Climate Change Data

Boubyan Bank K.S.C.P.

Climate Impact & Sustainability Data (2020, 2021, 2023)

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:7191 tCO2e/year
Scope 1 Emissions:75 tCO2e/year
Scope 2 Emissions:6984 tCO2e/year
Scope 3 Emissions:133 tCO2e/year
Total Energy Consumption:10,958,176 kWh/year
Water Consumption:3,830,091 m3/year
Carbon Intensity:3.8 MTCO2e per employee

ESG Focus Areas

  • Environment
  • Social
  • Governance

Environmental Achievements

  • 29% decrease in paper consumption
  • 38% decrease in plastic usage
  • 129 MTCO2e GHG savings from paper reduction

Social Achievements

  • 75.1% decrease in customer complaints
  • 98% Customer Satisfaction Index (CSI)
  • 72% Net Promoter Score (NPS)
  • 40.6% decrease in employee turnover
  • 173 new hires
  • 24 interns trained
  • 88 fresh university graduates employed
  • 520 total volunteering hours
  • 12 health-related initiatives implemented
  • 11 youth/educational initiatives implemented
  • 2 environmental initiatives implemented

Governance Achievements

  • Zero data leaks
  • Zero corruption, fraud, bribery, and money-laundering incidents

Climate Goals & Targets

Environmental Challenges

  • COVID-19 pandemic
Mitigation Strategies
  • Acceleration Program
  • Business Continuity Plan
  • Remote working
  • Digital services
  • Economic support and relief package

Supply Chain Management

Responsible Procurement
  • Focus on local procurement (81% of suppliers)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 27001

Third-party Assurance: RSM Consulting W.L.L

UN Sustainable Development Goals

  • Goal 1
  • Goal 2
  • Goal 3
  • Goal 4
  • Goal 5
  • Goal 6
  • Goal 7
  • Goal 8
  • Goal 9
  • Goal 10
  • Goal 11
  • Goal 12
  • Goal 13
  • Goal 16
  • Goal 17

Alignment with SDGs is detailed throughout the report

Awards & Recognition

  • Best Islamic Digital Bank - Global (2019, 2020)
  • 5th Safest Bank in GCC (2020)
  • Best Islamic Digital Bank - Middle East (2019)
  • Best Islamic Digital Bank - Kuwait (2019)
  • Best Islamic Bank - Kuwait (2019)
  • Most Innovative Digital Bank - Kuwait (2019)
  • Best Mobile Banking App - Kuwait (2019)
  • First Place Award in Customer Service - Kuwait (2019)
  • Best Islamic Bank in Customer Service - Kuwait (2019)
  • Best Islamic Bank in a Decade - Kuwait (2019)
  • Kuwait’s Best Islamic Bank in Customer Service (2020)
  • Best Islamic Bank in Kuwait (2020)
  • Best Social Humanitarian Initiative - Noor Boubyan (2019)
  • Replacement & Nationalization of Manpower - GCC (2019)
  • Best Internal Audit Group - Kuwait & GCC (2019)
  • Best Fixed Account Provider (BLME) (2019, 2020)

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:6984 MTCO2e (excluding BLME and BB2 Tech Co)
Scope 1 Emissions:78.2 MTCO2e
Scope 2 Emissions:4222 MTCO2e
Scope 3 Emissions:2283.8 MTCO2e
Total Energy Consumption:6,624,000 kWh (excluding BLME and BB2 Tech Co)
Water Consumption:2,136,800 IG (excluding BLME and BB2 Tech Co)
Waste Generated:731 units of electronic waste (excluding BLME and BB2 Tech Co)

ESG Focus Areas

  • Climate Change
  • Customers
  • Employees
  • Governance

Environmental Achievements

  • Reduced greenhouse gas (GHG) emissions for scope III by 34%

Social Achievements

  • Kuwaitization percentage at Boubyan increased by 2.1%; Kuwaitization rate at managerial levels increased by 4.5%
  • Launched the first International Islamic Digital Bank “Nomo”, offering Sharia’a-compliant wealth management and banking services from the UK for people residing in the GCC region
  • Signed an agreement with Dubai International Finance Corporation (DIFC) FinTech Hive to launch “Boubyan Bank Accelerator Program” to accelerate the growth and expansion of Kuwaiti startups and SMEs

Governance Achievements

  • Zero fines and settlements paid towards financial ethics non-compliance
  • Zero incidents reported of employee discrimination and harassment

Climate Goals & Targets

Environmental Challenges

  • Repercussions from the COVID-19 pandemic
  • Integrating environmental risks within Boubyan’s risk management framework to factors related to climate change
Mitigation Strategies
  • Successfully navigated and streamlined its wide strategic initiatives with the combined collaborative efforts and support of the Group’s dedicated team of experts
  • Considering possible opportunities to integrate environmental risks within its framework

Supply Chain Management

Responsible Procurement
  • Code of conduct for suppliers
  • Vendor Risk Management Framework (VRMF)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core Option

Third-party Assurance: RSM Consulting W.L.L.

