By Mohammad Kamal
KUWAIT, Jan 10 (KUNA) -- Listed companies on Boursa Kuwait are witnessing a qualitative shift in their operating practices and disclosure methodologies with sustainability reports becoming mandatory as of the start of 2026.
This step reflects the growing trend toward enhancing transparency and boosting environmental, social and corporate governance principles in the Kuwaiti market.
This transformation comes at a time of accelerating global economic changes and increasing demands from investors and international financial institutions to review companies' non-financial performance alongside their traditional financial data.
Sustainability disclosure represents a pivotal tool for investors, as it provides a more comprehensive picture of corporate performance and helps assess non-financial risks that may affect the sustainability of profits in the medium and long term.
These reports also contribute to strengthening confidence of local and foreign investors, improving companies' credit and investment ratings, supporting responsible institutional investment decisions, and enhancing discipline and governance within companies.
Kuwait Capital Markets Authority (CMA) issued a regulatory circular according to which companies listed on the First Market (Premier Market) prepare and submit sustainability reports starting in 2026.
These reports will cover company performance for the 2025 financial year and will be disclosed in Boursa Kuwait's website within specified timeframes to ensure compliance with global best practices.
The mandatory adoption of sustainability reports aligns with the objectives of Kuwait Vision 2035, which places sustainable development, economic diversification and strengthening the role of the private sector among its top priorities.
This approach is an important driver for supporting economic transformation, stimulating innovation and improving business environment, thereby reinforcing Kuwait's position in global competitiveness and investment indices.
Sustainability reports focus on three main pillars. The first is environmental dimension, which addresses companies' policies on natural resource management, energy efficiency, reduction of carbon emissions, waste management and adherence to environmentally friendly practices.
The second pillar is the social dimension, which includes human resources issues such as workplace environment, equal opportunities, training, nationalization, occupational health and safety, as well as companies' roles in supporting the community and social initiatives.
The third pillar, governance, focuses on board structure and independence, compliance policies, risk management, transparency in decision-making, anti-corruption measures and the protection of shareholders' rights.
Boursa Kuwait has played a pivotal role in paving the way for this transformation by launching awareness initiatives, issuing guidance manuals, and organizing workshops and training programs to familiarize companies with sustainability requirements and reporting mechanisms in accordance with approved standards.
These efforts aim to align the Kuwaiti market with global trends and enhance its competitiveness as a transparent and efficient regional financial center.
A number of executive leaders at listed Kuwaiti companies affirmed sustainability is no longer a regulatory option or a formal obligation, but has become a core element of long-term corporate strategies and a fundamental pillar for achieving growth, building trust and complying with international standards, in line with the UN Sustainable Development Goals (SDGs) and Kuwait Vision 2035.
In separate statements to Kuwait News Agency (KUNA), they explained that sustainability reports provide a more comprehensive view of corporate performance, strengthen confidence of local and foreign investors, and improve companies' credit and investment ratings.
Bassel Kanaan, CEO of Gulf Cable and Electrical Industries Group, said the company's commitment to sustainability was the essence of its strategy and operational activities, stemming from its belief that sustainable practices represent the true guarantee of long-term success.
Kanaan explained the company has taken proactive steps to address risks associated with climate change by reviewing and updating its enterprise risk register, particularly in light of the growing global focus on climate action and the issuance of new amendments to international ISO standards.
He affirmed the group's commitment to principles of the circular economy through the adoption of reduction, reuse and recycling policies in environmental and waste management within its facilities.
This has led to a tangible reduction in waste, with key materials such as copper, aluminum, steel, lead, and plastic being reused and recycled with high efficiency.
He noted that governance represents a central element affecting all aspects of the company's operations, from decision-making to risk management and regulatory compliance.
He highlighted the continued development of the institutional framework by strengthening role of the board of directors in sustainability issues and improving levels of transparency and disclosure.
He added that the group has achieved further progress in environmental performance by expanding energy efficiency programs, improving waste management and strengthening water management initiatives, in addition to enhancing social impact through health and safety programs and launching new initiatives for learning and development, as well as supporting diversity, inclusion, and community engagement.
Kanaan emphasized the company's future priorities include progressing toward achieving carbon neutrality by 2035 through continued investment in energy efficiency, renewable energy and emissions reduction initiatives, as well as leveraging digital solutions and sustainable technologies to enhance operational resilience, while continuing to integrate environmental, social and corporate governance practices across all projects.
For his part, Abdulmuttaleb Maarafi, CEO of Commercial Real Estate Company, said sustainability was no longer an option but an integrated business approach that the company is keen to embed in all its operations and initiatives, in line with the SDGs and Kuwait Vision 2035, stemming from its responsibility toward society and environment.
He explained the company has translated its sustainability vision into practical initiatives covering education, capacity building, health, environment and community work, alongside adopting the highest standards of governance and transparency, and strengthening partnerships with government and private entities and civil society organizations, ensuring added value for all stakeholders.
Meanwhile, Maha Al-Rifai, Assistant Vice President of Investor Relations at Kuwait Investment Company, confirmed sustainability was no longer merely a side initiative but an integral part of the company's philosophy in governance and investment, with continuous efforts to align operations with international standards, particularly the principles of responsible investment.
She explained that the company's primary objective is to embed environmental, social and corporate governance principles at the core of decisions, strategies and disclosure policies at all levels.
She noted that 2024 marked a pivotal milestone with the launch of a comprehensive governance and environmental and social responsibility strategy, and the adoption of a supportive governance structure that enhances execution efficiency and accountability.
Al-Rifai added the company has achieved tangible progress in resource efficiency by reducing electricity and water consumption, and lowering emissions, in addition to strengthening commitment to responsible investment by aligning activities with the UN Principles for Responsible Investment.
She confirmed the continued support for work environment, development of national talent and community initiatives, while improving job stability and enhancing diversity.
She noted that the 2024 report reflects the company's commitment to transparency and disclosure, and the entrenchment of sustainability as a key element of its long-term strategy in support of the national economy.
The Kuwait Capital Markets Authority announced on January 4 that 26 out of 34 companies listed on Boursa Kuwait, with a combined market value of KWD 36.7 billion (approximately USD 111.9 billion), issued the 2024 sustainability reports. (end)
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