The National Bank of Kuwait (NBK) has joined the global industry-led partnership, Partnership for Carbon Accounting Financials (PCAF), to measure and disclose the greenhouse gas (GHG) emissions associated with its lending and investment portfolio.
This move means it is the first bank in Kuwait to do so and one of only six banks in the Middle East and North Africa (MENA) region.
The PCAF initiative, launched globally in 2019, aims to assist financial institutions in reducing GHG emissions by offering globally harmonised methodologies to measure and disclose greenhouse gas emissions of all asset classes within their loans and investment portfolios.
These asset classes include listed equity and corporate bonds, business loans and unlisted equity, project finance, commercial real estate, mortgages, motor vehicle loans, and sovereign debt.
Currently, the initiative comprises approximately 480 financial institutions worldwide, including:
- Commercial banks,
- Development banks,
- Asset owners/managers,
- Insurance companies and other financial institutions.
Amir Hanna, Head of Group Investor Relations and Communications at NBK, commented: “We are delighted to join PCAF and contribute to the collective efforts of financial institutions around the world to mitigate the impacts of climate change by promoting the adoption of a consistent framework for measuring financed emissions, which is a critical component for accelerating our efforts towards more sustainable practices.”
Hanna added that NBK’s participation in the PCAF initiative will facilitate the identification, measurement, and disclosure of the emissions associated with its financing activities in a standardised manner, enhancing comparison with industry peers.
This will contribute to informed decision-making based on consistent and comparable data, providing the Bank’s key stakeholders with transparent and reliable metrics to monitor the Bank’s progress in implementing its ESG strategy, it was shared.
Further, Hanna noted the initiative would assist the Bank with measuring and disclosing the emissions intensity of its portfolio companies.
“As the leading financial institution in Kuwait, we aspire to set a benchmark in every endeavor we undertake, particularly in this pivotal domain that will shape the future for generations to come. Our commitment extends to fostering the pillars of sustainable development not only in Kuwait but also across all our markets,” Hanna said.