Commercial Bank receives 'Sustainalytics' opinion on its sustainable financing framework

Commercial Bank announced that Sustainable Fitch has issued its Second-Party Opinion (SPO) as an independent external second party regarding the Commercial Bank of Kuwait’s Sustainable Finance Framework. The agency deemed the framework fully aligned with the Green Bond Principles, Social Bond Principles, and Sustainability Bond Guidelines issued by the International Capital Market Association (ICMA), as well as with the Green Loan Principles and Social Loan Principles issued by the Loan Market Association (LMA), the Loan Syndications and Trading Association (LSTA), and the Asia Pacific Loan Market Association (APLMA).

As the provider of the independent external second-party opinion, the agency rated the framework’s alignment with the aforementioned principles at an “Excellent” level. In its report, the agency stated that Commercial Bank of Kuwait is one of the oldest financial institutions in the State of Kuwait, offering a range of retail and corporate banking services, international banking, treasury, and investment services through a network of 42 branches. The bank is a public company listed on the Kuwait Stock Exchange, with total assets reaching approximately KD 5.4 billion (equivalent to USD 17.5 billion) at the end of 2025. The bank’s sustainability plan is based on the “New Kuwait 2035” vision and regulatory directives issued by the Central Bank of Kuwait.

The Commercial Bank’s sustainability framework covers the four core components of the ICMA principles, specifying ten categories for the use of proceeds, including five green categories such as green buildings and renewable energy, and five social categories such as improving access to basic health and education services, and providing adequate and affordable housing. The agency confirms that these categories align with ICMA recommendations regarding the use of proceeds. The framework clearly defines mechanisms for project evaluation and selection, reporting commitments, and comprehensive data disclosure on the management and use of proceeds. Furthermore, projects financed under this framework support Kuwait’s national sustainability plan. The agency expects these projects to contribute to sustainable development and environmental improvement by supporting efforts to mitigate climate change impacts.

Additionally, the framework is based on standards aligned with recognized scientific classifications, such as the Significant Contribution criteria in the European Union Taxonomy, reflecting effective contributions to climate change mitigation and supporting the use of proceeds for green and social issuances to achieve ten of the United Nations Sustainable Development Goals (UN SDGs).

Sustainable Fitch is known for providing global solutions and ratings to assess environmental, social, and governance (ESG) performance across various asset classes for institutions and companies, as well as for financing frameworks and financial instruments, thereby assisting the financial and banking sectors in making informed investment decisions. The agency has developed an integrated analytical framework that enables it to provide Independent External Second-Party Opinions (SPOs), alongside a range of follow-up ratings issued by the agency, including institution ratings, framework ratings, and financial instrument ratings.