Zain, Kuwait Finance House, and National Bank of Kuwait Lead in Sustainability Performance

The three companies achieved an AA rating and six companies received an A rating out of 43 companies in the Climate 2025 Index.

"Kuwait Finance House" ranks highest among banks due to the depth of its institutional structure in the social and governance fields.

Climate Research and Studies Company announced yesterday the results of the Climate Sustainability Index 2025, which it has published for the third consecutive year to rank the sustainability performance of listed companies on the Kuwait Stock Exchange. Three companies received an AA rating (Advanced Sustainability): Zain Group for Telecommunications, Kuwait Finance House, and National Bank of Kuwait. Six companies received an A rating (Achieved Sustainability): Boubyan Bank, Warba Bank, Burkan Bank, Ooredoo Kuwait, Al-Mabani Company, and the Kuwait Stock Exchange.

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The index results showed full compliance with the Capital Markets Authority’s decision mandating listed companies in the First Market to issue sustainability reports. This represents a significant shift within one year: in 2024, when disclosure was not mandatory, only 21 companies from the First Market covered by the index issued sustainability reports. In 2025, with the decision taking effect, the number rose to include all companies listed in the First Market.

Zain for Telecommunications ... Highest Ranked in the Index

Zain Group topped the Climate Sustainability Index 2025 and the telecommunications sector, relying on a climate management program that is the most comprehensive among rated companies. According to the company’s sustainability report, Zain is committed to carbon neutrality targets endorsed by the Science Based Targets initiative (SBTi) and disclosed documented emission reductions. Furthermore, the company’s disclosures align with the GRI, SASB, and TCFD frameworks combined, with no cases of corruption, discrimination incidents, or confirmed data breaches recorded during the year. Zain demonstrated the strongest performance in the index across both environmental and social pillars.

Kuwait Finance House ... Highest-Ranked Bank

Kuwait Finance House’s rating was based on the depth of its institutional structure in the social and governance fields. According to the bank’s sustainability report, it implemented more than 200 initiatives last year under its Shared Value Program, distributed across five strategic pillars. Among its notable community commitments was a pledge of KD 18 million to the Heart Diseases and Research Center at Mubarak Al-Kabeer Hospital, and the allocation of over KD 20 million to the Debt Settlement Fund for Defaulters in cooperation 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. Kuwait Finance House’s disclosure in the governance pillar was the strongest among rated companies across all sectors in this year’s assessment, placing it at the forefront of the banking sector.

National Bank of Kuwait ... Sustainable Financing

The National Bank of Kuwait completes the Advanced Sustainability category from the perspective of sustainable financing. Its sustainable assets reached USD 6.11 billion, representing a 23% year-on-year growth, on track toward its target of USD 10 billion by 2030. The bank operates under a sustainable financing framework aligned with ICMA standards and subject to a second-party opinion from S&P Global. The bank reduced its operational emissions by 37.35% compared to a 2021 baseline, surpassing its interim 2025 target of 25%. Its tenth annual sustainability report underwent limited dual assurance: an inventory emission verification by Ambre, and limited assurance on the information presentation in the report by FBRH, reflecting a continuous record of disclosure over a full decade.

Boubyan Bank ... Pay Equity

Boubyan Bank received an A rating based on the consistency of its disclosures, having issued its sixth consecutive sustainability report, disclosing Scope 1 and Scope 2 emissions and selected categories of Scope 3 emissions. 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. Additionally, the bank adopted a sustainable finance framework that assigns sustainability scores to counterparties on a quarterly basis, integrating these scores into credit application assessments. It also disclosed, in accordance with GRI 405-2, full gender pay equity (1:1 ratio) across all employee categories bank-wide.

Warqa Bank ... Financial Inclusion

Warqa Bank’s A rating was based on its sustainable finance instruments, following the issuance of Kuwait’s first sustainable sukuk worth USD 500 million, with total allocated financing reaching USD 452.6 million. Its sustainable finance framework received a second-party opinion from Sustainalytics confirming its alignment with ICMA principles, while the bank subjected the allocation of these funds to a limited assurance review by KPMG, confirming compliance with the framework.

Burkan Bank

Burkan Bank completes the banking sector’s presence in this category, based on integrating climate into credit risk management. Since 2022, the bank has incorporated climate scenario analysis into its Internal Capital Adequacy Assessment Process (ICAAP) and stress tests, based on Bank of England (CBES 2021) and Network for Greening the Financial System (NGFS) scenarios. 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 during the year, and all its employees affirmed compliance with the anti-corruption and ethics policy.