Warba Bank K S C P : تقرير الإستدامة لبنك وربة عن عام 2023

Committed Towards A Sustainable Tomorrow

Warba Bank

Sustainability

Report 2023

H.H. Sheikh

Mishal Al-AhmadAl-JaberAl-Sabah

Amir of the State of Kuwait

Warba Bank | Sustainability Report | 2023

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Report Overview

Standards and Principles

We are proud to present Warba Bank's second Sustainability Report, covering the calendar year 2023 (January 1, 2023, report builds upon the foundation laid in our inaugural report, showcasing our continued commitment to Environmental, (ESG) excellence.

Developed in accordance with the Global Reporting Initiative (GRI) Standards 2021, this report highlights our key sustainability future-oriented strategies. We adhere to the GRI's reporting principles of accuracy, balance, clarity, comparability, context, timeliness, and verifiability.

Throughout the development process, we engaged extensively with internal and external stakeholders through digital to-face meetings, and consultation sessions. This collaborative approach ensured we identified the most material topics Bank and our stakeholders.

Reflecting our global commitment to sustainability, we have mapped our initiatives against the United Nations Sustainable Goals (SDGs), and Boursa Kuwait/Capital Markets Authority ESG Guide. This demonstrates our alignment with internationally principles and underscores our dedication to contributing to a positive global impact.

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Reporting Boundary

The report has been prepared for the banking services of Warba Bank (referred to as "Warba" or "the Bank" throughout this operating facilities, branches, and offices. Our Head Office is located in Kuwait. The sustainability performance disclosed the following entities, unless otherwise mentioned.

Warba Bank Entities

Contact Information:

For any queries related to the content of this report please contact: [e-mail]

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Dear valued stakeholders,

I am delighted to share with you the achievements of Warba Bank in 2023, underscoring our commitment to sustainability, excellence, and stakeholder value. This year has been

transformative for us, marked by significant milestones that highlight our dedication to responsible banking practices and customer-centricity.

Financially, we have achieved commendable results. Our revenues reached KD 244,904,000, whilst total Financing reached KD 2,461,093,000,with a substantial portion

dedicated to supporting small and medium-sized enterprises (SMEs), accounting for 1.64% of our total Financing. This demonstrates our steadfast support for SMEs, which

plays a crucial role in driving economic growth and prosperity.

Our focus on customer satisfaction has been unwavering, as reflected by the Customer Satisfaction Index (CSI) of 83%. We have also significantly improved our customer service

efficiency, reducing the average waiting time for customers contacting our customer center to just 32.1 seconds.

Employee development and engagement remain top priorities for us. We achieved an impressive employee retention rate of 87.92% and invested KD 235,000 in providing

training to our employees. Additionally, we spent KD 120,000 on employee events and activities, fostering a positive and inclusive work environment. Furthermore, our efforts in

Kuwaitization have been successful, with Kuwaiti nationals now accounting for 83.49% of our workforce.

Our sustainability efforts continue to be a cornerstone of our operations. Whilst we generated 6,321.16 tCO2e of emissions at an intensity of 8.55 tCO2e per employee, we

recycled 0.45 tCO2e of greenhouse gases, reflecting our commitment to environmental stewardship, and maintaining efforts in using sustainable practices to ease the burden of

Warba's operations on the environment.

Message from the Chairman

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Our sustainability efforts continue to be

a cornerstone of our operations.

In addition to our commitment to digital innovation, Warba Bank places a strong emphasis on data privacy and security. We have maintained our ISO 27001 certification, demonstrating our dedication to maintaining the highest standards of

information security. This certification and further digital innovations reflect our ongoing efforts to protect the data of our customers and stakeholders, whilst giving them accessible digital solutions catered to their needs.

Through various initiatives and partnerships, we strive to be a responsible and impactful corporate anchor for the community. One such initiative is our annual internship program, which aims to develop and prepare local talent for future

roles in the private sector, particularly in banking. Last year, we welcomed 27 interns from eight different universities, providing them with a holistic understanding of the banking sector through classroom training and on-the-job experiences.

