"Sustainalytics Fitch": "Commercial Bank" Shows Excellent Alignment with Sustainable Finance Principles
Sustainalytics Fitch issues a positive opinion on Commercial Bank's alignment with sustainable finance principles
Translated by Qiyas from الجريدة — Original source
Commercial Bank announced that Sustainalytics issued its Second-Party Opinion (SPO) regarding the bank’s Sustainable Finance Framework (S.A.K.), deeming 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, Sustainalytics rated the framework’s alignment with the aforementioned principles as “Excellent.”
In its report, the agency noted that Commercial Bank is one of the oldest financial institutions in the State of Kuwait, offering a range of retail, corporate, and international banking services, along with 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 5.4 billion Kuwaiti dinars (equivalent to $17.5 billion) by 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 bank’s sustainability framework covers the four core components of the ICMA principles, specifying 10 categories for the use of proceeds, including five green categories such as green buildings and renewable energy, as well as five social categories, including facilitating access to basic health and education services and providing adequate and affordable housing.
The agency confirmed that these categories align with ICMA recommendations regarding the use of proceeds.
The framework clearly defines the mechanisms for project evaluation and selection, reporting commitments, and the provision of comprehensive data and disclosures 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 the impacts of climate change.
Additionally, the framework is based on standards consistent with recognized scientific classifications, such as the substantial contribution criteria included in the European Union (EU) Taxonomy, reflecting effective contributions to climate change mitigation and supporting the use of proceeds for green and social issuances to achieve 10 of the United Nations Sustainable Development Goals (UN SDGs).
Sustainalytics 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 a comprehensive integrated analytical framework that enables it to issue independent external second-party opinions (SPOs), alongside a range of follow-up ratings it publishes, including institution ratings, framework ratings, and financial instrument ratings.
