Introduction
A report prepared by Mnakh for Studies and Research analyzes and evaluates the sustainability report issued by Al Ahli Bank of Kuwait for 2024 by comparing it with international standards and best practices adopted across the global banking sector.
The analysis identifies significant gaps in the bank’s level of alignment with international sustainability standards. While the report includes some limited positive initiatives, it reveals shortcomings in several key areas including environmental performance, social impact, governance frameworks, and transparency in sustainability disclosures.
The review is based on a comprehensive assessment of the bank’s 2024 sustainability report and its alignment with internationally recognized frameworks such as the Global Reporting Initiative (GRI), the Sustainability Accounting Standards Board (SASB), and the recommendations of the Task Force on Climate‑related Financial Disclosures (TCFD), as well as best practices adopted by leading regional and global banks.
The analysis identifies significant gaps in the bank’s alignment with international sustainability standards despite some limited positive initiatives.
Climate Strategy and Environmental Commitments
The analysis shows that the sustainability report lacks a clearly defined climate strategy with measurable targets. In particular, the report does not include any long‑term commitment to achieving net‑zero emissions by 2050, which has become a key benchmark across the global banking sector.
The report also does not outline a detailed climate transition plan describing the steps and timelines required to reach climate targets.
International standards, particularly the recommendations of the Task Force on Climate‑related Financial Disclosures, emphasize the importance of comprehensive disclosure of climate‑related risks and opportunities. However, the report does not include such an assessment, indicating a significant gap in the bank’s understanding and management of climate exposure.
Sustainable Finance and Green Products
The available data indicates a very limited level of financing allocated to sustainable and green projects.
Financing for small and medium‑sized enterprises represents only 1.20 percent of the bank’s total credit portfolio. This figure is significantly lower than international benchmarks, where leading banks typically allocate between 15 percent and 25 percent of their lending portfolios to sustainable finance.
The report also does not indicate the presence of specialized green financial products such as green loans or sustainability‑linked bonds, which are widely considered essential instruments for supporting the transition toward a green economy.
Furthermore, the report does not present any plans to develop such financial products in the near future.
Environmental Data and Carbon Emissions
Although the report includes some information on carbon emissions, the available data appears limited and incomplete.
Reported emissions include 8.73 tons of CO₂ equivalent for Scope 1 emissions, 11,318.79 tons for Scope 2 emissions, and 1,693.31 tons for Scope 3 emissions.
However, the report does not include financed emissions associated with the bank’s lending portfolio, which represent a major component of financial institutions’ overall carbon footprint according to the financial sector carbon accounting framework.
The report also lacks key environmental indicators such as water consumption, waste generation, and recycling metrics, all of which are considered essential elements of comprehensive environmental disclosure under international sustainability reporting standards.
Social Impact and Financial Inclusion
The report shows limited progress in the area of financial inclusion.
According to the disclosures, only six bank branches have been equipped to serve people with disabilities across the entire branch network. This relatively small number does not reflect a strong commitment to improving access to banking services for all segments of society.
The report also lacks comprehensive financial inclusion programs targeting underserved or low‑income populations, which are central priorities within the United Nations Principles for Responsible Banking.
In addition, the report does not provide clear indicators for measuring the social impact of existing initiatives or outline plans for expanding them in the future.
Data presented in the report shows that SME financing represents only 1.20 percent of the bank’s total credit portfolio. This level is significantly below expectations for the banking sector, as small and medium‑sized enterprises play an essential role in economic development and job creation.
The limited level of support provided to this sector therefore reflects a gap in the bank’s broader social impact.
Governance and Sustainability Oversight
The report does not provide clear information regarding the existence of a dedicated sustainability committee at the board level or clearly defined responsibilities for board members in overseeing sustainability matters.
This absence contradicts international best practices, which emphasize the importance of strong governance structures to oversee sustainability at the highest levels of financial institutions.
The report also does not clearly explain how sustainability risks, particularly climate‑related risks, are integrated into the bank’s overall risk management framework.
There is no indication that climate stress testing has been conducted on the bank’s credit portfolio, despite the fact that such assessments are increasingly required by international banking regulators and recommended under Basel supervisory guidance.
Furthermore, the report does not address reputational risks associated with sustainability issues or outline mechanisms for managing these risks.
Disclosure and Reporting Standards
The analysis indicates a lack of alignment with internationally recognized sustainability reporting frameworks.
The report does not appear to follow the Global Reporting Initiative framework and does not provide disclosures consistent with Sustainability Accounting Standards Board standards for the banking sector.
It also lacks the structure and depth typically expected in modern sustainability reports. Leading global banks often publish sustainability reports ranging between 100 and 150 pages, while the Al Ahli Bank of Kuwait report appears limited in both size and content.
The report also suffers from a lack of quantitative metrics and measurable indicators. It does not provide comparisons with previous years, making it difficult to evaluate progress or performance trends.
Additionally, the report does not present clear future targets or measurable commitments, which are key elements of effective sustainability reporting.
There is also no indication that the disclosed information has been externally audited or verified by an independent third party, which is considered an important step in ensuring the credibility and reliability of sustainability disclosures.
The report lacks a comprehensive climate strategy, measurable targets, and sufficient disclosure aligned with international sustainability frameworks.
Conclusion
The detailed analysis of Al Ahli Bank of Kuwait’s 2024 sustainability report reveals substantial gaps in the bank’s alignment with international sustainability standards and practices within the banking sector.
While the report includes a number of limited positive initiatives, such as the adoption of energy‑efficient lighting and participation in coastal cleanup campaigns, these efforts remain relatively small in scale and do not fully address the broader sustainability challenges facing financial institutions.
The report lacks a comprehensive strategic vision and ambitious targets aligned with global banking trends. It also shows weaknesses in transparency, disclosure quality, and adherence to international sustainability reporting frameworks.
These findings highlight the need for a comprehensive review of the bank’s sustainability approach, beginning with the development of a clear strategy supported by measurable targets and extending to the establishment of robust measurement and disclosure mechanisms aligned with global best practices.
Failure to accelerate this transformation may affect the bank’s long‑term competitiveness, particularly as investors and regulators increasingly prioritize sustainability considerations in the financial sector.
