Boubyan Bank - Sustainability Report 2023
Towards perfection
In the Name of Allah, Most Gracious, Most Merciful
"Verily, Allah is the All-Provider, Possessor of Power, the Mighty"
Allah the Almighty speaks the truth
H.H. Sheikh
Mishal Al-AhmadAl-JaberAl-Sabah
Amir of the State of Kuwait
1 | Boubyan Group | Sustainability Report | 2023 | Boubyan Group | Sustainability Report | 2023 |
2
Report Overview
Standards and Principles
Standards and Principles
Boubyan asserts its commitment to sustainable business practices by continuing to report on its Environment, Social, and Governance (ESG) performance for the fourth consecutive year. This report provides an overview of the Group's sustainability performance for the reporting period January 1, 2023 to December 31, 2023. Developed in accordance with the principles of the Global Reporting Initiative (GRI) Standards 2021 (among a selection of others), the report aims to provide a comprehensive understanding of Boubyan Group's most significant impacts on the economy, environment, and society, including its human rights implications, and how it manages these impacts.
Adhering to national and international sustainability drivers, Boubyan has aligned its reported ESG initiatives with the United Nations Sustainable Development Goals (SDGs), New Kuwait Vision, and the Kuwait Boursa Index.
Reporting Boundary
The sustainability report has been crafted for Boubyan Group, comprising Boubyan Bank and its affiliated entities, including Bank of London and the Middle East (BLME), BB2 Digital and Technology Services Limited (BB2 Tech Co), Boubyan Capital, Boubyan National, and Boubyan Takaful. The report boundary encompasses operational facilities, branches, and the Head Office located in Kuwait, with the exception of BLME and BB2 Tech Co, which operate outside Kuwait's jurisdiction. The sustainability performance detailed in this report pertains to the aforementioned entities, unless explicitly stated otherwise.
In the report, any mention of "Boubyan" or "Group" indicates group-wide data that covers: Boubyan Bank, BLME, BB2 Tech Co, Boubyan Capital, Boubyan National, and Boubyan Takaful.
Contact
If you have any queries about the content of this report, please contact the Boubyan's team via: info.sustainability@bankboubyan.com
3 Boubyan Group | Sustainability Report | 2023
Chairman's Message
Abdulaziz Abdullah Dakheel Al-Shaya
Chairman (Non-Executive)
It is my pleasure to welcome you to our fourth Sustainability Report underpinning Boubyan's commitment to the noble Islamic values of fairness, honesty, integrity, and transparency. Through these guiding principles, we continue to address our stakeholder needs and define our character, culture and the foundation upon which our reputation stands.
In today's banking landscape, digital solutions play an increasingly vital role, offering enhanced accessibility, efficiency, and convenience for customers. Recognizing this, Boubyan continues to prioritize the advancement of our digital offerings, both internally within our operations and in the products and services we provide. We are proud to have been named the Best Digital Bank for Small and Medium-sized Enterprises (SME) in Kuwait 2023 by Global
Finance in testimony of our advancement in this area. Another testimony we are proud of is being named as World's Best Islamic Digital Bank and Best Islamic Digital Bank in Middle East by Global Finance.
In line with our values, we remain committed to compliance and business ethics. We take a proactive approach to addressing emerging risks, such as climate change and Anti-Money Laundering(AML), and this is reflected in our updated policies, enhanced cybersecurity controls, and investments in advanced technologies. Furthermore, our emphasis on digital innovation, with high adoption rates of our mobile applications among retail and corporate customers, underscores our dedication to enhancing customer experience and operational efficiency.
At Boubyan, our organizational management approach aims to foster diversity and inclusion, empower women, provide appropriate employee benefits, and prioritize employee health and safety. Knowing the value of a well- informed workforce, we ensure our employees receive the necessary training to excel in their roles through continuous engagement and development initiatives.
We are fully aware that our success is dependent on the satisfaction and retention of our valued customers. Thus, we remain committed to gathering feedback through various channels and conducting surveys to maintain a strong connection with our customer base.
As a key player in the economy, we understand the importance of driving sustainable practices
and aligning with countries' environmental goals. Accordingly, Boubyan aims to adopt less energy-intensive solutions, manage waste and water more efficiently, and work towards mitigating our Greenhouse Gas (GHG) emissions. This strategic approach aligns with our overarching goal of supporting national net-zero targets.
In closing, I hereby convey my deep appreciation to all stakeholders who have played a role in Boubyan's sustainability initiatives. We are pleased to share our progress in environmental impact, social empowerment, and governance excellence. Together, we are shaping a future that embraces sustainability and responsible banking.
