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Warba Bank issued its first sustainability report for the year 2022 on environmental, social and governance (ESG) practices, which provides an accurate account of the focused and wide-ranging efforts of the Bank's practices related to environment, social and governance throughout 2022. Warba Bank's sustainability report titled "Committed Towards a Sustainable Tomorrow" aims at promoting sustainability and strengthening enduring robust relationships with all its stakeholders. Recognizing the significance of its environmental, social, and economic impact, Warba Bank remains committed to offering transparency about its contributions to sustainable development.
The report complies with international standards such as the Global Reporting Initiative (GRI) in addition to emphasizing the role played by Warba Bank - as a leading national financial institution, and prominent Islamic bank. –Warba Bank is committed to meeting international sustainability standards, diligently aiming to contribute to the overall well-being of Kuwaiti society. Our endeavour permeates various facets of our operations, encompassing numerous practices, partnerships, and activities. This dedication begins within our innermost circle - our bank, extending to our employees, and reaching out to larger circles that include our valued clients, the broader Kuwaiti society, the national economy, and ultimately, the environment. By aligning our corporate social responsibility initiatives with the United Nations' Sustainable Development Goals and the Kuwait National Development Plan 2035, we contribute actively to addressing critical issues like climate change, reducing carbon emissions from economic activities, and promoting financial inclusion. Our endeavors are a testament to our dedication towards a sustainable and prosperous future.
The report includes disclosures on the Global Reporting Initiative (GRI) standards and the United Nations Sustainable Development Goals. In addition to following the Central Bank of Kuwait’s guidelines on sustainable financing, the Sustainability Reporting Regulations of the Capital Markets Authority, Boursa Kuwait’s ESG Guide and follow the metrics set by international institutions such as MSCI and FTSE.
Reflecting on the report, Chairman Mr. Hamad Musaed Al-Sayer commented, "In line with the pioneering standards of sustainability reporting, Warba Bank places emphasis on key topics that define our operations. At the heart of our approach is our unwavering commitment to sustainability and governance. Our steadfast market presence, the Bank's instrumental role in fostering innovation and driving digital transformation, as well as our nurturing work environment are other areas of focus. Equally important are our active community involvement and our tangible impact on the local environment, along with a range of other critical topics. Our objective is to continue setting benchmarks in responsible banking, illustrating our commitment to a prosperous and sustainable future."
Al-Sayer elaborated that Warba Bank views sustainability as a driving force within the Bank's strategic vision. This vision aspires to establish the Bank as a leading entity in the realm of Islamic banking services. "Sustainability is deeply embedded within the operational guidelines and model at Warba Bank," he explained. As an Islamic bank, incorporating sustainability forms an integral part of our strategic outlook. Our core values revolve around upholding the highest ethical standards in every transaction, adhering to the most effective environmental, social, and corporate governance practices. "We aim to position Warba Bank at the forefront through our sustainable performance," Al-Sayer asserted. Looking ahead, we are keen on enhancing this approach while maintaining open, transparent communication with our stakeholders. We remain committed to disclosing our non-financial performance and shedding light on our role and impact concerning environmental, social, and corporate governance indicators."
Al-Sayer also explained that sustainability is closely intertwined with Warba Bank's financial performance and the financial inclusivity it fosters. He highlighted that Warba Bank regularly issues reports demonstrating consistent profit growth, robust liquidity ratios, and a strong capital base that not only supports business expansion but also ensures regulatory compliance. Al-Sayer emphasized the bank's relentless efforts to enhance asset quality and evolve credit facilities policies and governance systems in line with industry best practices. He drew attention to Warba Bank's involvement in financing the National Petroleum Company's environmental fuel project and various construction projects. These strategic are aligned with the United Nations Sustainable Development Goals.
Al-Sayer emphasized that Warba Bank is deeply committed to environmentally-friendly operations, extending financing and technical support to projects that are mindful of environmental factors and aim to reduce emissions. This approach is integral to our contribution towards building a new Kuwait. Alongside this, Warba Bank plays a vital role in stimulating growth, bolstering large local companies, supporting small and medium enterprises, and fostering entrepreneurship - initiatives designed to benefit current and future generations. Warba Bank also gives considerable importance to human resources development, nurturing talent, and engaging the youth. These areas form a key part of Warba's sustainability strategy, with the bank steadfastly focusing on attracting particularly the talent among Kuwaiti citizens.
Al-Sayer continued, stating, "Warba Bank is committed to upholding transparency and continually evolving its policies and professional conduct at work. We strive to integrate environmental standards, social values, governance, and sustainability into our operations as part of enhancing our employees' culture and reinforcing the Bank's principles. We are also making strides towards empowering women and amplifying their representation within the workforce across all Warba departments. We're proud to report significant progress in increasing the representation of women on our team, in alignment with our sustainability strategy. Furthermore, the Bank's management is diligently working to assess and elevate the customer experience, particularly through digital transformation and innovative enhancements to our services.".
