Boursa Kuwait’s 2024 Sustainability Initiatives and Achievements

Boursa Kuwait, the premier stock exchange of Kuwait, has significantly ramped up its commitment to environmental, social, and governance (ESG) principles, positioning itself as a leader in sustainability within the region’s financial markets. The year 2024 marked a pivotal period for Boursa Kuwait, characterized by strategic partnerships, impactful programs, and prestigious accolades, all contributing to its vision of fostering a sustainable financial ecosystem and aligning with Kuwait’s broader national development goals.

Bolstering Strategic Partnerships

A cornerstone of Boursa Kuwait’s sustainability strategy involves forging strong alliances with both local and international organizations. These partnerships enable the exchange to leverage external expertise, resources, and networks to amplify the impact of its sustainability initiatives. Throughout 2024, Boursa Kuwait actively cultivated and strengthened these relationships, resulting in a diverse portfolio of collaborative projects.

One notable partnership was with the United Nations Sustainable Stock Exchanges (SSE) Initiative, a UN body dedicated to promoting sustainable finance practices among stock exchanges worldwide. This collaboration facilitated knowledge transfer and the adoption of international best practices in ESG reporting and disclosure. Boursa Kuwait organized workshops in collaboration with the SSE, the International Financial Reporting Standards (IFRS) Foundation, and the International Finance Corporation (IFC) of the World Bank Group, focusing on the latest sustainability reporting standards. This directly addresses the growing investor demand for transparent and comparable ESG data, enabling informed investment decisions.

The partnership with the International Finance Corporation (IFC) brought financial and technical support to Boursa Kuwait’s efforts to integrate sustainability considerations into its operations and market development. The IFC’s expertise in emerging markets and sustainable finance provided valuable guidance in areas such as green bond issuance and the development of ESG-linked investment products.

Regionally, Boursa Kuwait collaborated extensively with organizations like the Kuwait Red Crescent Society (KRCS). As a Silver Humanitarian Partner for the fourth consecutive year, Boursa Kuwait supported KRCS’s Basic Education program for low-income families, showcasing the company’s commitment to social responsibility. These programs provide vital educational support to vulnerable communities, thereby addressing socio-economic disparities and contributing to a more equitable society.

Furthermore, Boursa Kuwait’s collaboration with the United Nations High Commissioner for Refugees (UNHCR) for the fourth consecutive year demonstrated a strong commitment to humanitarian causes. This partnership provided essential aid, including shelter, healthcare, and clean water, to over 1,600 vulnerable families across the Middle East. The bourse supported UNHCR’s emergency response efforts in Sudan, Syria, and Lebanon, while consistently contributing to the organization’s annual winter assistance program.

In the environmental sphere, Boursa Kuwait continued its collaboration with the Environmental Voluntary Foundation (EVF) and the Kuwait Dive Team, alongside the United Nations Environment Programme (UNEP), to preserve Kuwait Bay. This initiative highlights the importance of protecting the marine environment and its biodiversity, recognizing the critical role it plays in the country’s economy and ecosystem.

These partnerships underscore Boursa Kuwait’s holistic approach to sustainability, addressing environmental, social, and economic challenges in a collaborative and impactful manner.

Implementing Impactful Programs and Initiatives

Beyond strategic partnerships, Boursa Kuwait launched 38 programs and initiatives in 2024, structured around its Corporate Sustainability (CS) strategy’s core pillars of Community and Environment. These initiatives are designed to generate measurable positive outcomes and contribute to the achievement of specific sustainability goals.

In the realm of financial literacy, Boursa Kuwait launched the “The Bell” initiative in collaboration with the Union of Investment Companies, the Kuwait Financial Center (Markaz), the CFA Society, Kuwait University, and the Kuwait Credit Information Network (CINET). This initiative featured training courses, workshops, and awareness sessions led by experts in capital markets and the financial sector. This initiative addresses a critical need in the Kuwaiti market, empowering individuals with the knowledge and skills necessary to make informed financial decisions and participate actively in the capital market.

Recognizing the crucial role of women empowerment, Boursa Kuwait joined over 100 stock exchanges worldwide to “Ring the Bell for Women’s Empowerment” for the seventh consecutive year on International Women’s Day. This initiative, organized by UN Women and the World Federation of Exchanges, underscores the importance of gender equality in the workplace and the broader economy. Boursa Kuwait also hosted a fireside chat on women’s economic empowerment, featuring prominent female leaders from Kuwait and the GCC region, providing valuable insights and inspiration to aspiring female professionals.

The Environment Voluntary Foundation efforts in preserving Kuwait Bay were further supported by Boursa Kuwait. This ongoing initiative focuses on removing waste and hazardous materials from the bay, thereby protecting marine life and supporting the local fishing industry. The Kuwait Dive Team’s efforts resulted in the removal of more than 100 tons of waste over 60 missions, including 60 tons of hazardous materials from 45 missions, 9 tons of abandoned fishing nets, and five ships and boats weighing a total of 31 tons.