5
Boubyan Group | Sustainability Report | 2023 | Boubyan Group | Sustainability Report | 2023 |
6
Group CEO's Message
Adel Abdul Wahab Al-Majed
Group CEO
Dear Valued Stakeholders, | in these domains. Notably, our recent |
It is with great pleasure that I present Boubyan's | comprehensive inspection yielded no financial |
fourth Environment, Social and Governance | penalties, and we have expanded our testing |
(ESG) Report, showcasing our persistent | unit to encompass our subsidiaries. |
devotion to environmental sustainability, social | |
responsibility, and robust governance practices. | In our efforts to combat money laundering, |
In line with our ethos of transparency and | we have diligently updated our Anti-Money |
accountability, I am pleased to highlight our | Laundering (AML) risk assessment, enhanced |
significant achievements across these crucial | our AML system, and refined our policies |
areas. | and procedures. This proactive approach |
underscores our commitment to mitigating | |
Governance | financial crime risks and leveraging advanced |
Aligned with Islamic standards, Boubyan's | technology for enhanced AML capabilities. |
governance structure prioritizes transparency, | |
accountability, and ethical conduct. Our | Recognizing the imperative of addressing |
unwavering dedication to compliance and | climate change risks, BLME's risk department |
ethical business practices forms the bedrock | conducted an assessment of climate-related |
of our sustainability initiatives, evident in our | risks in 2023, reflecting our proactive stance |
continuous progress and accomplishments | towards managing financial risk in the portfolio |
resulting from climate change. |
In 2023, we updated our Privacy Policy to align with evolving data protection and privacy standards, demonstrating our commitment to safeguarding customer information. Additionally, we made substantial investments in bolstering our cybersecurity controls to enhance visibility, detection, and response within our infrastructure.
Our dedication to digital innovation is evident in the high adoption rates of our mobile applications, with 73% of our retail customer base and 72% of our corporate customer base utilizing these platforms, thereby enriching their banking experience.
Social
In 2023, our achievements at Boubyan Bank reflected our commitment to organizational excellence and talent management. Notably, we successfully implemented a new approach to job evaluation, marking a significant milestone in realigning strategic organizational goals within job roles. Additionally, we made significant strides in our Kuwaitization efforts, achieving a Kuwaitization percentage of 70% across all levels, as outlined in the plan submitted to the Central Bank of Kuwait (CBK). Of particular note is the remarkable representation of Kuwaitis in our top management, reaching an impressive 89.5%. Furthermore, with 81.3% of our employees benefiting from training initiatives, we prioritize continuous learning and development.
7
Boubyan Group | Sustainability Report | 2023 | Boubyan Group | Sustainability Report | 2023 |
8
Group CEO's Message
At BLME, we continue to empower the female workforce, with women constituting 46% of our workforce. Our ambition to achieve a 50% female workforce by the end of 2025 underscores our dedication to diversity and inclusion. Additionally, we have achieved a 32% representation of female leaders within the organization, with a targeted goal of reaching 35% by the end of 2025.
Our efforts in maintaining customer satisfaction have garnered widespread recognition from external entities. In 2023, our Complaints and Customer Protection Department received notable recognition for attaining the highest complaint resolution percentage among all Kuwaiti banks, Islamic and non-Islamic, according to an external study conducted by Service Hero. Furthermore, Boubyan Bank continued its longstanding success by securing the top position for the 13th consecutive year in the Retail Banks Index, as acknowledged by Service Hero. Moreover, we distinguished ourselves in 2023 as a leader among all Kuwaiti banks, Islamic or conventional, achieving a remarkable 95% in the Customer Satisfaction Index (CSI), while our Net Promoter Score (NPS) reached 73%.
Environment
At Boubyan, we are committed to minimizing our environmental impact and actively participating in remediation efforts. As part of our 2024 ESG strategy, we have set ambitious environmental targets, including a 20% reduction in Greenhouse Gas (GHG) emissions and achieving a 100% reduction in paper waste by year 5. Additionally, our strategy aims to decrease or maintain energy and water consumption, reduce plastic waste by 10%, and achieve 100% electronic waste recycling by year 5.
Furthermore, our installation of 22 electric vehicle (EV) charging stations at our Boubyan headquarters reflects our proactive approach towards sustainable mobility.
Driven by our sense of environmental responsibility, we continue our waste management efforts through various campaigns and projects. We have established dedicated locations for the collection and segregation of recyclables and have initiated paper recycling programs and a paperless project to mitigate paper waste. Our paper recycling endeavors have resulted in GHG emissions savings. Additionally, we launched a Plastic Recycling Project to address the challenges posed by plastic waste and implemented a Devices and Electronics Recycling Project to manage electronic waste effectively.
As we continue our journey towards sustainable growth and positive impact, Boubyan Bank remains steadfast in upholding the highest standards of environmental stewardship, social inclusivity, and corporate governance. We extend our heartfelt gratitude for your ongoing trust and collaboration as we strive towards a brighter future.
