National Bank of Kuwait (NBK) announced the official launch of its new Sustainable Financing Framework, marking a significant milestone in the Bank’s environmental, social, and governance (ESG) journey and reinforcing its long-standing commitment to responsible finance, sustainable development, and long-term value creation across Kuwait and the international markets in which it operates.
The new framework enables the Bank to channel capital through a comprehensive suite of sustainable financing instruments, including green, social, blue, and sustainability financing, in alignment with internationally recognized standards and global best practices. This further strengthens NBK’s ability to support sustainable and impact-driven financing and projects that deliver positive, measurable environmental and social impact.
Further underscoring the strength and robustness of the framework, NBK received an “Excellent” rating from Sustainable Fitch as part of its independent Second-Party Opinion (SPO), reflecting the framework’s strong alignment with the Green Bond Principles (GBP), Social Bond Principles (SBP), and Sustainability Bond Guidelines (SBG) issued by the International Capital Market Association (ICMA), in addition to the Green Loan Principles (GLP) and Social Loan Principles (SLP) issued by the Loan Market Association (LMA), the Loan Syndications and Trading Association (LSTA), as well as Asia Pacific Loan Market Association (APLMA).
Through this framework, the Bank commits to financing projects that generate measurable environmental and social impact, including climate change mitigation and adaptation, renewable energy, sustainable and resilient infrastructure development, financial inclusion, and expanded access to essential services and inclusive infrastructure.
The framework also supports the achievement of Kuwait Vision 2035 objectives by directing capital toward projects that contribute to economic diversification, strengthen climate resilience, and support long-term sustainable economic growth.
This milestone further underscores NBK’s growing role as one of the region’s leading sustainable finance institutions through the integration of ESG considerations into the core of its corporate strategy, credit decision-making processes, and risk management frameworks.
In this context, the Bank’s obtaining of an independent Second-Party Opinion from Sustainable Fitch represents a key pillar in reinforcing investor confidence, validating the strength, credibility, and transparency of the Sustainable Financing Framework, as well as the robust governance standards underpinning it. This credible assessment further reflects the strength of the governance framework, the clarity and robustness of the project eligibility criteria, the adoption of comprehensive environmental and social safeguards, and the Bank’s strong commitment to transparency and regular disclosure, reinforcing NBK’s position as a leading financial institution in sustainable finance, both regionally and globally.
The new framework builds on NBK’s established sustainable finance journey. In 2022, the Bank launched its first Sustainable Financing Framework. In June 2024, NBK successfully issued its inaugural USD 500 million green bond, the first of its kind in Kuwait, to support the financing of low-carbon projects. In May 2025, the Bank published its inaugural Green Bond Allocation and Impact Report, confirming the full allocation of the green bond’s net proceeds to eligible green projects.
In 2026, NBK further enhanced its Sustainable Financing Framework by expanding the scope of eligible use-of-proceeds categories in line with the evolving international standards and market practices. The update aims to further deepen ESG integration across the Bank’s business activities, corporate culture, and operations, accelerate the transition toward a low-carbon economy, and contribute to Kuwait’s commitment to achieving carbon neutrality by 2060, and support the objectives of Kuwait Vision 2035. The new Framework will apply to any Sustainable Financing Instruments issued by NBK and / or its subsidiaries following the publication of the Framework.
Key enhancements introduced under the updated framework include strengthening the Bank’s governance approach to provide a higher level of transparency, alongside a broadened scope of eligible asset categories to include advanced sectors and technologies such as biofuels, green hydrogen, carbon capture, utilization and storage (CCUS) technologies, sustainable data centers, and circular economy practices to capitalize on evolving market developments. The updated framework also introduces blue finance as a dedicated, innovative sub-category within green finance to support the protection and sustainable management of marine and water resources.
NBK has made significant progress in advancing its ESG agenda, marked by a comprehensive Group-level strategy that places sustainability at the core of its operations and culture. Guided by its four foundational pillars, Governance for Resilience, Responsible Banking, Capitalizing on Capabilities, and Investing in Communities, the Bank continues to support economic development while positioning itself as a regional role model in sustainable finance. Recognizing its responsibility for driving positive change across the financial sector, NBK remains committed to supporting its clients in the transition toward a low-carbon, more sustainable, and inclusive future across all business segments.
