|
Message from Chair
|
|
|
|
|
Over the years, Burgan Bank has successfully established itself as a major financial institution in Kuwait, driven by the values of trust, commitment, excellence and progression with a sustained focus on environmental, social and governance (ESG) excellence. We are endeavoring to establish Burgan as a responsible banking institution that creates shared value for society and safeguards the environment in line with Kuwait’s Vision 2035 and the UN Sustainable Development Goals (SDGs). Burgan Bank has a comprehensive Social Responsibility Program dedicated to promote awareness and build capacity for sustainable development and growth. Burgan Bank’s Sustainability Report for 2021 reflects the progress achieved by the Bank across many metrics, especially on the social agenda front. The bank continues to deliver on it’s human capital development, gender equality and corporate social initiatives. I am thankful for the unwavering support of our Executive Management team and our employees for working relentlessly to deliver the strategic objectives and optimize the opportunities for sustainable and responsible growth
|
|
|
Message from Group CEO
|
|
|
|
|
It is my pleasure to introduce Burgan Bank’s Sustainability Report for the year 2021. Burgan Bank witnessed a determined rebound of its operational performance in 2021 despite the difficulties brought forth by the pandemic and other international disruptions, with the sustainability elements coming through as major enablers of our resilience and indicators of our progress. Burgan Bank’s performance and growth are closely linked to the Environmental, Social and Governance factors that are embedded in the Bank’s Strategic plans. In our long-term transformation journey, we aim to keep pace with the economy and industry changes, and reinvent ourselves in line with the needs and aspirations of our society. Burgan Bank Group’s transformation journey champions sustainability, progress, shareholder value, employee growth and a positive impact on our community and environment. As we pursue our business strategy, we remain confident that by capitalizing on our digital capabilities, human capital, and sustainable practices, we will keep progressing towards achieving our growth and development objectives
|
|
|
Company Overview, Vision and Mission
|
|
|
|
|
Company Overview: Burgan Bank is the youngest conventional Bank and second largest by assets in Kuwait, with a significant focus on the corporate and financial institutions sectors, as well as having a growing retail, and private bank customer base. Burgan Bank has majority owned subsidiaries in the MENAT region supported by one of the largest regional branch networks. which include Gulf Bank Algeria - AGB (Algeria), Bank of Baghdad - BOB (Iraq & Lebanon),Tunis International Bank – TIB (Tunisia), and fully owned Burgan Bank – Turkey, (collectively known as the “Burgan Bank Group”). Furthermore, Burgan Bank has a present in the UAE through its corporate office (“Burgan Financial Services Limited) which had helped the bank to participate in multiple financing opportunities in the UAE. Burgan Bank, a subsidiary of Kuwait Projects Company (KIPCO), is one of the leading financial institutions in the MENAT region. Vision: To be the best-of-class financial service provider in the Kuwaiti market through sustained execution of best-in-class practices, innovation and stakeholder care; Mission: To be your financial partner forming a relationship with our clients based on integrity and trust, and providing innovative banking services that understand and support our client’s different needs at every stage of life; Goal: Continuously aims to deliver maximum value to stakeholders of the Bank with prudent growth practices and in the spirit of the corporate governance framework
|
|
|
ESG a Core Pillar of Strategy
|
Strategy
|
GRI 102: GD Strategy,IFC PS 1: Environmental and Social Risks and Impacts,SASB: Leadership and Governance,SDG 17: Partnerships to achieve the Goal,WEF Governance: Risk and Opportunity Oversight,
|
|
|
A rich natural environment and healthy social environment are the foundation of economic and business development along with improvement of people's lives. At Burgan Bank, we acknowledge our responsibility to manage environmental and social risks, and to proactively identify opportunities that will help secure the financial wellbeing of our customers and Kuwait for generations to come. We are expanding our products and services and strengthening our corporate governance structures in recognition of our responsibility to advocate ethics, responsible financing and investing and contributing to the protection of environment and creation of sustainable communities. The 2030 Agenda for Sustainable Development, adopted by all United Nations Member States in 2015, provides a shared blueprint for peace and prosperity for people and the planet, now and into the future. Burgan Bank is actively working towards contributing to established goals to make the world a better place to live in. The table below depicts how Burgan Bank contributes towards the sustainable goals
|
|
|
ESG Reporting Track Record
|
Metrics
|
GRI 102: GD Reporting Practice,SASB: Leadership and Governance,SDG 17: Partnerships to achieve the Goal,WEF Governance: Risk and Opportunity Oversight,
|
|
A : 3
|
Reports are available from 2019
|
|
|
ESG Materiality Assessment
|
PE: Entry Due Diligence
Ratings Focus
Social Overview
|
Boursa Kuwait E: Oversight,Boursa Kuwait G: Sustainability Reporting,GRI 102: GD Reporting Practice,IFC PS 1: Environmental and Social Risks and Impacts,SASB: Leadership and Governance,SDG 17: Partnerships to achieve the Goal,
|
|
|
Our focus areas are guided by the leading international standards such as Global Reporting Initiative (GRI) Standards and the Sustainability Accounting Standards Board (SASB). They are also influenced by the materiality assessment conducted to identify and prioritise Burgan Bank’s focus areas, risks, and opportunities that are of prime concern to our stakeholders and which can impact the ability to execute our corporate business strategy
|
|
|
Recognised ESG Frameworks
|
Framework
PE: Exit Positioning
|
Boursa Kuwait E: Emissions Intensity,GRI 102: GD Organizational Profile,SASB: Leadership and Governance,SDG 16: Peace Justice and Strong Institutions,WEF Planet: Climate Change,
|
|
|
The Sustainability Report 2021 has been prepared in accordance with the “Global Reporting Initiative (GRI) Standards: Core option” and meets the disclosure requirements of the Sustainability Accounting Standard for Commercial Banks, published by the Sustainability Accounting Standards Board (SASB). Aligned with the United Nations’ Sustainable Development Goals (UNSDGs), the Report considers the priorities of Kuwait Vision 2035 “New Kuwait”, and Boursa Kuwait
|
|
|
Supply Chain ESG Influence
|
Ratings Focus
Process Optimization
Supply Chain
|
Boursa Kuwait G: Supplier Code of Conduct,BRSR Principle 1: Ethical Transparent and Accountable,BRSR Principle 3: Promote Well-being ,CDP: Climate,GRI 102: GD Organizational Profile,SASB: Business Model and Innovation,SDG 08: Decent Work and Economic Growth,WEF Governance: Stakeholder Engagement,
