Climate Change Data

Environmental Metrics

ESG Focus Areas

• Contributing to Economic Development
• Serving Customers
• Leading in Corporate Governance
• Respecting and Developing People
• Caring for Our Environment
• Giving Back to Our Community

Environmental Achievements

• Construction of LEED-Gold certified headquarters building designed for energy conservation, waste reduction, and minimization of carbon emissions.
• Initiatives to reduce environmental footprint: energy consumption, paper consumption, electronic equipment recycling, and transportation reduction.

Social Achievements

• Launched ‘I AM NBK’ program to enhance customer service and employee engagement.
• Invested KWD 2.55M in training and development programs.
• Established the first specialized center for bone marrow transplantation for children in Kuwait.
• Maintained a low voluntary employee turnover rate of 13.8%.

Governance Achievements

• Periodic review and improvement of the Governance Manual and Policies.
• Developed and implemented new automated systems for compliance, operational risk, and Anti-Money Laundering.

Climate Goals & Targets

Environmental Challenges

• Increased electricity and water use between 2014 and 2015 due to weather and expansion.
• Maintaining a balance between Kuwaitization and employing international talent.

Mitigation Strategies

• New headquarters building expected to decrease environmental footprint.
• Recruitment and training programs to increase the percentage of Kuwaiti nationals in the workforce.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Financial Sector guidelines

Certifications: LEED Gold (for new headquarters)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Best Social Practice in Public Health (GUST CSR Conference)
• Strategic Humanitarian Partner Honor (Kuwait Red Crescent Society)

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance
• People
• Economic Development
• Community

Environmental Achievements

• Scope 1 GHG emissions decreased by around 7% from 2018 to 2019.
• Recycled 74.2 MT of paper (YTD).
• Collected over 3 tons of plastic bottles from July through November 2019.

Social Achievements

• Launched several campaigns and offers for youth.
• Kuwaitization rate increased to 70.5% from 65% in 2018.
• Total CSR monetary contribution and implementation support to the Kuwait community: KWD 19,475,000

Governance Achievements

• NBK was selected to be included in FTSE Russell’s FTSE4Good Index Series in 2019.
• Zero occupational health and safety incidents or violations.
• No customer privacy incidents.

Climate Goals & Targets

Environmental Challenges

• Meeting Kuwaitization targets within a short timeframe.
• Obtaining electricity and water consumption data due to the global coronavirus pandemic.

Mitigation Strategies

• Implemented a transfer strategy and retirement/succession plan to meet Kuwaitization targets.
• Reported 5-year average consumption data for electricity and water, with a plan to update once actual data is available.

Supply Chain Management

Responsible Procurement

• 82% of procurement expenditures allocated to local suppliers.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option

UN Sustainable Development Goals

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Alignment with UN Sustainable Development Goals (SDGs) and Kuwait National Development Plan (KNDP).

Awards & Recognition

• FTSE4Good Index inclusion

Environmental Metrics

ESG Focus Areas

• Serving Customers
• Caring for Our Environment
• Contributing to Sustainable Economic Development
• Respecting and Developing People
• Giving Back to the Community
• Leading in Governance

Environmental Achievements

• Headquarter Building LEED GOLD Certified
• Increased recycling rate by 1.7% to achieve 100% paper recycling – 84.5 tons
• Decreased plastics consumption by 64%

Social Achievements

• Invested KD 1,021,277 into employee training - 71% increase from 2020
• Contributed KD 17,705,000 in total community investment
• Launched Weyay Bank, the first digital bank in Kuwait

Governance Achievements

• Published NBK Human Rights Statement
• Added two new independent directors to our Board of Directors; one with extensive ESG experience

Climate Goals & Targets

Environmental Challenges

• Meeting increasingly stringent customer expectations
• Assuring data security and privacy
• Creating product, service and business innovations
• Increasing operational efficiency
• COVID-19 pandemic impact

Mitigation Strategies

• Accelerating digitization of back- and front-end operations
• Building the infrastructure, culture and capabilities needed for digital transformation, consumer protection, and data security
• Ensuring NBK’s resilience throughout the COVID-19 crisis, rapidly building the required technology infrastructure and social programs

Supply Chain Management

Responsible Procurement

• 71% local suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, Kuwait National Development Plan (KNDP), Boursa Kuwait Sustainability Indicators, UN Sustainable Development Goals (SDGs)

Certifications: LEED Gold, ISO 27001

Sustainable Products & Innovation

• Weyay Bank

Awards & Recognition

• Best Bank in Kuwait 2021
• Innovation in Digital Banking Award - Middle East 2021

Environmental Metrics

ESG Focus Areas

• Governance for Resilience
• Responsible Banking
• Capitalizing on our Capabilities
• Investing in our Communities

Environmental Achievements

• Reduced total electricity consumption by 11%
• Reduced GHG emissions from electricity by 12%, eliminating more than 4,500 metric tons of CO2e
• Reduced total water consumption by 9%
• Achieved LEED Gold Certification for NBK Kuwait’s new headquarters building
• Reduced Scope 1, 2, and 3 carbon emissions by 6% from 2021
• Recycled 127.1 metric tons of paper

