Sustainalytics provides opinion on Commercial Bank's sustainable financing framework as independent external party
Sustainalytics agency issued a positive opinion on the alignment of Kuwait Finance House's sustainable financing framework with international standards for green and social bonds.
Translated by Qiyas from القبس — Original source
Commercial Bank announced that Sustainable Fitch has issued its opinion as an independent external Second-Party Opinion (SPO) regarding the Sustainable Finance Framework of Commercial Bank of Kuwait (K.S.C.P.). 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 as “Excellent.” In its report, the agency noted that Commercial Bank is one of the oldest financial institutions in Kuwait, offering a range of retail and corporate banking services, international banking services, as well as 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 the regulatory directives issued by the Central Bank of Kuwait.
The 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 including facilitating access to basic healthcare and education, 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 criteria and processes for project evaluation and selection, reporting commitments, and provides comprehensive data and disclosures on the management and use of proceeds. Furthermore, projects financed under this framework support the sustainability plan of the State of Kuwait. 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 relies on standards consistent with recognized scientific classifications, such as the relevant “Do No Significant Harm” criteria under the European Union (EU) Taxonomy, reflecting effective contributions to climate change mitigation and supporting green and social bond proceeds to achieve ten of the United Nations Sustainable Development Goals (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 corporations, 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 analytical framework enabling it to provide Independent External Second-Party Opinions (SPOs), alongside a range of follow-up ratings it issues, including institution ratings, framework ratings, and financial instrument ratings.
