service by adopting targeted initiatives focused on community empowerment and supporting social issues. The bank allocated 80.1% of its total sustainability expenditure to community empowerment projects and social initiatives, reflecting its commitment to enhancing its positive impact and making a meaningful contribution to achieving sustainable development.

The bank continued its “Ya Zein Tatharana” (Our Heritage is Beautiful) initiative, aimed at preserving Kuwaiti heritage and strengthening national identity, alongside its ongoing efforts in youth empowerment and talent development through programs and initiatives targeting capacity building and supporting young national talents. To access the full 2025 Sustainability Report of Kuwait Finance House, one can visit the bank’s official website or scan the accompanying QR code.