Innovation

KFH stands out in the financial sector for its innovative approach to sustainability, mainly using green Sukuk. These Islamic financial instruments fund environmentally friendly projects addressing critical issues such as reducing carbon emissions and climate change. “We have included in the sustainability report the elements of environment, society, and governance in KFH operations, activity, and management,” explained Al-Rushood. By aligning its financial strategies with global sustainability standards, KFH is innovating within the Islamic finance sector and setting a benchmark for other institutions to follow. This pioneering use of green sukuks underscores KFH’s commitment to integrating sustainability into its financial operations, ensuring that every investment contributes to a greener, more sustainable future.

Awards Affirm KFH leadership in Human Capital Excellence

Inspiration

Driven by a vision to lead the Islamic banking sector and contribute significantly to global sustainability efforts, KFH’s initiatives serve as a powerful source of inspiration. Al-Rushood noted, “We focus mainly on our environmental practices regarding green operations and providing financial and technical advantages to projects that consider environmental aspects and mitigate emissions.” This unwavering commitment to sustainability highlights the bank’s dedication to positively impacting the environment and society. By investing in major infrastructure projects and supporting local businesses, KFH demonstrates that financial institutions can be instrumental in driving sustainable development. Their approach inspires other banks to consider how they can also integrate ESG principles into their operations, proving that profitability and sustainability are not mutually exclusive but can be mutually reinforcing.

Overall impact

The comprehensive sustainability strategy of KFH has led to a significant and multi-faceted impact. Environmentally, the bank has facilitated the transition to more sustainable banking practices, with over 140 million digital transactions in 2020, growing to 160 million in 2021. This shift reduces the carbon footprint associated with traditional banking. Socially, KFH’s commitment to responsibility is evident in its substantial contributions to the Covid-19 Government Relief Fund and various humanitarian projects. Through partnerships with organisations like the Kuwait Red Crescent Society, KFH has provided essential aid to Syrian refugees and supported cancer patients, showcasing its deep commitment to social welfare. These initiatives have strengthened KFH’s reputation and positively influenced countless lives, reaffirming the bank’s role as a responsible and impactful financial institution.

Business benefit

KFH’s dedication to sustainability has yielded significant business benefits, reinforced its financial stability, and fostered growth. Regularly published sustainability reports highlight the bank’s consistent profit growth, high liquidity ratios, and robust capital base, which are essential for long-term success. “KFH is keen on expanding its investment in green sukuks within the total finance portfolio,” emphasised Al-Rushood. This strategic focus on sustainable finance has attracted eco-conscious investors and ensured adherence to international regulatory standards. By aligning its financial goals with sustainability, KFH has enhanced its business growth, operational efficiency, and regulatory compliance, positioning itself as a forward-thinking leader in the financial sector.

Social and environmental benefit

The social and environmental benefits of KFH’s sustainability initiatives are profound and far-reaching. KFH’s commitment to financial inclusivity has made banking services more accessible to individuals with special needs, with dedicated branches and digital solutions enhancing customer experience. Environmentally, KFH’s green initiatives, such as the “KFH is Green” program, promote sustainability through various greening projects, contributing to a healthier and more sustainable planet. Socially, KFH has made significant contributions to healthcare, education, and community development. Initiatives include supporting cancer patients, collaborating with educational institutions for research and student support, and training students with special needs. These efforts underline KFH’s role as a catalyst for positive change, demonstrating that financial success can and should be achieved alongside social and environmental stewardship.

In conclusion, KFH’s integrated sustainability strategy exemplifies a profound commitment to creating a balanced and sustainable future. By embedding ESG principles into its core operations, KFH achieves business success and drives substantial social and environmental benefits, setting a powerful example for the global financial industry.

Interview

Abdulwahab Essa Al-Rushood, CEO