9 Boubyan Group | Sustainability Report | 2023
Boubyan Group | Sustainability Report | 2023
10
ESG Highlights
22 | 0.18 |
tCO2e | |
Electric Vehicle | Emissions |
(EV) charging | savings from |
stations with | paper recycling |
dedicated | at Boubyan Bank |
parking slots at | |
Boubyan HQ |
70% 89.5%
175,219.84
tCO2e
Total
Greenhouse Gas
(GHG) Emissions
81.3%
73% | 95% | 84% | 68% | 46% |
NPS score | CSI score | Organizational | Percentage of | Percentage |
Health Index | promotions | of female | ||
(OHI) survey | awarded to | employees at | ||
result | women in BLME | BLME |
86% | 73% | 72% |
Kuwaitization | Kuwaitization | Percentage |
rate across all | rate-top | of employees |
levels at the | management | receiving training |
Bank | levels | out of total |
employees across | ||
Boubyan Bank |
BLME's Employee | Retail app users' | Corporate app |
Engagement | percentage | users' percentage |
Index Result | out of total | out of total |
customer base | customer base |
11
Boubyan Group | Sustainability Report | 2023 | Boubyan Group | Sustainability Report | 2023 |
12
Table of Contents (ToC(
Report Overview | 3 |
Standards and Principles | 3 |
Reporting Boundary | 3 |
Chairman's Message | 4 |
Group CEO's Message | 5 |
ESG Highlights | 7 |
Table of Contents (ToC) | 9 |
1. | About Boubyan | 11 | |
1.1 | Group Profile | 12 | |
1 | 1.2 | Mission and Vision | 30 |
1.3 | Memberships, Associations and Partnerships | 32 | |
1.4 | Awards and Recognition | 32 |
2. | Addressing ESG at Boubyan | 35 | |
2.1 | ESG Strategic Aspirations | 36 | |
2 | 2.2 | Stakeholder Engagement | 38 |
2.3 | Materiality Assessment | 40 | |
3. | Steering Boubyan's ESG | 46 | |
3.1 | Corporate Governance | 47 | |
3.2 | Organizational Structure | 63 | |
3.3 | Compliance and Business Ethics | 67 | |
3 | 3.4 | Proactive Risk Management | 72 |
3.5 | Cybersecurity and Data Privacy | 85 | |
3.6 | Innovative Digital Solutions | 90 | |
3.7 | Customer Experience and Satisfaction | 99 |
4. | Enacting ESG Endeavors | 104 | |
4.1 | Organizational Management and Development | 105 | |
4 | 4.2 | Community Empowerment | 132 |
4.3 | Responsible Procurement and Supply Chain | 164 | |
5. | Measuring ESG Impact | 168 | |
5.1 | Energy Consumption | 170 | |
5 | 5.2 | Greenhouse Gas Emissions | 172 |
5.3 | Waste Management | 178 | |
5.4 | Water Management | 179 |
6. | Appendices | 181 |
6.1.1 | GRI Index | 181 |
6.1.2 | GRI 3-3 | 236 |
6.2 | Boursa Kuwait Index | 242 |
6.3 | Gulf Cooperation Council (GCC) Stock Exchange Index | 246 |
6.4 | Performance Disclosures | 256 |
6.4.1 | Financial Disclosures | 256 |
6.4.2 | ESG Disclosures | 258 |
6.5 | Consumer Banking Products and Services | 279 |
6.5.1 | Consumer Banking Services | 279 |
6.5.2 | Consumer Banking Accounts, Cards,Deposits, and Private Banking | 280 |
6.5.3 Boubyan Corporate Banking and Business Banking Services to Customers
and SMEs | 281 | ||
6.6 | Training Index | 283 | |
6 | 6.6.1 | Boubyan Bank's Trainings Provided Per Department | 283 |
6.6.2 | Boubyan Bank's Trainings Provided to Customer-facing Employees | 284 | |
6.6.3 | BB2 Tech Co Training Courses | 289 | |
6.6.4 | Trainings Provided for Boubyan Takaful Employees | 289 |
13
Boubyan Group | Sustainability Report | 2023 | Boubyan Group | Sustainability Report | 2023 |
14
1
About
Boubyan
Appendices | Measuring ESG | Enacting ESG | Steering | Addressing ESG | About |
Impact | Endeavors | Boubyan's ESG | at Boubyan | Boubyan | |
In this chapter:
- Group Profile
- Mission and Vision
- Memberships, Associations and Partnerships
- Awards and Recognition
15
Boubyan Group | Sustainability Report | 2023 | Boubyan Group | Sustainability Report | 2023 | |
16
Attention: This is an excerpt of the original content. To continue reading it, access the original document here. |
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Boubyan Bank KSCP published this content on 22 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 April 2024 10:01:01 UTC.