Introduction
In a significant step toward strengthening environmental, social, and governance (ESG) transparency and accountability in Kuwait’s capital market, the Mnakh Sustainability Index announced the results of its comprehensive assessment of corporate sustainability performance for 2024. The evaluation covered 26 companies operating in Kuwait across six key economic sectors.
The Mnakh Sustainability Index 2024 reveals growing momentum among Kuwaiti companies to integrate ESG principles into their strategies and operations.
Top‑Ranked Companies
The results show that the National Bank of Kuwait (NBK) ranked first among companies demonstrating the strongest commitment to sustainability standards, achieving an AA+ rating with a total score of 87.75. NBK delivered outstanding performance across all three ESG pillars, scoring 91.5 in environmental performance, 84.0 in social performance, and 89.5 in governance.
This achievement reflects NBK’s commitment to global sustainability best practices, including reducing carbon emissions by 28.3% compared with its 2021 baseline and issuing Kuwait’s first green bond valued at USD 500 million.
Burgan Bank ranked second with an AA rating and a score of 82.30, demonstrating strong performance in governance and transparency. The bank obtained LEED Gold certification for its headquarters and achieved a 27% reduction in electricity consumption since 2022.
Zain Group ranked third with an AA rating and a score of 81.40, distinguished by exceptional environmental performance with a score of 90.0. This was supported by the validation of its climate targets by the Science Based Targets initiative (SBTi) and its commitment to reducing emissions by 42% by 2030.
Notable Year‑on‑Year Improvements
Reflecting the growing awareness of sustainability across Kuwait’s corporate sector, the comparison between 2023 and 2024 results revealed significant improvements among several companies.
HumanSoft recorded the largest improvement, achieving a 25.15‑point increase, moving from a C rating (30.1) in 2023 to a B rating (55.25) in 2024. This progress resulted from comprehensive improvements across all ESG pillars, with environmental performance increasing by 28 points, social performance by 27.5 points, and governance by 17.5 points.
In the telecommunications sector, stc Kuwait improved by 14.7 points, moving from BB (60.0) to A (74.7), driven by strong environmental gains of 18.5 points and social progress of 13.5 points.
Similarly, Ooredoo Kuwait recorded a 13.25‑point increase, moving from BB to A, supported by a 19‑point improvement in environmental performance, reflecting telecom companies’ commitment to reducing carbon emissions and promoting digital inclusion.
In the financial sector, Kamco Invest achieved a 10.25‑point improvement, moving from BB to A, supported by an impressive 36‑point increase in environmental performance, highlighting the adoption of ambitious environmental strategies and stronger climate disclosures.
Boubyan Bank improved by 8.2 points, advancing from A to AA, driven by a 32‑point improvement in environmental performance, reflecting investments in energy efficiency and green buildings.
Meanwhile, the National Bank of Kuwait maintained its upward momentum, adding 8.15 points and moving from A+ to AA+, with balanced improvements across all ESG pillars.
Burgan Bank improved by 6.85 points, moving from A+ to AA, while the Commercial Bank of Kuwaitimproved by 7.3 points, moving from BB to A, highlighting a broader shift within Kuwait’s banking sector toward integrating sustainability into core strategies.
Sector Performance Analysis
Sectoral analysis revealed notable variations in sustainability performance across industries.
The logistics and transportation sector ranked first with an average score of 79.13, led by Agility, which achieved an A+ rating supported by strong environmental performance with a score of 86.0.
The technology and telecommunications sector ranked second with an average score of 76.95, driven by strong performance from Zain, Ooredoo Kuwait, and stc Kuwait, all demonstrating clear commitments to reducing carbon emissions, strengthening data protection, and promoting digital inclusion.
The financial services sector, which included 15 companies, recorded an average score of 70.59, with significant variation among companies, ranging from 87.75 (National Bank of Kuwait) to 56.9 (Arzan Financial Group). This disparity highlights the gap between large banks that have adopted comprehensive sustainability strategies and smaller financial institutions still at earlier stages of their sustainability journey.
The real estate and construction sector recorded an average score of 69.35, led by Mabanee, which achieved an A rating with a score of 70.7. The manufacturing and chemicals sector averaged 61.54, while the healthcare and pharmaceuticals sector averaged 52.18.
Rating Distribution and Performance Gaps
The rating distribution shows that strong sustainability performance remains concentrated among a limited number of companies.
Only one company received an AA+ rating (National Bank of Kuwait), while three companies received AA ratings (Burgan Bank, Boubyan Bank, and Zain), and one company received an A+ rating (Agility).
Companies rated A represented the largest share, with nine companies (35% of evaluated firms), including banks, financial services companies, and telecommunications firms. While this reflects a basic commitment to sustainability standards, it also highlights gaps in disclosure and implementation.
Meanwhile, five companies received BBB ratings, two companies received BB ratings, and four companies received B ratings, indicating a strong need to strengthen sustainability disclosures and develop more comprehensive ESG strategies.
Notably, National Industries Group received a D rating with a score of zero, due to the absence of sustainability reports or ESG disclosures.
ESG Pillar Performance
Environmental Performance
In the environmental pillar, the National Bank of Kuwait ranked first with 91.5, followed by Zain (90.0)and Boubyan Bank (87.5), driven by initiatives focused on emissions reduction, renewable energy adoption, and improved waste and water management.
Social Performance
In the social pillar, NBK achieved 84.0, excelling in community investment, training, and diversity, followed by Burgan Bank (81.0) and Zain (77.5).
Governance Performance
In the governance pillar, NBK again ranked first with 89.5, followed by Burgan Bank (83.0), supported by strong disclosure transparency, board independence, anti‑corruption policies, and sustainable finance practices.
National Bank of Kuwait ranked first with a score of 87.75 and an AA+ rating, reflecting strong performance across environmental, social, and governance dimensions.
Mnakh Methodology
The Mnakh Sustainability Index is built on the Mnakh Sustainability Methodology, a comprehensive framework supported by artificial intelligence and aligned with leading global standards including GRI, TCFD, and SASB.
The methodology applies sector‑specific weighting to ensure fairness and accuracy in evaluation, prioritizing environmental factors in energy and transportation sectors, governance in the financial sector, and social factors in telecommunications and healthcare sectors.
The assessment also incorporates a Risk & Controversy (R&C) indicator, which tracks negative ESG incidents to ensure a balanced evaluation that reflects actual performance rather than disclosure alone.
Sustainability Is No Longer Optional
The results of the Mnakh Sustainability Index 2024 confirm that sustainability has become a strategic necessity rather than a voluntary initiative.
Leading companies have moved beyond disclosure and integrated sustainability into their core strategies through ambitious climate targets, green financing, strong governance frameworks, and meaningful community investment.
At the same time, the improvements achieved by several companies demonstrate that the sustainability transition is achievable for organizations of all sizes and sectors.
However, the results also highlight a significant gap between leading and lagging companies, underscoring the need for regulators and investors to encourage transparency and reward strong ESG performance.
As Kuwait advances toward Vision 2035 and its ambition to achieve carbon neutrality by 2060, the Mnakh Sustainability Index will continue to serve as an important tool for measuring progress, promoting positive competition, and directing capital toward more sustainable and responsible companies.
