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Kuwait: NBK Embraces Environmental Transparency by Disclosing through CDP

18.01.2023

National Bank of Kuwait (NBK) today announced that it has received a score of ‘C’ from CDP, a global non-profit that runs the world’s leading environmental disclosure platform, for its Climate Change and Forests 2022 Categories. This score is consistent with our roadmap to build environmental and socio-economic resilience. NBK furthered its commitment to environmental transparency by disclosing its environmental impact through CDP. NBK initially disclosed through CDP since 2021, and in June 2022 completed its first CDP’s Climate Change and Forests questionnaires.

Disclosing data around environmental impact is now a business norm. More than 680 financial institutions with US$130 trillion in assets and 280 purchasing organizations representing US$6.4 trillion in procurement spend requested environmental data from companies through CDP. A record 18,700+ companies responded in 2022.

NBK has one of the highest score of CDP disclosures among all financial institutions in the GCC and is the only financial institution who submitted this disclosure in Kuwait.

By disclosing through CDP, National Bank of Kuwait is prepared to respond to the increasing demand for environmental transparency from financial institutions, customers, and policymakers. In its disclosure, NBK shared the results of returning to more normal working patterns as employees moved into its new LEED GOLD HQ building and used 2021 as its new environmental performance baseline, to which we will compare our improvements in the coming years. We also shared our continued long-standing practice of annually assessing and reporting our environmental performance, including our energy and water consumption, waste and resource use, and greenhouse gas GHG emissions. Moreover, NBK highlighted how climate change presents risk and opportunities for the organization by examining in detail the best role for the bank to play in supporting our environmental and societal efforts to overcome this challenge and to grow the bank in the wisest pursuit of specific opportunities. NBK’s primary role will be its financing efforts to effectively respond to this challenge and increase its focus on climate change in our risk management processes. Additionally, in its disclosure, NBK transparently covered environmental commitments as a result of its publicly available Sustainable Financing Framework. These assurances included developing internal targets to reduce our gross operational emissions by 25% by the year 2025 and NBK’s ambition to integrate critical ESG issues into the business, culture and operations, thereby advancing the transition to a sustainable and low carbon economy and contributing to achieve Kuwait’s sustainability vision.

On this occasion, Mr. Isam Al-Sager, NBK Group Vice-Chairman and CEO Group, said: “Today, we are witnessing a new milestone in embracing sustainability that we started years back by being listed among the institutions disclosing the environmental impact of their operations through CDP, the world’s leading environmental disclosure platform.”

“This listing furthers NBK’s commitment to adopting greater transparency in disclosing the environmental impact of all its operations. This comes in line with focusing on embedding ESG standards into all its activities and reinforcing its contribution to supporting the transition towards a sustainable, low-carbon economy,” he indicated.

Al-Sager added: “Our listing in the CDP, coupled with the recent launch of our Sustainable Financing Framework, will further strengthen NBK’s accessibility to global capital markets, where it is already highly trusted and respected.”

“We are adamant to continue progressing towards advancing sustainable finance and responsible banking practices at the core of our operations and currently exploring technologies to support our aspiration to become net zero operationally by 2035,” Al-Sager continued.

“We continue to be committed to playing a responsible role in supporting global efforts to reduce carbon emissions and mitigate climate change risks. To this end, we have set specific measurable and reportable targets, in line with our endeavors to integrate climate-related considerations in our future business model,” he noted.

On his part, Dexter Galvin, Global Director of Corporations and Supply Chains at CDP, commented, “Another year of extreme weather, including floods, droughts and record temperatures, has shown us that climate change is already posing a real and increasing risk to companies and their supply chains. Companies have a fundamental role to play in securing a sustainable net-zero, deforestation-free and water-secure world. It is only through measuring their environmental impact, risks and opportunities that they can manage them and prepare for the future. By disclosing through CDP, National Bank of Kuwait has taken a vital first step. I look forward to their continued dedication to transparency and action for the benefit of all people and the planet.”

It is worth mentioning that National Bank of Kuwait is one of the leading financial institutions in the region in terms of embracing sustainability practices, with major contributions appreciated by international institutions. This includes receiving the Leadership in Energy and Environmental Design (LEED) Gold Certificate for its new Headquarters, recognizing the improvement achieved in all measured and reported environmental metrics including reducing GHG emissions, and increasing recycled paper and plastic. NBK was also listed on Refinitiv AFE Low Carbon Select Index in the Middle East and North Africa (MENA).

Furthermore, National Bank of Kuwait is the largest financial institution in Kuwait and has actual predominance in the commercial banking sector. The bank enjoys one of the highest credit ratings among all banks in the region, collectively from global rating agencies: Moody’s, Standard & Poor’s, and Fitch.

CDP is a global non-profit that runs the world’s environmental disclosure system for companies, cities, states and regions. Founded in 2000 and working with more than 680 financial institutions with over $130 trillion in assets, CDP pioneered using capital markets and corporate procurement to motivate companies to disclose their environmental impacts, and to reduce greenhouse gas emissions, safeguard water resources and protect forests. Nearly 20,000 organizations around the world disclosed data through CDP in 2022, including more than 18,700 companies worth half of global market capitalization, and over 1,100 cities, states and regions.

The full list of companies disclosing through CDP can be accessed here:

https://www.cdp.net/en/responses