Zain, Bitamwil, and Al-Watani Lead in Sustainability
Munaakh for Studies and Research announced the results of the Munaakh Sustainability Index 2025, which the company has published for the third consecutive year to classify the sustainability performance of companies listed on the Kuwait Stock Exchange. Three companies received an “AA” (Advanced Sustainability) rating: Zain Group, Kuwait Finance House, and National Bank of Kuwait. Six companies received an “A” (Achieved Sustainability) rating: Boubyan Bank, Warba Bank, Burkan Bank, Ooredoo Kuwait, Al Mubarak Company, and the Kuwait Stock Exchange.
The number of companies classified in the Munaakh Sustainability Index 2025 rose by 65% compared to 2024, with the index covering 43 companies listed on the Kuwait Stock Exchange, including 38 in the First Market and five in the Main Market.
The 2025 index results showed full compliance with the Capital Markets Authority’s decision mandating companies listed in the First Market to issue sustainability reports, marking a significant shift within a single year. In 2024, when disclosure was not mandatory, only 21 of the First Market companies included in the index issued sustainability reports. In 2025, following the implementation of the decision, this number rose to 38 companies, representing all First Market firms.
This corporate commitment to the decision underscores the effectiveness of the regulatory framework in entrenching sustainability disclosure practices. Furthermore, expanding the mandate to include Main Market companies reinforces sustainability practices among a broader segment of listed firms. Mandatory disclosure does more than just publish data; it drives companies to build the substance behind their disclosures: governance and oversight committees at the board level, ethics and compliance policies, corporate social responsibility and human capital development programs, and systems for measuring environmental impact. Thus, regulation serves as a pathway to actual practice, not merely to reporting.
Four of the nine companies achieving advanced ratings led their respective sectors on the Kuwait Stock Exchange: Zain in the telecommunications sector, Kuwait Finance House in the banking sector, Al Mubarak in the real estate sector, and the Kuwait Stock Exchange in financial services.
The results indicate that sustainability disclosure itself is no longer a differentiating factor among advanced companies, as all nine top-rated companies issue annual sustainability reports aligned with recognized international frameworks and disclose their emissions. However, differentiation among these companies now hinges on the reliability of disclosed data, specifically the linkage of targets to measurable baselines, the independent external assurance of emissions data, and the establishment of board-level committees for sustainability oversight.
Regarding the remaining companies, the results confirm that the next phase is no longer about proving the existence of disclosure, but rather about solidifying its reliability through independent external assurance of emissions data, linking environmental targets to measurable baselines, and assigning sustainability oversight to board-level committees. These areas represent opportunities for progress for listed companies ahead of the 2026 index release.
The highest ratings were concentrated in the banking and telecommunications sectors, with the banking sector accounting for five of the nine companies and the telecommunications sector for two. This reflects a deeper adoption of sustainability concepts in these sectors, translated into concrete practices, alongside stricter regulatory oversight and greater maturity in disclosure. Meanwhile, several sectors included in the index recorded no companies in the top tier. The results revealed a pattern common to most listed companies in the index: the environmental pillar is the weakest among the three pillars for 27 out of 43 rated companies. This indicates that listed companies have made progress in sustainability governance and measuring their social impact, while measuring environmental impact remains the most prominent challenge in the coming phase.
The three companies that achieved this top classification—Zain, Kuwait Finance House (KFH), and National Bank of Kuwait (NBK)—did so through distinct pathways, focusing on environmental measurement, depth of social structure and governance, and sustainable finance, respectively. They share a common approach of aligning their stated commitments with verifiable, documented data.
Zain topped the 2025 Sustainability Climate Index and the telecommunications sector, relying on a climate management program that is the most comprehensive among the rated companies. According to its sustainability report, Zain is committed to carbon neutrality targets validated by the Science Based Targets initiative (SBTi), and has disclosed verified reductions in its emissions. Its Scope 1, 2, and 3 emissions are subject to reasonable assurance, the highest level of assurance provided by Ernst & Young – Al-Enezi & Partners, which also provides limited assurance on the remainder of the report’s disclosures. Furthermore, Zain’s disclosures align with the combined frameworks of GRI, SASB, and TCFD, and the company recorded no cases of corruption, discrimination incidents, or confirmed data breaches during the year. Zain demonstrated the strongest performance in the index across both the environmental and social pillars.
Kuwait Finance House (KFH) received the highest rating, underpinned by the depth of its institutional structure in the social and governance areas. According to the bank’s sustainability report, more than 200 initiatives were implemented in 2025 under its Shared Value Program, distributed across five pillars. Among its key community commitments, KFH pledged KD 18 million to the Heart Diseases and Research Center at Al-Kuwait Hospital, and allocated over KD 20 million to a debt settlement fund for distressed borrowers, in collaboration with the Ministry of Justice. Regarding governance, the bank incurred no fines, penalties, or settlements related to corruption. Its investments in sustainable and green sukuk reached KD 376 million, representing a 30.66% year-on-year growth. KFH’s disclosure in the governance pillar was the strongest among all rated companies across sectors in the annual assessment, placing it at the forefront of the banking sector.