Regarding waste management, Boursa Kuwait reinforced its partnership with Omniya Plastic Collection Company, contributing to the recycling of over 420 tons of plastic waste in 2024. This initiative addresses the growing problem of plastic pollution and promotes a circular economy approach to waste management. Omniya’s efforts led to the recycling of over 420 tons of plastic waste—equivalent to approximately 21 million plastic bottles—representing a remarkable 42% increase from the 295 tons recycled in 2023.

Boursa Kuwait’s fourth annual blood donation campaign, held in collaboration with the Kuwait Clearing Company and the Central Blood Bank, exemplified a commitment to public health and social well-being. This campaign, which coincided with the 20th anniversary of World Blood Donor Day, highlighted the importance of blood donation and its life-saving impact on patients in need.

These programs and initiatives demonstrate Boursa Kuwait’s commitment to addressing a wide range of sustainability issues and contributing to the overall well-being of the Kuwaiti community.

Gaining Recognition and Accolades

Boursa Kuwait’s dedication to sustainability has not gone unnoticed. In 2024, the exchange received numerous prestigious awards and accolades from globally renowned publications and organizations, further solidifying its reputation as a socially and environmentally responsible institution.

Global Finance magazine recognized Boursa Kuwait with the “Best in Sustainability Transparency” Award, acknowledging its commitment to transparent and comprehensive ESG reporting. This award highlights the importance of providing stakeholders with accurate and timely information about the exchange’s sustainability performance.

The European awarded Boursa Kuwait with the “Best Sustainable Corporate Governance in Kuwait” and “Best Corporate Governance and ESG Strategy 2024” Awards, recognizing its robust corporate governance practices and its effective integration of ESG considerations into its overall business strategy.

Capital Finance International (CFI) presented Boursa Kuwait with the “Outstanding Contribution to Women’s Empowerment in the MENA Region 2023”, “Best ESG and Governance Strategy among GCC Financial Markets 2023” and the “Outstanding Contribution to Financial Inclusion in GCC Financial Markets 2023” Awards. These awards underscore Boursa Kuwait’s commitment to promoting gender equality, sustainable investment, and financial inclusion in the region.

Furthermore, Boursa Kuwait’s 2023 Sustainability Report was recognized as the Best Sustainability and ESG Report at the Middle East Investor Relations Association (MEIRA) Awards, reaffirming its position as a leading institution in corporate sustainability.

These awards serve as a validation of Boursa Kuwait’s sustainability efforts and provide further motivation to continue striving for excellence in this critical area.

The Kuwaiti Capital Market: An Everlasting Legacy and a Promising Future

Boursa Kuwait celebrated its tenth anniversary in 2024, marking a significant milestone in its role as a primary driver of growth and innovation within the Kuwaiti capital market. The exchange’s establishment in 2014 represented a pivotal moment in the privatization of the Kuwaiti stock market. Boursa Kuwait assumed the crucial responsibility of managing and developing market operations, aligning them with the best-in-class international standards and practices. This transformation has helped to modernize the Kuwaiti capital market, making it more attractive to both domestic and international investors.

The company produced a documentary titled “The History of the Kuwaiti Capital Market,” highlighting the key milestones that have shaped the market since its inception. This initiative serves to educate stakeholders about the market’s rich history and its evolving role in the Kuwaiti economy.

Commitment to Sustainable Development Goals

Boursa Kuwait’s sustainability initiatives are closely aligned with the United Nations Sustainable Development Goals (SDGs), a set of 17 global goals adopted by the UN member states in 2015. The SDGs provide a comprehensive framework for addressing the world’s most pressing social, economic, and environmental challenges.

Boursa Kuwait actively contributes to the achievement of several SDGs, including:

• SDG 5: Gender Equality: Through its women empowerment initiatives, Boursa Kuwait promotes gender equality in the workplace and the broader economy.
• SDG 8: Decent Work and Economic Growth: By fostering financial literacy and supporting entrepreneurship, Boursa Kuwait contributes to sustainable economic growth and the creation of decent work opportunities.
• SDG 12: Responsible Consumption and Production: Through its waste management and recycling initiatives, Boursa Kuwait promotes responsible consumption and production patterns.
• SDG 13: Climate Action: Through its support for environmental conservation efforts and its promotion of green finance, Boursa Kuwait contributes to global climate action.
• SDG 17: Partnerships for the Goals: By forging strategic partnerships with local and international organizations, Boursa Kuwait promotes collaboration and knowledge sharing in support of the SDGs.

By aligning its sustainability efforts with the SDGs, Boursa Kuwait demonstrates its commitment to contributing to a more sustainable and equitable future for all.

Conclusion

Boursa Kuwait’s sustainability initiatives and achievements in 2024 represent a significant step forward in its journey to becoming a leading sustainable financial market in the region. Through strategic partnerships, impactful programs, and prestigious accolades, Boursa Kuwait has demonstrated its commitment to environmental stewardship, social responsibility, and good governance.

Looking ahead, Boursa Kuwait is poised to build on its accomplishments and further integrate sustainability considerations into all aspects of its operations. By continuing to innovate and collaborate, Boursa Kuwait can play a vital role in driving sustainable economic development in Kuwait and the broader region. Boursa Kuwait stands as a beacon of responsible business practices, inspiring other organizations to prioritize sustainability and contribute to a more prosperous and sustainable future.