MSCI Upgrades NBK's Sustainability Rating to AA, Places It Among 'Leaders'

In further confirmation of its leadership in sustainability and responsible banking, MSCI, the global ratings agency, has upgraded National Bank of Kuwait’s Environmental, Social, and Governance (ESG) rating from A to AA, moving it from the “Average” category to the “Leader” category, which comprises the world’s most advanced institutions in managing sustainability issues and integrating them into their strategies and operational processes.

National Bank of Kuwait is the first and currently the only Kuwaiti bank to receive an AA rating. This achievement gains additional significance as the new rating places the bank among just six banks in the Gulf Cooperation Council (GCC) countries to hold this classification, reflecting the bank’s advanced position in managing sustainability and governance issues compared to its international peers, and underscoring its success in adopting global best practices in environmental, social, and governance areas.

This rating caps a long journey of organized institutional effort undertaken by the bank over the past years, through integrating sustainability considerations into various aspects of business, financing, investment, and risk management, in line with global best practices and standards. It also confirms the robustness of the institutional framework the bank has developed to support responsible growth and create sustainable value for all stakeholders.

MSCI’s decision reflects growing appreciation for the bank’s approach in several key areas, including sustainable and green financing, applying sustainability standards to financing activities, enhancing due diligence processes and managing environmental and social risks, analyzing climate-related risks, as well as protecting data privacy and information security, strengthening customer protection, and fostering a culture of business ethics and corporate transparency.

This rating also confirms the bank’s success in developing an integrated sustainability system based on embedding environmental, social, and governance considerations across all business aspects, contributing to enhancing the bank’s resilience and its ability to create long-term sustainable value for all stakeholders.

This positive assessment is based on a series of achievements the bank has made in sustainability recently, with continued progress in implementing its long-term goals. The value of sustainable assets and financing reached approximately $5.92 billion, on track toward its target of $10 billion by 2030.

The bank also continued its efforts to reduce its environmental footprint, recording a 37.3% decrease in operational emissions compared to the 2021 baseline, alongside strengthening climate risk management practices and enhancing disclosure and transparency in line with regulatory requirements and growing investor and stakeholder expectations.

Sustainable loans across the group reached $3.06 billion in 2025, a 23% increase from $2.48 billion in 2024.

On the social front, the bank continued its investment in human capital and the development of national competencies, recording more than 83,000 training hours for its employees in Kuwait during 2025, reflecting its commitment to building a work environment based on continuous learning and the development of skills and leadership capabilities.

In this regard, Amir Hanna, Head of Group Communications, said: “Upgrading National Bank of Kuwait’s rating to AA by MSCI represents a significant milestone in our journey toward enhancing sustainability and consolidating its status as a core component of the bank’s strategy and operating model. More importantly, it constitutes an independent international recognition of the progress we have made in developing governance practices, risk management, responsible finance, and enhancing transparency at the institutional level.”

He added: “We are proud to be the first Kuwaiti bank to receive this rating, an achievement that reflects the collective efforts of the various departments and teams working within the bank. The bank’s professional ecosystem has helped entrench an organizational culture that makes sustainability an integral part of the decision-making process.”

Hanna emphasized that the bank will continue to build on this achievement by developing sustainable finance initiatives, strengthening the management of climate, environmental, and social risks, and raising levels of transparency and disclosure, thereby supporting its role in achieving sustainable development and creating long-term positive impact for the economy and society.