KUWAIT: Kuwait Finance House (KFH) Kuwait’s Chief Executive Officer Khaled Yousef Al-Shamlan emphasized that the bank’s inclusion in the FTSE4Good Index reflects the growing interest in adopting environmental, social, and governance (ESG) standards. In an interview with CNBC Arabia, he added that KFH’s inclusion was achieved by meeting all ESG standards and requirements.

Al-Shamlan pointed out that this achievement was the result of the successful sustainability strategy developed by KFH in 2021. Through this strategy, numerous sustainability initiatives were implemented, elevating KFH to a top-ranked company on these global indices.

He emphasized that investors are increasingly drawn to companies that incorporate sustainability standards into their operations. As a result, environmental, social, and governance (ESG) standards have become crucial factors in investment decisions. He explained that KFH’s inclusion in the FTSE4Good Index strengthens its reputation as a trustworthy institution among investors and aligns with the bank’s strategic sustainability objectives.

He explained that this index validates KFH’s commitment to building a sustainable future and increasing value for stakeholders. It also underscores KFH’s dedication to upholding ethical standards across its operations, various banking activities, and in addressing global sustainability challenges.

Al-Shamlan added that KFH employs numerous metrics in its operations, such as the Sustainalytics Index, which evaluates sustainability risks (ESG Risks). He explained that KFH achieved the best ESG risk rating on this index, with an ESG risk rating of 24.7 - the best among Kuwaiti banks. This underscores KFH’s strong commitment to sustainability and its significant progress in identifying and mitigating sustainability-related risks.

“KFH achieved excellence in sustainability through a clear strategy developed and directly overseen by the Board of Directors. As a pioneer, KFH established the banking industry’s first specialized committee for governance and sustainability at the board level. Additionally, the bank was the first to create an integrated sustainability strategy aligned with the Sustainable Development Goals (SDGs), encompassing economic, environmental, social, and governance dimensions. Furthermore, KFH was the first to create a dedicated department for sustainability monitoring. These achievements underscore the paramount importance of sustainability to both the Board of Directors and Executive Management,” Al-Shamlan explained.

He pointed out that KFH releases sustainability reports regularly and has recently launched a Carbon Footprint report, a first-of-its-kind in the local banking industry.

On the financial inclusion front, Al-Shamlan pointed out that KFH’s efforts in this field include offering banking services to customers 24/7 from any location through digital applications, attracting different customer segments, focusing on SMEs, in addition to promoting cybersecurity and customers privacy protection. He indicated that these factors reflect KFH’s excellence in financial inclusion and sustainability. He went on to say that KFH offers recycled banking cards. In 2023, half of the cards issued by KFH were made from recycled materials.

“KFH’s global presence that spans 12 countries in addition to providing banking services in the communities in which we operate are all key elements of the financial inclusion plans,” added Al-Shamlan.

He affirmed that KFH’s efforts and outstanding performance in the sustainability have earned the bank several global awards, including Kuwait’s Best Bank for Sustainable Finance by Global Finance magazine, Kuwait’s Best Bank for ESG by Euromoney and Corporate Social Responsibility - Middle East Award from EMEA Finance. KFH is also the first bank in Kuwait to receive the Global Sustainability Assessment System GSAS - Gold Level Certificate for KFH Auto eco-friendly showroom.

•Offering Green Financing for housing and consumer products that contribute to the preservation of natural resources and reducing energy consumption.