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 within 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.

The report underscores the bank’s firm commitment to translating Kuwait Vision 2035 and Central Bank of Kuwait directives into practical reality, by enhancing sustainable finance and contributing to the pillars of the state’s development plan derived from the United Nations Sustainable Development Goals, thereby reinforcing its position as one of the active financial institutions in Kuwait’s sustainable finance ecosystem.

Issam 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 integrally 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 the bank has achieved in these areas.”

Al-Haddad added that the bank continued to strengthen its role in sustainable finance during 2025 by expanding its portfolio of financial products and solutions aimed at supporting 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 objectives and aligning with global environmental commitments.

She clarified 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.

Al-Haddad noted that 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%.

She continued, “In parallel, the bank continued to support financing facilities linked to economic diversification efforts, with developmental projects capturing the largest share of total such financing at 43.7%, reflecting the bank’s role as a financial partner supporting strategic projects that contribute to enhancing sustainable economic growth in Kuwait.”

Regarding environmental responsibility, Al-Haddad pointed out that the bank continued to implement a package of initiatives aimed at reducing the environmental impact of its operations and enhancing resource efficiency. In this regard, 25 of the bank’s branches were equipped with solar panels, which helped avoid emissions equivalent to 82.6 tons of carbon dioxide (tCO2e).

It added that the bank also succeeded in reducing total greenhouse gas (GHG) emissions by 16.4%, alongside enhancing the use of more sustainable transport modes, as eco-friendly vehicles now account for 33.3% of the bank’s total vehicle fleet, a move reflecting its commitment to implementing responsible environmental practices and supporting the gradual transition toward more sustainable solutions.