|
|
|
Mitigation of negative social and environmental impacts throughout supply chain is one of the key focus areas for the bank which is primarily achieved through responsible procurement practices. This involves implementing highest ethical standards on all bank’s procurements and supporting local suppliers
|
|
|
Standalone Sustainability / ESG Report
|
Metrics
|
Boursa Kuwait G: Sustainability Reporting,GRI 102: GD Reporting Practice,SASB: Leadership and Governance,SDG 17: Partnerships to achieve the Goal,WEF Governance: Risk and Opportunity Oversight,
|
|
|
ESG reporting since 2019. The Sustainability Report 2021 illustrates Burgan Bank’s operations, products and services, management approach as well as its social, governance and environmental performance from 1st January 2021 to 31st December 2021. It also includes select business and sustainability initiatives implemented in 2021
|
|
|
Gender Pay, Diversity and Inclusions Report
|
Ratings Focus
Diversity and Equality
|
Boursa Kuwait G: Sustainability Reporting,GRI 405: Diversity and Equal Opportunity,IFC PS 2: Labour and Working Conditions,SASB: Leadership and Governance,SDG 05: Gender Equality,WEF People: Dignity and Quality,
|
|
|
Throughout the years, Burgan has exercised best practices that resulted in a diverse workforce where everyone is treated in an equal manner. Our Bank has actively worked towards attaining diversity by engaging in various initiatives to promote women empowerment. As a result, the total number of women in the workforce has increased from 349 to 391 and contributes to 48% of the total workforce (45% in the previous year). Burgan Bank is considered the pioneer in the local industry who offers equal benefits for its female and male employees. This includes all remuneration components such as salary, allowances, tickets, medical insurance, educational assistance etc. Our female employees receive same benefits as male employees, which has been the Bank’s pioneering practice for over a decade
|
|
|
Company Website ESG Links
|
Approach
|
GRI 102: GD Organizational Profile,SASB: Leadership and Governance,SDG 17: Partnerships to achieve the Goal,WEF Governance: Risk and Opportunity Oversight,
|
|
|
Burgan Bank (“the Bank”) is committed to the highest standards of corporate governance and recognizes that good governance is pivotal in helping the business to deliver its strategies whilst generating sustainable shareholder value and meeting its obligations towards shareholders and other stakeholders. As an essential part of this commitment, the Bank operates within a well-defined governance structure and embeds governance principles and practices in its operations based upon the four cornerstones of accountability, transparency, fairness and integrity. The Bank follows the guidelines of the Central Bank of Kuwait, which are based on Basel Committee recommendations on Corporate Governance. A rich natural environment and healthy social environment are the foundation of economic and business development and improving people's lives. At Burgan Bank, we acknowledge our responsibility to manage environmental and social risks and to proactively identify opportunities that will help secure the financial well-being of our customers and Kuwait for generations to come. We are expanding our products and services and strengthening our corporate governance structures in recognition of our responsibility to advocate ethics, responsible financing and investing and contributing to protecting the environment and creating sustainable communities. The 2030 Agenda for Sustainable Development, adopted by all United Nations Member States in 2015, provides a shared blueprint for peace and prosperity for people and the planet, now and into the future. Burgan Bank is actively working towards contributing to established goals to make the world a better place to live in.
|
|
|
Company Website Governance Links
|
Approach
|
GRI 102: GD Organizational Profile,SASB: Leadership and Governance,SDG 16: Peace Justice and Strong Institutions,WEF Governance: Risk and Opportunity Oversight,
|
|
|
Burgan Bank (“the Bank”) is committed to the highest standards of corporate governance and recognizes that good governance is pivotal in helping the business to deliver its strategies whilst generating sustainable shareholder value and meeting its obligations towards shareholders and other stakeholders. As an essential part of this commitment, the Bank operates within a well-defined governance structure and embeds governance principles and practices in its operations based upon the four cornerstones of accountability, transparency, fairness and integrity. The Bank follows the guidelines of the Central Bank of Kuwait, which are based on Basel Committee recommendations on Corporate Governance. The Bank also counts on the community’s support and partnership in advocating excellence in corporate governance. Hence, the Bank appeals to all other market players for joining the Bank in contributing to a continuous enhancement of its quality by practicing good corporate governance not only for the corporate growth, but also for the prosperity of the State of Kuwait. The provisions under this CG manual shall apply to the Board of Directors, the Executive Management, employees and the service providers of the Bank
|
|
|
Fouad Douglas
|
|
|
|
|
Mr. Douglas has been Board member of Burgan Bank since 2019 and has over 30+ years of diversified experience in the banking, audit firms, and investment sectors. Mr. Douglas is currently a Board Audit Committee member at Abu Dhabi Health Services Co – UAE, an Independent audit committee member of Abu Dhabi National Exhibition Services and was a Board member at Burgan Bank Turkey. Prior to joining Burgan Bank, Mr. Douglas was Financial Services Leader at Delloitte & Touche - Toronto Office, and a Partner at Arthur Andersen- Kuwait, Ernst & Young – Kuwait and Price Waterhouse Coopers – Kuwait. He also served on the Board of Ernst & Young – Kuwait and Price Waterhouse Coopers – Kuwait. Mr. Douglas holds a Bachelors of Business Administration, 1980, and a Masters of Business Administration,1982 from the American University of Beirut, Lebanon. Mr. Douglas is a Certified Public Accountant (New York, 1988) and a Chartered Accountant (Canada, 1992). Mr. Douglas is an Independent Board member, Chairman of the BAC Committee and a member of the BRC Committee of Burgan Bank
|
|
|
Masoud M.J. Hayat
|
|
|
|
|
Mr. Hayat has been appointed as Group Chief Executive Officer of Burgan Bank since April 2019 in addition to his capacity as Vice Chairman of the Board and has been Board Member of Burgan since 2013. Mr. Hayat brings to the Board his extensive experience of 30+ years in banking, commercial, investment, and management industries at a local and regional level. Mr. Masoud has attended various professional local and international courses, amongst which is in Leadership & Innovation in Public & Private Sectors at Harvard University in 2004 and a 3 months program in Management and Finance at Wharton Business School – University of Pennsylvania – Philadelphia – USA. He started his career in Al-Ahli Bank of Kuwait in 1974 where he worked in various fields such as Operations, Local and International Credit until he reached the post of Deputy Chief General Manager and Acting CEO in 1992, and advisor to the Board of Directors until 1996. Mr. Hayat has held key positions and Board memberships in the KIPCO Group since 1997 in banking, telecommunications, investments, and services, including his role as Chief Executive Officer - Banking (2010-2019). Mr. Hayat is a member of the BCIC and BCGC Committees of Burgan Bank