Social Achievements

• Launched ‘NBK RISE’ global leadership initiative for women
• 44.0% females in the workforce, 29.3% females in managerial positions
• 39.4% of new hires are female
• 85.5% of new hires are Kuwaitis
• Community Investments totaled KD 23 million (USD 75 million) in 2022, a 45% increase from 2021
• Launched ‘Bankee’ financial literacy program
• Awarded “Best Bank for Diversity and Inclusion in Kuwait” from Euromoney
• Received the “Job Replacement and Nationalization Award” on the Gulf Cooperation Council (GCC) level
• NBK Academy named “Best Youth Programme Initiative” by the Middle East Economic Digest (MEED)

Governance Achievements

• Solidified Board and Executive Management ESG governance, oversight, and accountability
• Zero incidents of Corruption, Fraud, Money Laundering and Bribery
• Received solid first-time score of ‘C’ from CDP, for both the Climate Change and Forest categories
• 9.1% female Board representation
• Integrated ESG metrics into the Board of Directors’, Board Sub-Committees, and Executive Management’s responsibilities

Climate Goals & Targets

Environmental Challenges

• Reducing GHG emissions from financed activities
• Balancing environmental and climate change risks vs. opportunities presented by the transition to support equitable and sustainable economic growth

Mitigation Strategies

• Developed a Sustainable Financing Framework
• Established interim goals to reduce gross operational emissions by 25% by 2025
• Actively exploring innovative research and development technologies to magnify our reliance on renewable energy beyond 2025
• Integrating ESG-related metrics into client credit assessments

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supporting local businesses and SMEs
• Using ESG-related criteria in procurement decisions
• Requiring vendors to sign a Vendor Declaration Form with human rights clauses

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI, SASB, UN SDGs, GHG Protocol, AccountAbility 1000 Stakeholder Engagement Standard (AA1000SES), Boursa Kuwait ESG Reporting Guide, New Kuwait Vision 2035

Certifications: LEED Gold, ISO 27001

Third-party Assurance: DCarbon and V4 Advisors

UN Sustainable Development Goals

• Not disclosed

NBK’s ESG strategy and initiatives contribute to several UN SDGs

Sustainable Products & Innovation

• Electric Vehicle (EV) consumer loan

Awards & Recognition

• Best Bank for Diversity and Inclusion in Kuwait
• Best Financial Innovation Lab in Kuwait
• Job Replacement and Nationalization Award
• Best Youth Programme Initiative

Environmental Metrics

ESG Focus Areas

• Governance for Resilience
• Responsible Banking
• Capitalizing on our Capabilities
• Investing in our Communities

Environmental Achievements

• Reduced electricity consumption by 5.75% YoY and 15.8% compared to our baseline year (2021)
• Reduced overall disclosed GHG emissions by 10.43% compared to baseline year (2021)
• Recycled 99.25 metric tons of paper (87% of total paper usage)
• Approved solar panels installation in 24 branches by 2025
• Installed Building Energy Management System (BEMS) in 22 local branches

Social Achievements

• Women representation reached 44% of the total workforce, with 28.8% in managerial positions
• Launched the “Bankee” financial literacy program in Kuwait’s schools, with 15,940 students and around 3,400 teachers participating
• Community Investments totalled KD 28 million in 2023 (USD 91 million), a 22% increase from 2022
• Launched “She’s Next” initiative in partnership with VISA, a global advocacy program that aims to support women-owned small businesses
• Implemented an Employee Grievance Policy, accessible to all employees via the NBK Group Website
• Launched the Employee Engagement Survey "Your Voice Matters" in 2023

Governance Achievements

• Launched E-KYC Service aimed towards enhancing AML and CFT Compliance
• Adopted measures to handle climate and ESG risks and opportunities
• Institutionalized alignment with the recommendations of Taskforce on Climate-related Financial Disclosures (TCFD)
• Integrated ESG metrics into the Board and Executive Management's responsibilities
• Established a Sustainability & Climate Change Committee
• Joined the UNGC

Climate Goals & Targets

Environmental Challenges

• Managing ESG trade-offs concerning strategic and operational decisions in a region predominately powered by fossil fuels
• Data availability challenges related to e-waste quantity

Mitigation Strategies

• Integrating ESG and climate-related financial risks into its risk management framework, policies, and standards
• Institutionalized alignment with the recommendations of Taskforce on Climate-related Financial Disclosures (TCFD)
• Planning to quantify e-waste more reliably in 2024

Supply Chain Management

Supplier Audits: 100% of all new suppliers were screened for social criteria

Responsible Procurement

• Revised Procurement Policy with the inclusion of ESG principles
• Supplier Code of Conduct
• Human Rights Statement

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC, Boursa Kuwait's ESG Reporting Guidelines, Kuwait Vision 2035

Certifications: ISO 27001, ISO 22301, ISO 31000, LEED v2009 Gold

Third-party Assurance: Ampere and DCarbon Global

UN Sustainable Development Goals

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NBK's initiatives contribute to these goals through various programs and activities related to financial inclusion, education, women empowerment, environmental sustainability, and community development.

Sustainable Products & Innovation

• Eco-friendly EV loans
• Eco-friendly housing loans
• Digitalized business cards

Awards & Recognition

• Best Bank for Corporate Responsibility in the Middle East 2023 (Euromoney)
• Best Implementation of Diversity & Inclusion Initiatives 2023 (MEED)
• Best Initiative for Women in Business 2023 (MEED)
• Best Youth Programme Initiative 2023 (MEED)
• Excellence in Inclusion, Equity, and Diversity Bronze Winner for NBK RISE by SHRM
• Brandon Hall Bronze Award for Best Compliance E-learning Program