Sustainalytics: Commercial Bank's sustainable financing aligns with green and social loan principles

Commercial Bank announced that Sustainable Fitch issued its Second-Party Opinion (SPO) regarding the Bank’s Sustainable Finance Framework, 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 Second-Party Opinion, the agency rated the framework’s alignment with these principles as “Excellent.”

In its report, the agency noted that Commercial Bank is one of Kuwait’s oldest financial institutions, offering a range of retail, corporate, and 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 regulatory directives issued by the Central Bank of Kuwait.

The Bank’s sustainability framework covers the four core components of the ICMA principles, defining ten categories for the use of proceeds, including five green categories such as green buildings and renewable energy, and five social categories such as improving access to essential health and education services, and providing adequate and affordable housing. The agency confirms that these categories align with ICMA recommendations regarding the use of proceeds. The framework clearly outlines mechanisms for project evaluation and selection, reporting commitments, and comprehensive data disclosure on the management and use of proceeds. Furthermore, projects financed under this framework support Kuwait’s sustainability plan. The agency expects these projects to contribute to sustainable development and improve the environment by supporting efforts to mitigate the impacts of climate change.

Additionally, the framework is based on standards aligned with recognized scientific classifications, such as the substantial contribution criteria in the European Union 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 (UNSDGs).

Sustainable Fitch provides global solutions and ratings to assess environmental, social, and governance (ESG) performance across various asset classes for institutions and companies, as well as financing frameworks and financial instruments, helping the financial and banking sectors make informed investment decisions. The agency has developed an integrated analytical framework that enables it to provide Independent Second-Party Opinions (SPOs), alongside a range of follow-up ratings issued by the agency, including institution ratings, framework ratings, and financial instrument ratings.