|
|
|
Faisal M. Al Radwan
|
|
|
|
|
Mr. Al Radwan has been Board member of Burgan Bank since 2010 and has over 30+ years of diversified experience in the banking, real estate, and investment sectors. Mr. Al Radwan was the Vice Chairman at Burgan Bank Turkey, and a Board member at Gulf Bank Algeria. Prior to joining Burgan Bank, Mr. Al Radwan was Deputy General Manager and Deputy Chief Executive Officer at the National Bank of Kuwait respectively. He also served on the Board of Bank of Bahrain and Kuwait and Bank of Oman Bahrain. Mr. AL-Radwan holds a Bachelor’s degree in Commerce and Business Administration, 1970 from Cairo University, Egypt. Mr. Al Radwan is an independent Board member, the Chairman of the BNRC and the chairman of BCIC committees and a member of the BCGC committee of Burgan Bank
|
|
|
H.E AbdulKareem El-Kabariti
|
|
|
|
|
Mr. Kabariti has been Board member of Burgan Bank since 2004 and has over 30+ years of diversified experience in the banking, Finance, investment and political sectors. Mr. Kabariti is currently the Chairman of Algeria Gulf Bank - Algeria, a Board member of FIMBank – Malta, a Board member at Burgan Bank - Turkey and a Board member at Jordan dairy Company - Jordan. Mr. Kabariti was the Chairman of Jordan Kuwait Bank - Jordan for 24 years. Prior to joining Burgan Bank, Mr. Kabariti was a member of the Jordanian Senate - Head of the Economics and Finance Committee Education (2005- 2007), Member of the Jordanian Senate First Deputy to The Speaker (2000-2002), Chief of the Royal Court (1999-2000), Prime Minister, Minister of Foreign Affairs and Minister of Defense (1996-1997), Minister of Foreign Affairs (1995-1996), Head of the Economics and Finance Committee (1993-1995), Member of the Jordanian Parliament (1989-1993) and (1993-1997), Minister of Labor (1991-1993), and Minister of Tourism (1989-1991). Mr. Kabariti holds a Bachelor degree in Business Administration with Honors from St. Edwards University- Austin, Texas, USA, 1973. Mr. Kabariti is a Honorary Doctor of Business Administration (Hon DBA), from Coventry University – United Kingdom, 2015 Mr. Kabariti is a member of the BAC Committee of Burgan Bank
|
|
|
Mazen Issam Hawwa
|
|
|
|
|
Mr. Hawwa is a senior executive with over 25 years of multi-facet experience in various industries including real estate and financial services. He has been serving as URC’s Vice-Chairman and Group Chief Executive Officer since 2020 and sits on the board of its several group companies. Mr. Hawwa joined KIPCO Group as part of the finance and accounts team in 2001 and was last the Deputy Group Chief Operating Officer leading finance and operations. He also serves on the board of several KIPCO operating subsidiaries providing thought leadership, advice on strategic directives, financial planning, and governance. Mr. Hawwa holds an Executive MBA from HEC Paris and is a graduate of the Lebanese American University. He has attended several executive education programs, including the General Management Program at Harvard Business School, and holds professional qualifications from prominent US-based institutions. Mr. Hawwa is a member of the BAC committee, BRC Committee of Burgan Bank and BNRC committee
|
|
|
Amani Khalid Bouresli
|
|
|
|
|
Dr. Bouresli, formerly the Kuwait Minister of Commerce and the Minister of Planning and Development Affairs, has more than 30 years of experience in training, consulting and banking. Dr. Bouresli is the Chairperson of the IB Capital Board of Directors, and a member of the Ithmaar Bank and Faisal Islamic Bank of Egypt Board of Directors. She is currently a Professor of Finance at Kuwait University’s College of Business Administration, and her research interests include Capital Markets Regulations, Corporate Governance, Dividends Payout Policies, and Strategic Planning. Dr. Bouresli has served as a Member at the Board of Trustees at Kuwait Transparency Association for the Anti-Corruption Award for the Public Sector in Kuwait. She earned the 2018 Kuwaiti Economic Researcher Award sponsored by the Central Bank of Kuwait. Also, she earned the Middle East Excellence Award in business administration and economics for her contributions toward the development of the capital market structure and regulation in Kuwait. She is the founder of the Governance Excellency Prize. Prior to her ministerial appointments, Dr. Bouresli was the Founder and Chairperson of Capital Standards Rating Co., the first independent credit rating agency in Kuwait, from 2009 to 2011; a Board Member at Burgan Bank, Kuwait, from 2010 to 2011; and Head of the Capital Market Authority Project from 2006 to 2007. Dr. Bouresli, who has many published articles and work in refereed journals as well as in specialised books and magazines, began her banking career at the National Bank of Kuwait in 1987, and her teaching career at Kuwait University in 1988. Dr. Bouresli holds a BC in Finance and Banking from Kuwait University, Kuwait; an MBA from Seattle University, USA; and a PhD in Corporate Finance from Southern Illinois University at Carbondale, USA. Dr. Bouresli is an Independent Board member, Chairman of the BRC Committee and a member of the BNRC Committee of Burgan Bank
|
|
|
Abdullah Nasser Sabah Al-Ahmad Al-Sabah
|
|
|
|
|
Sheikh Abdullah Nasser Sabah Al Ahmad Al Sabah is the Vice Chairman of KAMCO Investment Co. KSC and is a Board Member at Kuwait Projects Holding and Board member at United Gulf Bank- Bahrain. Sheikh Abdullah Nasser Sabah Al Ahmad Al Sabah is an Alumni of the Royal Military Academy, Sandhurst, UK and has a BSc in Business Administration, New York Institute of Technology, USA. Sheikh Abdullah Nasser Sabah Al Ahmad Al Sabah is the Chairman of the BCGC Committee of Burgan Bank
|
|
|
Sager Abdullah Al-Sharhan
|
|
|
|
|
Mr. Al Sharhan is the Chairman & CEO of Al Mutatawera Services Holding Company and has over 30+ years of diversified experience in the banking, industrial experience within Oil & Gas, Education Management industries, and investment sectors. Mr. Al Sharhan is a Board member at Private Universities Union Secretary, Australian University Industrial Advisory Board, Saudi Makamin and Al Mutatawera Services Holding Company. He was the Chairman and Managing Director of Al Dorra Petroleum Company and also Managing director of the Metal and Recycling Company. Mr. Al Sharhan holds a degree in Mechanical Engineering, from the University of Kuwait, College of Engineering in 1989. Mr. Al Sharhan is an Independent Board member, and a member of the BCIC Committee of Burgan Bank.
