Kuwait Finance House (KFH) has released its sixth annual Sustainability Report, covering the period from January 1 to December 31, 2025. The report highlights several achievements across key sustainability areas, including a decline in total emissions to 42,726.2 tons of CO₂ equivalent despite an expanded reporting scope, an increase in sustainable and green sukuk investments to KD 376 million, and the attainment of LEED Gold certification for four additional branches, bringing the total number of certified branches to five, according to an analytical study prepared by Mnakh Studies and Research.
Emissions Reduction
KFH’s total emissions reached 42,726.2 tons of CO₂ equivalent in 2025, representing a year-on-year decline of 3.09% from 44,088.3 tons in 2024, despite expanding reporting coverage to 73 facilities compared with 71 facilities in the previous year. The reduction, estimated at around 1,362 tons, is equivalent to taking nearly 296 cars off the road for a full year, according to Mnakh’s estimate.
Purchased electricity from the national grid accounted for the largest share of emissions at 82.21%, or 35,123.3 tons, followed by direct Scope 1 emissions at 17.27%, while Scope 3 emissions did not exceed 0.52%.
On an intensity basis, average Scope 1 and Scope 2 emissions per employee declined from 27.1 tons to 22.3 tons, a decrease of nearly 17.7%. The bank consumed 52,034,486 kWh of electricity during the year, down 4.84% from the previous year, and reduced water consumption by 12.05% to 74,920 cubic meters. This represents a saving of about 10,271 cubic meters, equivalent to nearly three Olympic-sized swimming pools. KFH also recycled 67,515 kilograms of paper, helping preserve an estimated 1,147 mature trees, according to Mnakh Studies and Research.
Growth in Green Investments
KFH’s investments in sustainable and green sukuk rose to KD 376 million, equivalent to approximately $1.221 billion, in 2025. This represents annual growth of 30.66% compared with KD 287.904 million in 2024.
These investments were distributed between sustainable sukuk at 44% and green sukuk at 56%, within a total investment portfolio of KD 6.496 billion, equivalent to approximately $21.1 billion, which grew by nearly 40% during the year.
The bank’s trade finance portfolio also showed notable alignment with sustainability standards. Around 12.3% of 126,064 letters of credit and 76.9% of 89,635 letters of guarantee were aligned with environmental and social considerations, mainly supporting food security, healthcare, social infrastructure, and environmental projects.
These figures reflect a clear move by KFH toward deeper integration between Islamic banking services and responsible finance objectives.
Expansion of Green Certifications
KFH obtained four additional LEED Gold certifications in 2025 for its Bayan, Khaldiya, Jahra 1, and Jaber Al-Ahmad branches. These joined the Qadsiya branch, which received certification in 2024, bringing the total number of LEED Gold-certified branches to five, a 400% increase compared with 2024.
KFH Auto also received the GSAS Gold sustainability rating. The bank expanded its operational network to 71 branches and showrooms and 554 ATMs, an increase of 17 machines from 2024. It also operated 20,753 point-of-sale terminals, reflecting annual growth of 48.4% from 13,988 terminals in 2024.
KFH continues to provide modern round-the-clock services through its 11 smart KFH Go branches. In addition, 85% of credit cards issued in 2025 were made from recycled plastic, representing an annual increase of 66.67%.
Employment of People with Disabilities
KFH employed more than 3,200 staff members in 2025, representing a workforce of 30 nationalities and a Kuwaitization rate of 83.67%.
The number of employees with disabilities across the group increased to 260, compared with 244 in 2024, a rise of 6.56%. Women’s participation in managerial roles within revenue-generating departments reached 17%, marking annual growth of 22.30%. Women also held 22.50% of positions in science, technology, engineering, and mathematics (STEM) fields, as well as 84 leadership roles across senior and middle management.
The bank provided 96,474 training hours during the year, averaging 26.1 hours per employee, while training expenditure reached KD 406 per employee. Voluntary employee turnover declined to 5.09%, reflecting a year-on-year improvement of 7.7%. In addition, 78 employees received specialized sign language training to support customers with hearing impairments.
Active Community Contributions
KFH continued its cooperation with the Ministry of Justice to settle the debts of financially distressed individuals. Since 2019, the bank has contributed more than KD 61 million toward various debt repayment initiatives.
Through its “Stay Connected Through Goodness During the Month of Goodness” campaign, the bank distributed more than 18,000 iftar meals and provided food baskets to 1,680 needy families in partnership with Kuwait Food Bank and the Kuwait Red Crescent Society.
Downloads of the Holy Quran application developed by the bank exceeded 10 million across Google and Apple app stores. The Al Khair Card, which donates 0.25% of the value of every purchase transaction to charitable causes, generated KD 47,509.575 for charitable work during 2025.
On the environmental front, the total number of trees and shrubs planted with the support of KFH in partnership with the Green Vision Voluntary Team exceeded 12,000 trees and shrubs from 25 native species since 2021. The bank also recorded more than 3,000 volunteer hours across several initiatives, including beach and island clean-up campaigns.
Partnerships and International Frameworks
KFH prepared its report in accordance with the 2021 Global Reporting Initiative (GRI) Standards, the International Integrated Reporting Council (IIRC) Framework, and the Sustainability Accounting Standards Board (SASB) Standards, in addition to undergoing independent third-party verification.
The bank also collaborated with the United Nations Development Programme (UNDP) through the Global Takaful Alliance to provide takaful insurance coverage to 100 million farmers worldwide.
KFH maintains a long-term credit rating of “A” with a Stable Outlook from Fitch Ratings and an “A2” rating with a Stable Outlook from Moody’s. In addition, the bank holds an “A” rating in the MSCI ESG Index.
During the year, KFH received 58 local and international awards, including “World’s Best Islamic Financial Institution” from Global Finance, “Best Sustainability Bank in the Middle East” from EMEA Finance, and “Most Sustainable Projects in the Middle East” from Forbes.
A Transformational Shift
KFH’s 2025 annual Sustainability Report represents a transformational step in aligning environmental commitments with Islamic finance instruments by integrating green sukuk with operational sustainability and governance.
The report reflects a deliberate institutional shift from individual initiatives to a sustainable strategy that links financial strength with environmental and social impact, in line with the integrated reporting framework adopted by the bank for the second consecutive year.