Sustainable Products & Innovation

  • Nomo digital bank
  • Prime app
  • Boubyan Invest
  • Brokerage App

Awards & Recognition

  • Best Islamic Bank in Customer Service (12th year in a row)
  • Best Islamic Bank in Kuwait (Global Finance)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:12,871.44 tCO2e
Scope 1 Emissions:118.03 tCO2e
Scope 2 Emissions:11,572.19 tCO2e
Scope 3 Emissions:1,067 tCO2e
Total Energy Consumption:22,820,634.00 kWh (excluding BLME and BB2 Tech Co)
Water Consumption:47,507,496.00 gallons (excluding BLME and BB2 Tech Co)
Waste Generated:38.371 tons of paper recycled

ESG Focus Areas

  • Environmental Impact
  • Social Responsibility
  • Governance and Transparency
  • Leadership and Inclusion
  • Innovative Digital Solutions
  • Responsible Banking

Environmental Achievements

  • Installation of 22 electric vehicle (EV) charging stations at headquarters
  • Paper recycling resulting in GHG emissions savings
  • Launched Plastic Recycling Project
  • Implemented Devices and Electronics Recycling Project
  • Set ambitious environmental targets, including a 20% reduction in Greenhouse Gas (GHG) emissions and achieving a 100% reduction in paper waste by year 5

Social Achievements

  • Implemented a new approach to job evaluation
  • Achieved a Kuwaitization percentage of 70% across all levels at Boubyan Bank
  • Remarkable Kuwaiti representation in top management at Boubyan Bank (89.5%)
  • Reduced staff turnover at BLME from 30% in 2022 to 11.3% in 2023
  • Complaints and Customer Protection Department attained the highest complaint resolution percentage among all Kuwaiti banks
  • Secured top position for the 13th consecutive year in the Retail Banks Index
  • Achieved a 95% Customer Satisfaction Index (CSI) and a 73% Net Promoter Score (NPS)

Governance Achievements

  • Updated Privacy Policy to align with evolving data protection and privacy standards
  • Made substantial investments in bolstering cybersecurity controls
  • Updated Anti-Money Laundering (AML) risk assessment, enhanced AML system, and refined policies and procedures
  • BLME’s risk department conducted an assessment of climate-related risks
  • Latest comprehensive inspection yielded no financial penalties
  • Expanded Compliance Testing and Monitoring Unit to encompass subsidiaries

Climate Goals & Targets

Medium-term Goals:
  • Achieve an NPS rate of 80% by year 5
  • Maintain a CSI rate of 95% by year 5
  • Maintain a customer complaint resolution satisfaction score of 83% by year 5
  • Conduct seven CSR campaigns and/or initiatives by year 5
Short-term Goals:
  • Reduce water consumption by 20% by year 5
  • Reduce GHG emissions by 20% by year 5
  • Achieve 100% electronic waste recycling by year 5
  • Reduce plastic waste by 10% by year 5
  • Achieve 100% reduction in paper waste by year 5

Environmental Challenges

  • Climate change risks
  • Money laundering risks
  • Supply chain disruptions (implied)
  • Data privacy and cybersecurity threats
Mitigation Strategies
  • Updated policies, enhanced cybersecurity controls, and investments in advanced technologies
  • Updated AML risk assessment, enhanced AML system, and revised policies and procedures
  • Developed alternative sourcing strategies (implied)
  • Implemented robust risk management framework

Supply Chain Management

Supplier Audits: 1% coverage under Code of Conduct

Responsible Procurement
  • Preference for local suppliers
  • Code of Conduct for suppliers

Climate-Related Risks & Opportunities

Physical Risks
  • River and sea flooding (BLME)
Transition Risks
  • Regulatory changes, market shifts (BLME)
Opportunities
  • Development of energy-efficient products (implied)

Reporting Standards

Frameworks Used: GRI Standards 2021, UN Sustainable Development Goals (SDGs), New Kuwait Vision, Kuwait Boursa Index

Certifications: ISO 9001:2015, ISO 27001:2022, PCI-DSS 3.2.1, CBK CSF

UN Sustainable Development Goals

  • Goal 8: Decent Work and Economic Growth
  • Goal 12: Responsible Consumption and Production
  • Goal 11: Sustainable Cities and Communities
  • Goal 13: Climate Action
  • Goal 16: Peace, Justice and Strong Institutions
  • Goal 17: Partnerships for the Goals
  • Goal 7: Affordable and Clean Energy
  • Goal 9: Industry, Innovation and Infrastructure
  • Goal 10: Reduced Inequalities
  • Goal 3: Good Health and Well-Being

Initiatives aligned with SDGs through materiality assessment

Sustainable Products & Innovation

  • Digital prepaid card
  • Special offers and discounts on electric cars

Awards & Recognition

  • Best Digital Bank for Small and Medium-sized Enterprises (SME) in Kuwait 2023
  • World’s Best Islamic Digital Bank
  • Best Islamic Digital Bank in Middle East
  • First Place Award in Customer Service
  • Best Islamic Bank in Customer Service for the 13th year in a row
  • Best Islamic Structured Products House Award
  • Most Transformed Islamic Bank in Kuwait
  • Best Bank for SMEs in Kuwait
  • Best Bank for Digital Solutions in Kuwait
  • Best Islamic Bank in Kuwait
  • Best Islamic Financial Institution
  • World’s Best Islamic Retail Bank
  • Best Islamic Bank in CSR – Global
  • Best SME Digital Banking in Kuwait
  • Best Islamic Digital Bank in Kuwait
  • Best Islamic Digital Bank in Middle East
  • World’s Best Islamic Digital Bank
  • 2nd Safest Islamic Bank in GCC
  • 9th Safest Bank in Middle East