|
|
|
Michel A. Accad
|
|
|
|
|
Mr. Accad is the Executive General Manager (Group Chief Executive Officer) of BANKMED, and has over 30+ years of diversified experience in the banking and investment sectors. He was the Chief Executive Officer of Ahli Bank of Kuwait from 2014 through 2019. From 2009 to 2014 he served as CEO for Gulf Bank of Kuwait, and oversaw its turnaround following the 2008 crisis. Between 2006 and 2009, he was the Assistant CEO for Arab Bank PLC, responsible for all banking businesses globally. He is a 27-year veteran of Citigroup, which he joined in 1979. His last post was as Managing Director and CEO for the Middle East and North Africa Division; before that, he was the Country Head for Egypt and Regional Head for North & West Africa; and from the mid-1980s to 2000, he held various CEO and Country Head positions, including for Nigeria, which was then the largest Citibank operation in Africa. Mr. Accad is a Board member of BankMed (2019-2020); Chairman of BankMed Suisse and T-Bank (from 2020) and was a Board member of ABK-Egypt and Al-Ahli Capital Investment Company (2014-2020) and was Board member of Europe Arab Bank (2006-2009); Arab Tunisian Bank (2006-2007, and its Chairman in 2008); and Arab Invest (2006-2008). Mr. Accad holds a Master’s in Business Administration from the University of Texas at Austin. Mr. Accad is an Independent Board member, and a member of the BRC Committee of Burgan Bank
|
|
|
Abdullah Mohammed AlSharekh
|
|
|
|
|
Mr. Abdullah Mohammed AlSharekh Board member Mr. AlSharekh currently holds the position of Managing Director of Markets & Investment Banking at Kamco Investment Co. KSC, in addition to the position of Vice Chairman at First Securities Brokerage Company KSC (Oula Wasata), both since 2020. Mr. AlSharekh has extensive and diverse experience across all core areas from treasury and corporate banking to investment banking and asset management. Prior to joining Kamco Invest, AlSharekh led the Economic & Investment team of the Hareer and Boubyan Development Agency and was Managing Director at Sharq Capital where he led investment activity across asset classes. Prior to that, he held several executive positions with key international and regional financial institutions including Executive Director at the Securities Division of Goldman Sachs, Executive Manager of Corporate Banking at the National Bank of Kuwait, in addition to Investment Banking at NBK Capital. He also worked for the Fixed Income Trading Group of Brown Brothers Harriman on Wall Street and the M&A Execution Team of HSBC in London. Mr. AlSharekh holds a dual BA in Economics and Public & Private Sector Organizations from Brown University, USA and a dual MBA in Finance and Entrepreneurial Management from The Wharton School, University of Pennsylvania, USA. Mr. AlSharekh is a member of the BAC Committee and BCGC Committee of Burgan Bank
|
|
|
Faisal Mansour Sarkhou
|
|
|
|
|
Mr. Sarkhou is the Chief Executive Officer of Kamco Invest since 2014 and has led the company to become one of the key players in the regional financial services sector. He enjoys a wealth of experience in investment services namely investment banking and asset management. He joined the Company in 2000 and has held several managerial positions including head of Corporate Finance and head of Financial Services & Investments, responsible for advising and executing mergers and acquisitions, underwritings, private placements, debt issuances, restructuring transactions, and private equity. Earlier in his career he was a member of the Corporate Finance Team at KPMG in Kuwait. He sits on the board of several reputable companies, member of advisory boards and executive committees and a prominent speaker in various investment forums. Mr. Sarkhou holds a BSc Economics degree with honors from the University of Birmingham, UK and an EMBA with distinction from HEC Paris, France. Mr. Sarkhou is a member of the BNRC Committee and BCIC Committee of Burgan Bank
|
|
|
Environment Strategy in Place
|
Climate
Environment
Strategy
|
Boursa Kuwait E: Oversight,GRI 307: Environmental Compliance,IFC PS 1: Environmental and Social Risks and Impacts,IIRF: Intellectual Capital,SASB: Environment,SDG 11: Sustainable Cities and Communities,SDG 13: Climate Action,TCFD: Strategy,UNGC Principle 07 Environment ,WEF Planet: Climate Change,
|
|
|
Addressing climate change and the greenhouse gas (GHG) emissions requires urgent action and long-term commitments. We aim to minimise our environmental footprint by transitioning to resource neutral operations, managing resource consumption responsibly and by improving energy efficiency. In line with our vision to be a responsible banking institution that supports building better future for stakeholders, people, and communities, we have established our ESG Framework which specifies our four key ESG principles: Burgan Bank strives to promote environmentally sustainable products and services that support customers at every stage of their life, embedding responsible financing and investing in its practices, Burgan Bank considers social responsibility as an important pillar of the long-term sustainability for the bank and the community. The bank believes in giving back to community at institutional and employee level, with time, effort, financial contribution, and financial literacy outreach to all strata of society, Burgan Bank is committed to uphold the highest standards of governance, consistent with regulatory expectations, leading practices, and evolving strategy and risk appetite for ethical, transparent, and compliant business, Burgan Bank values its commitment to environment and aims at reducing environmental footprint of its operations and credit portfolio. The Bank aim for energy efficient initiatives to power its business with renewable energy, lower emissions and reduced waste, among other efforts
|
|
|
Environmental Reporting
|
Environment
Ratings Focus
Strategy
|
CDP: Climate,GRI 102: GD Reporting Practice,IIRF: Natural Capital,SASB: Environment,SDG 12: Responsible Consumption and Production,WEF Planet: Nature Loss,
|
|
|
Environmental reporting has been done in the sustainability report 2021 on energy and waste
|
|
|
Sustainable Finance Implementation and Targets
|
Financial Institutions
|
Boursa Kuwait E: Oversight,GRI 102: GD Strategy,IFC PS 3: Resource Efficiency and Pollution Prevention,IIRF: Manufactured Capital,SASB: Business Model and Innovation,SDG 09: Industry Innovation and Infrastructure,WEF Governance: Risk and Opportunity Oversight,
|
|
|
Burgan Bank has recognised and established four pillars to support and facilitate all future ESG initiatives: Endorsing ethical practices and transparency, Financing responsibly, Positive community impact, Minimising environmental impact We have identified the key areas of focus to set a pathway to abide by our four pillars and achieve and promote a long-term sustainable growth. These pillars are also linked with the UN SDGs
|
|
|
Providing Sustainability Related Loans
|
Financial Institutions
|
Boursa Kuwait E: Operations,GRI 102: GD Strategy,IFC PS 3: Resource Efficiency and Pollution Prevention,IIRF: Manufactured Capital,SASB: Business Model and Innovation,SDG 09: Industry Innovation and Infrastructure,WEF Governance: Risk and Opportunity Oversight,
|
|
|