Al-Watani continues to represent the Advanced Sustainability category from the perspective of sustainable finance, with its sustainable assets reaching $6.11 billion, up 23% year-on-year, on track toward its $10 billion target by 2030. The bank operates under a sustainable finance framework aligned with ICMA standards and subject to a limited assurance opinion from S&P Global. It reduced its operational emissions by 37.35% compared to a 2021 baseline, surpassing its interim 2025 target of 25%. Its tenth annual sustainability report undergoes limited dual assurance: an emissions inventory verified by Amber, and limited assurance on the information presented in the report by FBRH, reflecting a decade of consistent disclosure. An “A” rating indicates that the company has an established and effective sustainability system, stable programs, reliable governance, and regular annual disclosures aligned with international frameworks. What distinguishes it from the highest tier is not the absence of practice, but its incompleteness or lack of verification: either because one of the three pillars lags behind the others, or because part of its data has not yet undergone independent external assurance, or because its targets are not linked to measurable baselines.
Boubyan received an “A” rating based on the consistency of its disclosures, having issued its sixth consecutive sustainability report, disclosing Scope 1 and 2 emissions and selected Scope 3 categories. The bank applies climate scenario analysis within its Internal Capital Adequacy Assessment Process (ICAAP) under the RCP 2.6 and SSP 1-2.6 pathways, through semi-annual stress tests covering physical and transition risks. It has also adopted a sustainable finance framework that assigns sustainability scores to counterparties on a semi-annual basis, integrating them into credit application assessments. Additionally, it disclosed full gender pay equity across employee categories at the bank level (1:1 ratio) in accordance with GRI 405-2.
Warba’s “A” rating was based on its sustainable finance instruments, following the issuance of Kuwait’s first sustainable sukuk worth $500 million, with total financing under these instruments reaching $452.6 million. Its sustainable finance framework received a second-party opinion from Sustainalytics confirming alignment with ICMA principles, while the bank subjected the allocation of these funds to limited assurance by KPMG to verify compliance with the framework. However, the sustainability report itself did not undergo external assurance. Governance remains its strongest pillar, as the bank recorded no sustainability-related fines in Kuwait during the year. The bank also stands out in financial inclusion through its “Sidi” account.
Burqan completes the banking sector’s presence in this category, based on the integration of climate into credit risk management. The bank has incorporated climate scenario analysis into its Internal Capital Adequacy Assessment Process (ICAAP) and stress tests since 2022, based on Bank of England (CBES 2021) and Network for Greening the Financial System (NGFS) scenarios. These assessments apply to the entire existing portfolio and are reported semi-annually to the Central Bank of Kuwait. It also included sustainability risk assessments in corporate credit evaluations for exposures exceeding KWD 10 million, covering approximately 69% of its corporate portfolio value, and supported sustainability-linked projects worth KWD 23.5 million. The bank recorded no corruption cases, and its employees acknowledged compliance with the anti-corruption and ethics policy.
Ooredoo Kuwait became the second telecommunications company to achieve advanced ratings, underscoring that disclosure maturity in the sector is not limited to a single entity. The company expanded its emissions measurement scope from Scopes 1 and 2 to include its five operating subsidiaries in Kuwait, Algeria, Tunisia, Palestine, and the Maldives. For the first time, it included emissions from its data centers within Scope 3, although the report notes that measurement across the entire value chain remains incomplete. The company is committed to Ooredoo Group’s five-year sustainability targets for the 2025–2029 period, which include improving energy efficiency by 10%, measured in kilowatt-hours per gigabyte. It has recorded measurable gains in network efficiency, linked its executive management’s performance indicators to sustainability goals, and ensured that all five of its operating subsidiaries underwent training and capacity-building programs on IFRS S1 and S2 standards in preparation for disclosure under these frameworks.
Al-Mabani Company leads the real estate sector, standing as the only firm in the industry to achieve an “A” rating. This distinction is notable given the wider variation in disclosure quality across the sector compared to other indices. Its rating is based on completing the first comprehensive emissions inventory across its entire portfolio, covering its six assets in Kuwait, Bahrain, and Saudi Arabia. The inventory encompasses Scopes 1 and 2, as well as material categories of Scope 3, with 2025 established as the baseline year for setting carbon intensity reduction targets through 2030. The company exceeded its energy consumption reduction target, achieving a 10% reduction against a 3% goal. Projects holding LEED certification or preliminary certification accounted for 40.55% of the portfolio by square meter. Additionally, it signed Kuwait’s first green financing agreement, worth 25 million dinars with National Bank, to fund a market project in Sabah Al-Ahmad City.
Kuwait Bourse topped the financial services sector with an “A” rating, recording no cases of corruption, discrimination incidents, or work-related injuries in 2025. The company applies a sustainability risk management framework based on the COSO methodology, with regular reports submitted to the Board of Directors’ Risk Committee. It issued its fifth annual sustainability report in accordance with GRI standards, SASB standards specific to the stock exchange sector, and the Sustainable Development Goals. The report incorporates elements of International Sustainability Standards Board (ISSB) requirements, reflecting a gradual approach to adopting these standards, and includes a double-materiality assessment that measures the impact of sustainability issues on the company’s business, as well as the impact of its activities on the environment and society. Furthermore, Kuwait Bourse has published a sustainability disclosure guide directed at listed companies.
