Boursa Kuwait continues its efforts to increase ESG awareness and highlight its strategic long-term value creation

Al Bawaba

02-06-2025

As part of its continued commitment to enhance Environmental, Social and Governance (ESG) practices in the Kuwaiti capital market raise awareness among its participants, Boursa Kuwait organized a workshop entitled 'ESG Reporting Readiness: From Compliance to Strategic Value' on Wednesday, May 28, 2025, in collaboration with Clenergize Consultants, an Environmental and Sustainability consulting firm with a global presence spanning the Middle East, Asia, Europe, Africa and the United States of America.The workshop, led by Clenergize's Managing Director, Mr. Shyam Yadev, and Regional Business Development Manager, Ms. Haya Kalou, highlighted how sustainability reports can be leveraged as a strategic tool to drive growth and serve as a key factor in evaluating regulatory and financial risks. It emphasized the role of sustainability reporting in enhancing access to capital, achieving long-term sustainable growth, strengthening market reputation and improving long-term institutional performance to enable listed companies to keep pace with the evolving ESG and sustainability landscapes.The workshop also highlighted clear evidence linking ESG performance to enhanced shareholder value, improved credit ratings and increased corporate resilience, which was supported by case studies from several global companies. It also covered ESG-related financial instruments, such as sustainability-linked loans as well as bonds and sukuk and explored the incentives for adopting ESG practices. Additionally, the workshop highlighted the latest trends and best practices adopted in Kuwait and across the GCC and demonstrated the added value of ESG practices across various sectors.Boursa Kuwait's Head of Markets Ms. Noura Al-Abdulkareem hailed the workshop, saying, 'Boursa Kuwait reaffirms its commitment to supporting market participants in enhancing their ESG capabilities by keeping them informed of the latest global standards and evolving disclosure practices, aligned with regulatory frameworks. To that end, the exchange recently updated its rules and disclosure requirements to further enhance transparency and reporting practices.''Boursa Kuwait continues to promote the adoption of ESG principles in the Kuwaiti capital market, enabling listed companies to align their operations with global best practices and standards. In the past few years, the company has published a comprehensive ESG Disclosure Guide and has continued to organize specialized workshops in this field since 2020, recognizing the strategic importance of ESG and its positive impact on enhancing business models and creating long-term value, which in turn reinforces confidence in the market and contributes to expanding its investment opportunities,' she added.Disclosure of sustainability reports will become mandatory for companies listed on Boursa Kuwait's 'Premier' Market starting in 2026, in line with the Capital Markets Authority circular number 4 issued earlier this year. As such, companies are required to prepare their 2025 sustainability reports and publish them on the Boursa Kuwait website no later than the second quarter of 2026. Additionally, the exchange has updated its rules and amended disclosure requirements to ensure compliance by listed companies, continuing its efforts to enhance transparency and disclosure standards across the market.'ESG is rapidly evolving from a regulatory obligation to a core business strategy as companies that proactively integrate ESG considerations into their operations are mitigating risks and strengthening stakeholder trust, unlocking access to new sources of capital through their enhanced transparency. This session aimed to demonstrate how ESG can be a driver of long-term value and competitive advantage across various sectors,' said Mr. Shyam Nadev, the Managing Director of Clenergize.He added, "Boursa Kuwait's commitment to integrating environmental, social, and governance (ESG) principles into their operations sets a powerful precedent for the region, as they have shown exemplary leadership in advancing sustainability within the financial sector. Their efforts help pave the way for a more resilient and transparent capital market that is ready for the future. I would like to thank the bourse for hosting this informative session and look forward to more collaborations going forward.'The initiative forms part of Boursa Kuwait's efforts to create a lasting meaningful impact on the community where it operates as part of its Corporate Sustainability strategy and ongoing efforts to equip all market participants with an in-depth understanding of the functioning of capital markets and various tools and techniques required to make informed investment decisions and effectively meet investors' needs. It is also in line with Goal 4 – Quality Education – and Goal 17 – Partnership for the Goals - of the UN's Sustainable Development Goals (SDGs).Boursa Kuwait's Corporate Sustainability strategy stipulates ensuring initiatives apply and fall in line with the company's corporate social responsibility (CSR), industry best practice standards and investor expectations, creating strong and sustainable partnerships that ultimately achieve success and allow Boursa Kuwait to leverage the capabilities and strengths of other companies or organizations that have experience in different fields, and integrating sustainability efforts with the company culture, in order to achieve longevity and an ongoing impact that is carried on and instilled in the day-to-day operations of the stock exchange.
As part of the strategy, Boursa Kuwait has launched many initiatives in partnership with local and international organizations, focusing on support for nongovernmental organizations and charity programs, financial literacy and capital market awareness, the empowerment of women, and environmental protection.