We incorporated high-level guidance for all lending executives on our preference to responsible lending and emphasize on sustainability as part of Burgan Bank Credit Policy. This is a first-time exercise in the bank and will form cornerstone for further developments in this area. Key Projects Under Responsible Lending in 2021: Development, installation, and maintenance of solar panels; Recycling the drilling and oil exploration waste and transforming it to diesel, water, and other waste; Development of West Abdullah AlMubarak area and installation of solar panels
|
|
|
Sustainability Criteria in Risk Management Process
|
Financial Institutions
|
Boursa Kuwait E: Oversight,GRI 102: GD Strategy,IFC PS 1: Environmental and Social Risks and Impacts,IIRF: Financial Capital,SASB: Leadership and Governance,SDG 09: Industry Innovation and Infrastructure,WEF Governance: Risk and Opportunity Oversight,
|
|
|
Burgan Bank’s internal process in evaluating and selecting projects and companies will be overseen by its Sustainability Finance Working Group which will comprise of members from the Group Investment Banking & Treasury, Group Risk, Financial Accounting & Control and Corporate Communications departments. The Bank will adopt an environment and social risk management process for the credit/investment analysis of borrowing entities and investee companies and investment decision making processes, which are applicable to all allocation decisions made under the Framework. Sustainalytics considers the project selection process to be in line with market practice
|
|
|
Material Usage Initiatives
|
Climate
Environment
Resource Efficiency
|
Boursa Kuwait E: Operations,BRSR Principle 2: Sustainable and Safe,GRI 301: Materials,IFC PS 1: Environmental and Social Risks and Impacts,IIRF: Manufactured Capital,SASB: Business Model and Innovation,SDG 12: Responsible Consumption and Production,UNGC Principle 08 Environment ,WEF Planet: Climate Change,
|
|
|
Burgan Bank is fully committed to play an active role in reducing the consumption of natural resources in business operations and minimizing negative impacts on our environment
|
|
|
Protecting Land, Natural Resources and Biodiversity
|
Climate
Environment
Ratings Focus
Resource Efficiency
|
Boursa Kuwait E: Operations,BRSR Principle 6: Protect and Restore Environment ,CDP: Forests,GRI 413: Local Communities,IFC PS 6: Biodiversity and Living Natural Resources,IIRF: Natural Capital,SASB: Environment,SDG 11: Sustainable Cities and Communities,UNGC Principle 08 Environment ,WEF Planet: Resource Availability,
|
|
|
Burgan Bank organized a beach clean-up drive under the theme “Driven by you… Motivated by Sustainability” at the Al-Salam beach in Shuwaikh in collaboration with ‘Mw6iny’ and under the support of, Green Hands Environmental Team and Kuwait Dive Team. Advocating for the conservation and restoration of Kuwait’s marine environment, Burgan Bank top management, staff and their kids including other volunteers participated in this initiative. Driven by the belief that efforts to preserve the country’s ecosystem ensure the longevity of cultural heritage for future generations, the event also helped to raise awareness of the health dangers of pollutants, plastic waste and hazardous substances if neglected. As part of its mission to rectify unhealthy practices and inspire an environmentally conscious community, Burgan Bank adopted the national campaign in cooperation with “Saveq8c” team to protect and clean Kuwait's beaches. The active team of “Saveq8c” has made waves in a short span of time by engaging the community through activities and strong messages and social media campaign focusing on the importance of the preservation of Kuwait’s pristine beaches and marine life. This grassroots activity motivated people from all parts of the community, ranging from the youth, adults and children who participated in the waste collection from various beaches and shared it with the team
|
|
|
Energy Efficiency Initiatives
|
Climate
Energy
Environment
Process Optimization
|
Boursa Kuwait E: Energy Usage,BRSR Principle 6: Protect and Restore Environment ,CDP: Climate,GRI 302: Energy,IFC PS 3: Resource Efficiency and Pollution Prevention,IIRF: Manufactured Capital,SASB: Business Model and Innovation,SDG 07: Affordable and Clean Energy,TCFD: Metrics and Targets,UNGC Principle 08 Environment ,WEF Planet: Climate Change,
|
|
|
Our direct and indirect energy consumption consists primarily of high-speed diesel and purchased electricity respectively. By emphasizing on optimizing our energy use throughout our operations, we have been able to increase the energy efficiency of our operations. During 2021, we saved 400 GJ (approx.) by usage of LED lights and minimizing the runtime of lights
|
|
|
Energy Consumption and Savings
|
Climate
Energy
Environment
Metrics
PE: Operating Performance
Process Optimization
Ratings Focus
|
Boursa Kuwait E: Energy Usage,BRSR Principle 6: Protect and Restore Environment ,CDP: Climate,GRI 302: Energy,IFC PS 3: Resource Efficiency and Pollution Prevention,IIRF: Manufactured Capital,SASB: Business Model and Innovation,SDG 07: Affordable and Clean Energy,TCFD: Metrics and Targets,WEF Planet: Climate Change,
|
|
A : 30811
|
Total energy consumption: 30,811.54 (Gj); Indirect energy consumption: 30,788.71 (Gj); Specific energy consumption : 37.62 (GJ / Employee)
|
|
|
Amount of Waste Generated
|
Climate
Environment
Metrics
Process Outputs
Ratings Focus
Waste Management
|
Boursa Kuwait E: Operations,BRSR Principle 6: Protect and Restore Environment ,CDP: Climate,GRI 306: Effluents and Waste,IIRF: Natural Capital,SASB: Environment,SDG 12: Responsible Consumption and Production,TCFD: Metrics and Targets,WEF Planet: Solid Waste,
|
|
|
Total waste generated: 158.4 (Non-Hazardous Waste); Recycling: 28.8
|
|
|
Waste Reduction Initiatives
|
Climate
Environment
Process Outputs
Waste Management
|
Boursa Kuwait E: Water Usage,BRSR Principle 6: Protect and Restore Environment ,GRI 306: Effluents and Waste,IFC PS 1: Environmental and Social Risks and Impacts,IIRF: Manufactured Capital,SASB: Business Model and Innovation,SDG 12: Responsible Consumption and Production,WEF Planet: Solid Waste,
|
|
|
Effective management of waste is important to minimize the Bank’s adverse impacts on the environment and the Bank has established waste management guidelines that are applied throughout the Bank. Hazardous wastes are not generated by the Bank due to its nature of operations. The electronic waste generated at our facilities is recycled through collection and sale to authorized dealers in the local market. Municipal waste includes municipal and paper waste, which is collected by the municipality and disposed off into municipal landfills. The Bank is also in the process of identifying several initiatives to reduce waste generation
|
|
|
Recycling Waste
|
Climate
Environment
Process Outputs
Waste Management
|
Boursa Kuwait E: Operations,BRSR Principle 2: Sustainable and Safe,BRSR Principle 6: Protect and Restore Environment ,GRI 306: Effluents and Waste,IIRF: Manufactured Capital,SASB: Business Model and Innovation,SDG 12: Responsible Consumption and Production,WEF Planet: Solid Waste,
|
|
|