Regarding financial inclusion, a key element of sustainability, Al-Sayer noted, "Warba Bank has seen a substantial increase in the number of new accounts opened by clients. We have expanded access to our banking products and services to include people with special needs, enabling greater financial inclusivity. Furthermore, Warba has ensured the constant availability of its banking services to clients through our around-the-clock digital solutions."
As for our efforts to advance social responsibility - a fundamental pillar of sustainability - our initiatives have been holistic and far-reaching, significantly impacting society. These initiatives encompass diverse sectors, including healthcare, humanitarian aid, environment, youth, sports, community solidarity, support for individuals with special needs, and student support, among others.
In concluding his remarks, Al-Sayer emphasized that the significance of the sustainability initiative lies in its capacity to cater to the needs of society and customers, bolster profitability and growth, enhance performance efficiency, and solidify Warba's standing as a leading Islamic financial institution. The sustainability report encapsulates the very essence of Islamic banking and the core of Warba's strategy, rooted in its vision and standing among banks in the Kuwaiti banking sector. It further underscores our commitment to innovation in financial services and products, as well as the promotion of financial inclusion.
Chief Executive Officer, Mr. Shaheen Hamad Al-Ghanem, states that this report marks a significant milestone in our journey towards sustainability. "We are actively integrating sustainability into our operations and establishing an operational infrastructure that fosters wider and more comprehensive environmental awareness within society. This is founded on a robust framework of corporate governance which includes all our practices," he noted. He emphasized that our vision to become the most sustainable bank in Kuwait reaffirms our commitment to upholding sustainability standards at all stages of operations.
Al-Ghanem indicates that this report showcases our practices, initiatives, and partnerships—which are already implemented and those planned for the near future. The coverage is comprehensive, including areas such as stakeholder rights, client engagement, community involvement, women's empowerment, and promoting the employment of Kuwaiti nationals. It also emphasizes our support for small and medium-sized companies, enhancement of the entrepreneurial environment, professional development for employees, support for local procurement, and our contribution towards economic progress. Al-Ghanem added that sustainability has become a fundamental element in the strategies of both institutions and nations. He highlighted that Warba Bank is undertaking initiatives that align with the United Nations' Sustainable Development Goals, the Paris Climate Agreement, and Kuwait Vision 2035.
Furthermore, Al-Ghanem points out that one of the key pillars of sustainability is social responsibility. In this respect, he stated, Warba has demonstrated distinct leadership across various sectors including environmental, health, youth, student engagement, sports, support for individuals with disabilities, volunteer work, humanitarian endeavours, backing for youth projects, and more. Al-Ghanem states that: "Warba has a specialized team of Kuwaiti youth to implement all community initiatives according to plans aligned with United Nations Sustainable Development Goals.
Al-Ghanem further noted that Warba Bank has a proven track record in supporting education and students. He highlighted that the bank actively participates in graduation ceremonies and sponsors graduation projects, reinforcing its position as one of the most significant backers of students' graduation projects. Al-Ghanem explained that "Warba" was one of the most prominent supporters and contributors to the "Let's Be Aware" campaign launched by the Central Bank of Kuwait in cooperation with the Kuwait Banking Association, believing in the importance of promoting financial culture among the various segments of society and within the framework of sustainability.
Al-Ghanem highlighted that Warba Bank's diverse and comprehensive community initiatives align with the UN sustainable development goals, reflecting the bank's influential national and societal role. Al-Ghanem adds, "As the development momentum continues in Kuwaiti society and its aspirations grow, Warba Bank remains attuned to market needs. We are committed to developing innovative banking products and services, in addition to launching educational and awareness initiatives and programs. Our goal is to bolster the national economy and strengthen its resilience against any unforeseen challenges."
Warba Bank has achieved remarkable successes in a relatively short period, securing a leading position in the realm of Islamic digital banking services for individuals. It is one of the local banks with the largest shareholder base, particularly notable for its social contributions. These factors have enabled Warba Bank to foster close relationships with all members of society. Moreover, Warba Bank ranks among the 50 largest banks in the Middle East in terms of market value for the year 2023, according to Forbes Middle East classification noting that the Bank was established on February 17, 2010 by an Amiri decree with the aim of reviving the economic situation after the crisis in Kuwait. On April 7, 2010, Warba Bank joined the group of Islamic banks registered with the Central Bank of Kuwait. The bank met the aspirations of Kuwaitis and earned their trust, as it succeeded, shortly after its establishment, in positioning high in the banking sector, and occupied a leading position in the field of retail Islamic digital banking services.
