Kuwait Finance House (KFH) has released its 2023 Sustainability Report, a pioneering document in the Kuwaiti banking sector. This comprehensive report integrates the bank's financial and non-financial performance, aligning with Integrated Reporting principles. By enhancing transparency and accountability, KFH demonstrates its commitment to embedding a sustainability strategy in line with global best practices. The 2023 Sustainability Report provides a comprehensive and integrated overview of KFH's business, encompassing the bank's performance, challenges, opportunities, and key activities related to sustainability, social responsibility, and environmental impact.

KFH Chairman, Hamad Al Marzouq

KFH Chairman, Hamad Abdulmohsen Al Marzouq said that:” On behalf of myself and my colleagues, members of the Board of Directors, I am pleased to present to you the sustainability report of Kuwait Finance House Group. This report highlights the bank’s significant achievements towards sustainability. The release of the report coincides with the successful phases of the acquisition and merger with Ahli United Bank, marking a historic milestone for KFH strengthening its financial stability and yielding significant benefits for shareholders and customers, while solidifying KFH's position as the largest Kuwaiti private sector institution by market capitalization. This step further strengthens our ability and resolve to achieve unprecedented levels of sustainable development across its various dimensions. This can be realized by leveraging the synergy between KFH's ambitious plan to become a top 100 global bank and its meticulously crafted sustainability strategy, which aligns with both Kuwait Vision 2035 and the United Nations Sustainable Development Goals (SDGs).”

A proactive approach to sustainability

KFH considers building a sustainable banking model within (ESG) frameworks as an absolute necessity. This approach aligns with the bank's vision and responsibility for adopting sustainable practices and implementing them in ways that maximize shareholders’ value and benefit the communities it serves. This commitment enhances KFH's reputation and solidifies its position as a leading banking institution both locally and globally.

Digital transformation and sustainability

Driven by KFH's digital transformation vision as a fundamental driver for sustainable development and based on its belief that digital transformation is the primary engine for future growth, KFH's digital banking services have undergone significant development, notably the launch of “Tam” Digital Bank, the first sharia-compliant digital bank in Kuwait. This signifies a substantial achievement in KFH's journey towards leading digital banking services.

Promoting financial inclusion

Given that sustainability is a principal factor in everything we do, KFH’s strategy focuses on enhancing financial inclusion and meeting the financial needs of different communities in which the Group operates, spanning 12 countries around the world. KFH’s strategy also focuses on reinforcing the concepts of inclusion and diversity by maintaining an empowering work environment for employees, enabling women, and employing qualified national talents, while providing necessary training for their development and career growth.

In this respect, KFH made significant progress in 2023 by expanding the principles of sustainability and strengthening its concept. KFH launched Forssah program to invest in talents and empower them. Additionally, KFH directed its focus on supporting women empowerment, leading to the signing of the Women’s Empowerment Principles (WEPs) Agreement with the United Nations Development Programme (UNDP) as the first Islamic Bank in Kuwait. The agreement aims to support the bank in creating a work environment conducive to growth and skill-building for female employees. In this regard, a significant number of women hold senior positions at KFH.

Green finance

Demonstrating its dedication to environmental leadership and responsible financial practices, KFH took a proactive approach by releasing the first-of-its-kind Carbon Footprint report in Kuwait's banking sector. The report includes valuable information, insights, and detailed plans to reduce carbon emissions and mitigate negative environmental impacts in alignment with global climate change initiatives.

Moreover, KFH successfully introduced the green finance campaign, the first of its kind in Kuwait aimed at supporting the construction of private housing with strict environmental standards and emphasizing the use of recycled materials and renewable energy sources.

Additionally, KFH partnered with the UNDP to establish solid standards for Shariah-compliant SDGs, particularly in the realm of green finance.

Added value initiatives

We reaffirm our commitment to be a role model for social responsibility. This strengthens KFH's position as a well-established national financial institution with a strong social mission. Our commitment stems from KFH's identity as a bank that operates according to the principles of enlightened Islamic Sharia, which emphasizes values of giving, solidarity, and Takaful. KFH took part in the United Nations’ Conference of the Parties (COP28) to showcase its valuable efforts towards sustainability. The bank also succeeded in hosting the first discussion on the role of Takaful in mitigating the risks associated to climate challenges in partnership with the UNDP.

In recognition of its successful track record and ongoing commitment to social responsibility through long-term programs, KFH was ranked "Market Leader" in Kuwait by Euromoney magazine. This achievement reflects the exceptional social responsibility results achieved in 2023 and the positive impact on society across all segments. Through strategic partnerships with major institutions and official entities, KFH has been able to provide support and make a positive impact in the communities it serves.