We segregate our waste in electronic and municipal waste, and we ensure that no hazardous waste is generated at any of our facilities. The electronic waste generated is recycled through collection and sale to authorised dealers in the local market. Following Burgan Bank’s support in the transportation of 120,000 tonnes of tyres from Rhya to Salmi, the Environment Public Authority will provide the bank with a 10,000 square-metre industrial plot with a five-year usufruct permit to construct a tyre-recycling plant. The premises would produce different products from the recycled rubber and the bank will be able to sell and export processed products or even the raw material to other countries
|
|
|
Social Strategy in Place
|
Strategy
|
GRI 419: Socioeconomic Compliance,IFC PS 1: Environmental and Social Risks and Impacts,IIRF: Human Capital,SASB: Business Model and Innovation,SDG 11: Sustainable Cities and Communities,WEF: Employment and Wealth Generation,
|
|
|
Our ability to continue delivering for our stakeholders is dependent on our ability to attract, develop and retain dedicated and talented people, who are inspired by our vision. Our prime focus in these exceptional times has been on employee health and well-being, while deploying talent dynamically to build the organisation for the future, as well as reskilling and upskilling our employees and constructively developing a learning culture. Burgan Bank launched “Burgani”, its HR mobile application as part of its strategic digital transformation initiative to automate HR processes and boost employee engagement. It will help keep employees connected, well informed and autonomous. Employees have access to focused online learning opportunities through the dedicated Burgan Learning Digital platform. The portal offers employees a wide variety of learning solutions covering both soft and technical skills through modern technological practices and operations, as part of the bank’s ongoing digital transformation strategy. Our Learning and Development strategy is to build a healthy employee value proposition with robust investment in people. Responding to the dynamic changes in the way we do business in a post pandemic era, Burgan Bank has taken key proactive steps, based on strategy needs and industry trends, to deploy talent dynamically and to build future workforces, including reskilling (training an employee for a new job), upskilling (training an employee on additional skills in an existing job), and redeployment (assigning an employee to a new task). In 2021, we conducted several surveys covering organisational culture, risk culture, training feedback and employee health. Response rates across surveys were over 90%, demonstrating an engaged and communicative workforce, and feedback has helped to continually adapt to support the needs of our employees. We have also built channels through community clubs, Ro2ya programme, gamification on our L&D portal, reward and recognition programme, and digital bulletin boards to drive success for employees and ensure the bank is providing a healthy work environment
|
|
|
Communication of Labour Policy
|
Ratings Focus
Social Overview
Policies
|
GRI 402: Labour and Management Relations,IIRF: Human Capital,SASB: Human Capital,SDG 11: Sustainable Cities and Communities,UNGC Human Rights: Principle 1,WEF: Employment and Wealth Generation,
|
|
|
Burgan Bank launched “Burgani”, its HR mobile application as part of its strategic digital transformation initiative to automate HR processes and boost employee engagement. The app is a new milestone that translates the bank’s vision to maximise its stakeholder value by leveraging operational and technological capabilities, and support internal business functions. The app also aims to improve HR capabilities, improve communication and collaboration within the workforce – and is a great enabler to improve employee productivity and efficiency. It will help keep employees connected, well informed and autonomous
|
|
|
Supplier Responsibility Initiatives
|
Ratings Focus
Social Overview
Suppliers
Supply Chain
|
BRSR Principle 1: Ethical Transparent and Accountable,GRI 308: Supplier Environmental Assessment,IFC PS 1: Environmental and Social Risks and Impacts,IIRF: Human Capital,SASB: Social Capital,SDG 11: Sustainable Cities and Communities,WEF Governance: Stakeholder Engagement,
|
|
|
Mitigation of negative social and environmental impacts throughout the supply chain is one of the key focus areas for the bank which is primarily achieved through following responsible procurement practices. This involves implementing the highest ethical standards on all bank procurements & supporting local suppliers
|
|
|
Customer Responsibility Initiatives
|
Ratings Focus
Customers
Social Overview
|
BRSR Principle 9: Provide Value to Consumers,CDP: Climate,GRI 417: Marketing and Labelling,IFC PS 1: Environmental and Social Risks and Impacts,IIRF: Human Capital,SASB: Social Capital,SDG 11: Sustainable Cities and Communities,WEF Prosperity: Innovation of Products and Services,
|
|
|
Our operating model is designed in such a way that our core operations are customer-centric to provide them with tailor-made solutions. We are deeply engrossed in giving our customers the experience they deserve and as a result, we have launched multiple customer-centric programs to elevate the experience of our customers. Burgan Bank launched an all-encompassing loyalty program named “Burgan Rewards”. The new loyalty program rewards all Burgan Bank customers for their overall banking transactions and card spending, providing them with a variety of exclusive redemption options and benefits. We have introduced a new feature of Voice Biometric authentication feature to facilitate seamless phone banking service to our customers. We have revamped our prepaid portal with an integrated omnichannel experience and features. Tariff sheets and other details like customer rights and responsibilities were converted from Paper to digital screens at our branches for a better view. As part of a collaborative digital strategy, we have accelerated and made solid progress on the Group’s digitalisation, modernising and simplifying our IT architecture. Our Digital Team was awarded several prestigious digital awards by Global Finance for the year 2021. We maintained ~90% customer satisfaction rate along with 4.5-star app ratings on both Apple Store and Google Play store
|
|
|
Product/Service Safety and Quality Metrics
|
Social Overview
Product Development
|
BRSR Principle 9: Provide Value to Consumers,GRI 417: Marketing and Labelling,IFC PS 4: Community Health Safety and Security,IIRF: Human Capital,SASB: Social Capital,SDG 12: Responsible Consumption and Production,WEF Governance: Stakeholder Engagement,
|
|
|
The Bank has continuously strived to improve its performance over the years through maintaining cautious growth in the Bank's key markets, managing franchises by enhancing operating efficiencies and returns, focusing on strong risk management across the group and optimizing capital usage. The Bank was re-certified with the prestigious ISO 9001:2015, making it one of the few banks in the GCC and Kuwait to receive such certification for the fifth consecutive time. The bank has 3 ISO certifications highlighting the bank’s high standards of quality and security. The Central Bank of Kuwait continues its efforts to protect the banking sector customers by enhancing the concept of transparency and providing disclosure in financial and banking transactions. The aim is to create a balanced environment that makes it convenient to safeguard customer rights while protecting the banking sector, guided by the best world practices. Bank has a separate section on Banking Awarness on their website, which includes: Customer Protection guide, Customer Rights & Responsibilities, Client Complaint and Protection Unit, Frequemtly asked Questions, Security alerts, Tips and Guideline
