21/01/2025
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21/01/2025
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KUWAIT CITY, Jan 21: In line with its strong commitment to promoting sustainability and driving sustainable development on both environmental and societal levels, Gulf Bank has announced the completion of its sustainability governance infrastructure. This milestone includes the establishment of frameworks for "Sustainable Finance" and "Environmental, Social, and Governance (ESG) Risk Management." Additionally, the bank has implemented an internal policy to document its sustainability commitments and introduced transparent standards for classifying and evaluating sustainability-related initiatives.
Mr. Abdulrahman Al-Saddah, Chief Risk Officer at Gulf Bank, commented on this achievement, saying: "The completion of our sustainability governance infrastructure represents a key milestone in reinforcing the bank’s commitment to achieving sustainable development goals. It highlights our ongoing efforts to refine our strategies and fully integrate sustainability standards into all future operations and activities."
Sustainable Finance Framework
The newly established Sustainable Finance Framework aligns with the requirements and guidelines of the Central Bank of Kuwait and the Capital Markets Authority, which prioritize the integration of sustainability principles into financial products, governance, and risk management practices. This framework provides clear directives for issuing green loans and bonds, along with comprehensive procedures to guide issuers, investors, and stakeholders in understanding Gulf Bank’s sustainable financing solutions.
Additionally, the framework implements strict criteria for project selection, ensuring that funding is allocated to initiatives with meaningful environmental or social impact. By doing so, it promotes greater transparency and accountability in investment decisions, further solidifying Gulf Bank’s role in advancing both local and global sustainability goals, including those outlined in Kuwait Vision 2035.
ESG Risk Management
Gulf Bank's ESG Risk Management Framework integrates climate-related risks into its internal capital adequacy evaluations and decision-making processes. This approach allows the Bank to assess the impact of these risks on its financial resilience and long-term stability, embedding sustainability as a fundamental aspect of its operations.
Internal Policies and Code of Conduct
Mr. Meshal Al-Wazzan, Chief Strategy Officer at Gulf Bank, emphasized:
"The Bank has developed an internal policy to document its commitments to environmental, social, and governance (ESG) standards. This policy provides a clear framework to ensure all departments align with the Gulf Bank Sustainability Strategy 2024-2030, outlining governance structures, roles, responsibilities, and the ethical practices required to achieve our sustainability objectives."
Transparent Standards for Classifying Initiatives
To enhance its sustainability strategy, Gulf Bank has implemented clear criteria for assessing and classifying ESG-related initiatives. These criteria emphasize the impact and value of each initiative, allowing for informed decisions on resource allocation. This ensures alignment with the Bank’s short, medium, and long-term sustainability goals, as detailed in its 2024-2030 strategy.
The strategy outlines clear targets, timelines, and performance metrics, aiming to deliver measurable progress over the next six years.
Sustainability Report
Gulf Bank has recently released its fourth annual Sustainability Report for 2023, highlighting the significant progress made across multiple sustainability areas. The report demonstrates the bank’s strong commitment to ESG principles and features impactful initiatives that have improved its services, operations, and community-driven projects.