KFH Acting Group CEO, Abdulwahab Iesa Al Rushood

Meanwhile, KFH Acting Group CEO, Abdulwahab Iesa Al Rushood said that:” KFH is committed to creating a clear framework for a more sustainable future. This commitment is reflected in its integration of Environmental, Social, and Governance (ESG) considerations. By doing so, KFH maintains its pioneering role in Islamic banking while implementing sustainable development practices that adhere to Islamic Sharia principles.”

In this regard, we are pleased to share this report with you. It highlights KFH's achievements and its unwavering efforts in leading sustainability plans within the regional Islamic banking industry. The report also emphasizes KFH's dedication to providing an exceptional banking experience that contributes to balancing social and economic development, while also maintaining the environment. This commitment is evident in KFH's pursuit of the Sustainable Development Goals (SDGs) and its ongoing efforts to improve the communities we serve.

Leveraging the momentum from our successful acquisition of Ahli United Bank and the subsequent achievements, we are determined to become a leading global banking entity. This ambition is driven by our commitment to sustainability initiatives, financial inclusion, and offering green finance products across both retail and corporate customers.

A future rooted in sustainability

At KFH, we recognize the immense responsibility we have towards creating a more sustainable future. To this end, we have incorporated over 62 economic, environmental, social, and governance (ESG) goals into our sustainability strategy.

KFH's commitment to social and environmental responsibility extends beyond its "Keep it Green" campaign. The bank fosters a spirit of collaboration by maintaining strategic alliances with local and international institutions. These partnerships include UNDP, Kuwait's Environment Public Authority, and the Kuwait Scientific Center. Through these collaborations, KFH has made significant contributions to various sustainability and environmental preservation projects, initiatives, and activities focused on protecting the environment and mitigating climate change. Moreover, KFH is committed to supporting the transition to a low-carbon economy across the Group, spanning operations in 12 countries worldwide.

KFH also achieved a significant accomplishment by becoming the first bank in Kuwait to receive the Gold Level Certificate for the Global Sustainability Assessment System (GSAS) for its KFH Auto showroom. This recognition highlights KFH Auto's position as the first eco-friendly showroom that adheres to security standards.

Green finance

KFH prioritizes the issuance of green sukuk alongside the development of green finance products for both retail and corporate clients.

In line with its commitment to promoting environmental and sustainability principles, KFH has launched a groundbreaking personal financing campaign in Kuwait. This campaign, titled "Sustainable Financing of Green Products," targets citizens who own private housing plots. It offers a comprehensive range of resources for customers to construct their homes using green sustainable housing and consumer products that contribute to the preservation of natural resources and the harnessing of renewable energy. This initiative provides customers with comprehensive services throughout construction phases, ensuring compliance with the latest environmental protection standards. This also aligns with KFH's emphasis on sustainability and environmental enhancement in financial transactions.

Digital Transformation

KFH has succeeded in leveraging technology advancements and utilizing its expertise in Digital Transformation. This included implementing Artificial Intelligence, collaborating with FinTech companies for innovative products and services, as well as enhancing the infrastructure of adaptable and supportive smart systems and programs. These efforts offered customers with a seamless banking experience while supporting sustainability initiatives. Digital Transformation is recognized as a key component in achieving sustainability goals and moving towards a Carbon-Free future.

In 2023, KFH launched Tam, the first digital bank compliant with Islamic Sharia principles. KFH also introduced a suite of new initiatives to enhance customer convenience, including the Zaheb platform for merchants and SMEs owners, the 'Online Finance' service, and expanded digital services like e-payments, account opening, and issuance of cards with distinctive features. KFH has also made advancements in device performance, enabling features like instant card printing and online gold transactions. Additionally, it partnered with Western Union to facilitate international financial transfers. This allows customers to conduct a wide range of transactions without visiting a branch.

Enriching Human Talents

KFH recognizes that diversity, inclusion, women's empowerment, and investing in young talent are vital for strengthening its human resources. To achieve this, KFH has implemented various initiatives, such as the Forssa program, which focuses on training high-achieving graduates, and has promoted financial inclusion within its services. KFH has also prioritized empowering women, leading to significant progress with a growing number of women holding prominent positions across different departments.

Additionally, KFH has signed a Memorandum of Understanding with the UNDP to exchange knowledge on sustainability. This included a training program for KFH executive management to boost sustainability skills and awareness within the organization.

In a nutshell, I would like to affirm that we are committed to accelerating KFH's sustainability journey. This will allow us to achieve our future milestones at a faster pace and make significant progress in integrating sustainable practices into our daily operations. By doing this, we can ensure both continued growth for the bank and positive impacts on our customers.