|
|
|
Diversity and Inclusion
|
Ratings Focus
Diversity and Equality
Metrics
|
Boursa Kuwait S: Gender Diversity,GRI 413: Local Communities,IFC PS 2: Labour and Working Conditions,IIRF: Human Capital,SASB: Human Capital,SDG 10: Reduced Inequality,UNGC Principle 06 Labour ,WEF People: Dignity and Quality,
|
|
A : 58
B : 48
C : 819
|
Throughout the years, Burgan has exercised best practices that resulted in a diverse workforce where everyone is treated in an equal manner. Our Bank has actively worked towards attaining diversity by engaging in various initiatives to promote women empowerment. As a result, the total number of women in the workforce has increased from 349 to 391 and contributes to 48% of the total workforce (45% in the previous year)
|
|
|
Board of Directors Gender Composition
|
Board of Directors
Diversity and Equality
Metrics
PE: Operating Performance
Ratings Focus
|
Boursa Kuwait S: Gender Diversity,GRI 405: Diversity and Equal Opportunity,IIRF: Human Capital,SASB: Human Capital,SDG 10: Reduced Inequality,UNGC Principle 06 Labour ,WEF Governance: Quality of Governing Body,
|
|
A : 1
B : 11
C : 9
|
The Board in its efforts to permeate the essence of diversity throughout the Bank has taken a key step by the addition of a female member to the Board
|
|
|
Senior Management Gender Composition
|
Diversity and Equality
Metrics
PE: Operating Performance
Ratings Focus
|
Boursa Kuwait S: Gender Diversity,GRI 405: Diversity and Equal Opportunity,IIRF: Human Capital,SASB: Human Capital,SDG 05: Gender Equality,UNGC Principle 06 Labour ,WEF: Employment and Wealth Generation,
|
|
A : 4
B : 21
C : 19.04
|
4 out of the 21 members of senior management are female
|
|
|
Workforce Gender Composition
|
Diversity and Equality
Metrics
PE: Operating Performance
Ratings Focus
|
Boursa Kuwait S: Gender Diversity,GRI 405: Diversity and Equal Opportunity,IIRF: Human Capital,SASB: Human Capital,SDG 05: Gender Equality,UNGC Principle 06 Labour ,WEF People: Skills for the Future,
|
|
A : 391
B : 819
C : 48
|
Throughout the years, Burgan has exercised best practices that resulted in a diverse workforce where everyone is treated in an equal manner. Our Bank has actively worked towards attaining diversity by engaging in various initiatives to promote women empowerment. As a result, the total number of women in the workforce has increased from 349 to 391 and contributes to 48% of the total workforce (45% in the previous year)
|
|
|
Gender and Diversity Targets and Initiatives
|
Diversity and Equality
|
Boursa Kuwait S: Gender Diversity,GRI 405: Diversity and Equal Opportunity,IFC PS 2: Labour and Working Conditions,SASB: Human Capital,SDG 10: Reduced Inequality,UNGC Principle 06 Labour ,WEF People: Dignity and Quality,
|
|
|
The Board in its efforts to permeate the essence of diversity throughout the Bank has taken a key step by the addition of a female member to the Board. Our Bank has actively worked towards attaining diversity by engaging in various initiatives to promote women empowerment. As a result, the total number of women in the workforce has increased from 349 to 391 and contributes to 48% of the total workforce (45% in the previous year). 58% of new recruits are women
|
|
|
Emergency Procedure Guidelines
|
Health and Safety
|
BRSR Principle 6: Protect and Restore Environment ,GRI 403: Occupational Health and Safety,IFC PS 2: Labour and Working Conditions,IIRF: Human Capital,SASB: Human Capital,SDG 03: Good Health and Wellbeing,WEF People: Health and Well Being,
|
|
|
In order to test the robustness and strengthen our BCM infrastructure, we have supported and coordinated with the General Security and Premises & Maintenance teams on the Emergency and Safety preparedness for the new Head Office building in raising internal awareness on safety procedures
|
|
|
Staff Turnover Rate
|
Ratings Focus
Metrics
Operating Ratios
Social Overview
|
Boursa Kuwait S: Employee Turnover,BRSR Principle 3: Promote Well-being ,GRI 412: Human Rights Assessment,IFC PS 2: Labour and Working Conditions,IIRF: Human Capital,SASB: Human Capital,SDG 08: Decent Work and Economic Growth,WEF: Employment and Wealth Generation,
|
|
A : 13.5
|
The employee turnover rate for the year 2021 was 13.5%
|
|
|
Learning Hours
|
Metrics
Training
|
|
|
A : 32095
B : 19458
|
Bank wide, in a bid to ensure the growth of employees, we provided all of our employees with relevant trainings and has surpassed the total training hours of the previous year by 65%
|
|
|
Health and Safety Initiatives
|
Ratings Focus
Health and Safety
Metrics
Operating Ratios
|
Boursa Kuwait S: Global Health and Safety,GRI 403: Occupational Health and Safety,IFC PS 1: Environmental and Social Risks and Impacts,IIRF: Human Capital,SASB: Human Capital,SDG 03: Good Health and Wellbeing,WEF People: Health and Well Being,
|
|
|
Human Resources and Development Group through its Learning and Talent Development team delivered multiple virtual awareness sessions to Burgan employees as part of its Wellbeing and Welfare program where the goal was to help employees achieve their full potential, cope with daily stress, and make the work environment a space that promotes employee wellbeing, productivity and growth. Over 210 employees participated in this initiative. Burgan Bank launched a wellness initiative for the benefits of its employees, organized by the Human Resources Department and in partnership with Kuwait Hospital, to promote the health and safety of our employees who will benefit from a comprehensive range of free preventive health checkups, which will allow them to diagnose any potential health problem and prevent chronic diseases. 45% of our employees registered for the free checkups. Burgan Bank also conducted an internal vaccination campaign in cooperation with the Ministry of Health to encourage employees taking Covid-19 vaccine where 85% of registered employees got vaccinated. Burgan Bank organized an awareness seminar for its employees about breast cancer in cooperation with Kuwait Hospital with the aim of contributing to raising female employees’ awareness of the importance of early detection of breast cancer through periodic examination. Female employees were offered 55% discount for Mammogram test. With a focus to make the lives of our employees easier, we have launched Burgani Mobile App, which offers many features such as employee self-service, onboarding section for new joiners, internal recruitment opportunities, staff recognition tool, staff offers, announcements and various other features
|
|
|
Labour Management Initiatives
|
Workforce Responsibility
|
GRI 402: Labour and Management Relations,IFC PS 2: Labour and Working Conditions,IIRF: Human Capital,SASB: Human Capital,SDG 08: Decent Work and Economic Growth,WEF People: Dignity and Quality,
|
|
|
