KUWAIT: In an unprecedented move as the first and only bank in Kuwait, the National Bank of Kuwait published its first annual Taskforce on Climate-Related Financial Disclosures Report (TCFD) for the year 2024. This report emphasizes NBK’s awareness about the importance of following a proactive approach to incorporate climate considerations into its decision-making process and comes as a response to continued transparency requirements about climate-related risks and their potential impact on businesses.
This report echoes NBK’s pioneering role and institutional approach towards fully incorporating sustainability in its operations and businesses, in line with its environmental, social, and institutional governance strategy, and in compliance with its continuous efforts to align its financial disclosures with the best practices within internationally recommended climate-risk frameworks. Moreover, the report evaluates the extent to which the bank’s non-retail portfolio is exposed to climate-change risks, how its mitigating impact, and the opportunities climate change provides as per the recommendations of the TCFD.
The report also explores several achievements by NBK in the field of sustainability in the year 2024, including issuing its debut $500 million Green bond, which is the first of its kind among local financial institutions. In addition, it highlights NBK’s sustainable asset, which reached $5 billion as of end of December 2024 and constitutes 50 percent of its aim to reach $10 billion by 2030.
It also points to the initiatives that NBK presented in 2024 that aim to minimize the impact of climate change, accelerate the transformation into a low-carbon economy, support green projects, and enhance economic flexibility in facing environmental crises.
Additionally, the report outlines NBK’s development of an innovative approach aimed at integrating climate- risk with the internal capital adequacy assessment process (ICAAP) in line with pillar 2 capital requirement, which reflects NBK’s commitment to organizational resilience and business continuity.
In the report, the bank also states the objectives for the year 2025, including incorporating environmental, social, and institutional governance measures in its credit evaluation process of current and new corporate clients as well as conducting a comprehensive evaluation of their ESG performance, particularly with regards to mitigating and adapting to climate-risks. The National Bank of Kuwait strives to enhance its capabilities to support transformation plans for its clients and provide sustainable financial solutions, while expanding its sustainable retail offers that include eco-friendly auto loans and eco-friendly residential loans.
In 2024, NBK institutionalized its process of aligning its standards with the recommendations of the Taskforce on Climate-related Financial Disclosures (TCFD). This comes as part of its awareness of the significant impact that climate change could have on its operations, customers, and the broader financial landscape, and as part of its commitment to factoring climate-related risks and opportunities into its strategy to ensure preparedness for future changes. Recognizing the essential role of appropriate management of climate-related risks and opportunities in enhancing governance resilience, NBK skillfully manages the balance of environmental, social, and corporate governance issues in its strategic and operational decisions.