Additionally, we actively support individuals with special needs by collaborating with the Public Authority for Disability Affairs to create job opportunities. This commitment is further exemplified by our specially designed branches in each

governorate to cater to customers with disabilities, ensuring advanced facilities and services to meet their diverse needs. Through these initiatives, we aim to create a lasting positive impact on society and contribute to the well-being and

progress of the communities we serve.

As we look ahead, we remain dedicated to upholding integrity, transparency, and sustainability. We are confident that with the continued dedication of our team and the support of our stakeholders, we will achieve even greater success in

the years to come.

Hamad Musaed Al-Sayer

Chairman, Warba Bank

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Dear valued stakeholders,

Warba has since its inception, understood the crucial link between operational efficiency and sustainability. Our commitment to responsible practices extends to how we manage

resources and minimize our environmental impact across every aspect of our business.

In efforts to adopt further environmental responsibility, we are mitigating carbon emissions from employee travel by demonstrating our dedication to offsetting our

footprint. This is complimented by initiatives in our headquarters and branches which now feature comprehensive plastic and paper recycling programs, that will be followed

by a formal Environmental Policy, which is currently in development, and will specifically address energy use, setting clear targets for reducing our energy consumption.

Our commitment to social initiatives and engagement with the local community here in Kuwait is exemplified by our investment in activities, initiatives, and operational

improvements at Warba, ensuring our relationships with stakeholders including investors, employees, customers, and vendors adheres to the values of Warba and such engagements

remain sustainable for the foreseeable future.

Operational governance is crucial for realizing our sustainability goals, and we are committed to ongoing improvement. We are integrating climate risk considerations into

our ESG framework and Internal Capital Adequacy Assessment Process (ICAAP) to manage potential climate-related risks effectively. Additionally, we are developing an ESG scoring

tool to assess risks in our financing activities, aiming to incentivize clients to embrace

Message from the Chief

Executive Officer

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Our commitment to social initiatives within the local

community adheres to Warba's values.

more sustainable practices. The Bank is actively integrating ESG considerations into its operational framework by aligning with international standards and ESG index providers and continues to establish governance mechanisms to oversee ESG- related areas, reflecting its commitment to sustainable practices and responsible corporate governance.

To better serve and support small and medium-sized enterprises (SMEs), Warba has developed innovative product offerings and user-friendly platforms to help facilitate their growth. We recognize the unique needs of SMEs and are committed to simplifying banking transactions for these businesses. One of our key microfinancing initiatives was designed to provide tailored financing solutions to small businesses, emphasizing our broader commitment to supporting SMEs and enhancing

the local business environment. Warba remains steadfast in our commitment to building a sustainable future through responsible and efficient operations.

Shaheen Hamad Al-Ghanem

CEO, Warba Bank

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Table of Contents

				01
Report				Warba at
Overview				a Glance
Standards and Principles		3	1.1 ESG Highlights
Reporting Boundary		4	1.2 An Overview of Warba
Message from the Chairman		5	1.3 Strategic Directions
Message from the Chief				1.4. Products & Services
Executive O•cer		7

		02				03
	Enabling				Governing
	ESG				Transparently
11	2.1 ESG Endeavors at Warba		28	3.1 Corporate Governance
13	2.2 Driving Sustainable				and Structure	42
15		Finance and Investments		30	3.2 ESG and Regulatory
17	2.3 Assessing Impact through				Compliance	50
		Stakeholder Engagement		37	3.3 Ethical Code of Conduct	53
						3.4 ESG Risk Integration	55

04	05	06		07
Nurturing	Innovating	Managing	Appendix
Relationships	Responsibly	Environmental
			Aspects

1. Managing Workplace Performance
2. Employee Pro•le and Retention
3. Capacity Building
4. Employee Engagement and Inclusion
5. Contribution to Local Communities
6. Supply Chain Transparency

5.1 Digital Solutions

595.2 Cybersecurity Measures

5.3 Data Privacy

60

67

69

72

79

80	6.1 Measuring Carbon
92	Footprint
93	6.2 Resources Management

95

96

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