With a focus to make the lives of our employees easier, we have launched Burgani Mobile App, which offers many features such as employee self-service, an onboarding section for new joiners, internal recruitment opportunities, staff recognition tools, staff offers, Burgan considers employee welfare and work life balance as a major component in improving the culture and overall productivity at the Bank. Hence, it is our goal to be on par with the industry. As per the Bank’s policy, the employees are given an option of flexible working hours, known as Flexitime, where employees are able to choose the working hours most suitable to them which enhances employee work life balance. All employees can avail a range of leaves such as annual leave, sick leave, hospitalization leave, marriage leave, parental leave etc. to provide them with a healthy work life balance and higher productivity at work. In Burgan Bank, all employees male & female are entitled to parental leave. During the reporting period, a total of 12 females and 3 males took parental leave. All employees who took parental leave in the reporting period have joined their positions and have continued to remain employed with the Bank as on 31st December 2021. Our employees are the most important assets of the Bank and we strive to promote continuous Learning and Talent Development (LTD) initiatives to ensure that our employees are well equipped to meet the demands of a dynamic, and increasingly digital and agile work environment. We provide endless opportunities for our employees to grow and develop their careers in order to fulfill their potential. This is supported by our investment in LTD across all levels of the organization. Our approach to LTD program encompasses a broad suite of technical and behavioral solutions and involves types of trainings such as leadership skills, technical certifications, talent development programs, on the job rotations, coaching and mentoring, holistic banker programs, compliance / risk, health & safety awareness programs, new joiner programs, competency-based programs etc. The development and increased usage of our online learning portal has widened the outreach of our LTD initiatives. Bank wide, in a bid to ensure the growth of employees, we provided all of our employees with relevant trainings and has surpassed the total training hours of the previous year by 65% standards in providing non-monetary benefits to our employees. Applicable benefits such as: Life and Medical Insurance, Health Club Membership, Disability and Invalidity Coverage, Parental Leave, School Fees, Annual Ticket, Staff Zero Interest Loan
|
|
|
Flexible Working Arrangements for Employees
|
Safe Workplace
Workforce Responsibility
|
GRI 403: Occupational Health and Safety,IFC PS 2: Labour and Working Conditions,IIRF: Human Capital,SASB: Human Capital,SDG 03: Good Health and Wellbeing,WEF People: Health and Well Being,
|
|
|
As per the Bank’s policy, the employees are given an option of flexible working hours, known as Flexitime, where employees are able to choose the working hours most suitable to them which enhances employee work life balance. All employees can avail a range of leaves such as annual leave, sick leave, hospitalization leave, marriage leave, parental leave etc. to provide them with a healthy work life balance and higher productivity at work. In Burgan Bank, all employees male & female are entitled to parental leave. During the reporting period, a total of 12 females and 3 males took parental leave. All employees who took parental leave in the reporting period have joined their positions and have continued to remain employed with the Bank as on 31st December 2021. Burgan Bank launched a wellness initiative for the benefits of its employees, organized by the Human Resources Department and in partnership with Kuwait Hospital, to promote the health and safety of our employees who will benefit from a comprehensive range of free preventive health checkups, which will allow them to diagnose any potential health problem and prevent chronic diseases. 45% of our employees registered for the free checkups. Burgan Bank also conducted an internal vaccination campaign in cooperation with the Ministry of Health to encourage employees taking Covid-19 vaccine where 85% of registered employees got vaccinated. Burgan Bank organized an awareness seminar for its employees about breast cancer in cooperation with Kuwait Hospital with the aim of contributing to raising female employees’ awareness of the importance of early detection of breast cancer through periodic examination. Female employees were offered 55% discount for Mammogram test
|
|
|
Fair Wage, Benefits and Contracts
|
Workforce Responsibility
|
BRSR Principle 3: Promote Well-being ,BRSR Principle 5: Human Rights ,GRI 401: Employment,IFC PS 2: Labour and Working Conditions,IIRF: Human Capital,SASB: Human Capital,SDG 08: Decent Work and Economic Growth,UNGC Principle 02 Human Rights,WEF People: Dignity and Quality,
|
|
|
Burgan considers employee welfare and work-life balance as major components in improving the culture and overall productivity at the Bank. Hence, it is our goal to be on par with the industry standards in providing non-monetary benefits to our employees. The benefits provided to our employees are: Life and Medical Insurance; Health Club Membership; Disability and Invalidity Coverage; School Fees; Staff Zero Interest Loan
|
|
|
Talent Attraction and Retention
|
Diversity and Equality
Workforce Responsibility
|
BRSR Principle 3: Promote Well-being ,GRI 401: Employment,IFC PS 2: Labour and Working Conditions,IIRF: Human Capital,SASB: Human Capital,SDG 08: Decent Work and Economic Growth,WEF People: Skills for the Future,
|
|
|
At Burgan, we believe in attracting, retaining, and building talent and empowering them to become future leaders in the sector. we realize the importance of nurturing future leaders to ensure the operations of the Bank run smoothly with minimum disruption in the event of leadership changes. Additionally, the Bank has a succession plan in place overseen by the Board Nomination and Remuneration Committee (BNRC) to ensure succession and leadership continuity in critical positions while maintaining capabilities required to deliver Bank’s long-term strategy. Accordingly, we train and prepare these individuals for these positions to take the next step when called upon. We see these individuals as our future leaders that will steady the ship in uncertain times and continue to take the Bank towards growth and profitability.
|
|
|
Employee Well Being Programs
|
PE: Exit Positioning
Workforce Responsibility
|
GRI 401: Employment,IFC PS 2: Labour and Working Conditions,IIRF: Human Capital,SASB: Human Capital,SDG 03: Good Health and Wellbeing,WEF People: Health and Well Being,
|
|
|
Human Resources and Development Group through its Learning and Talent Development team delivered multiple virtual awareness sessions to Burgan employees as part of its Wellbeing and Welfare program where the goal was to help employees achieve their full potential, cope with daily stress and make the work environment a space that promotes employee wellbeing, productivity and growth. Over 210 employees participated in this initiative. Burgan Bank launched a wellness initiative for the benefit of its employees, organized by the Human Resources Department and in partnership with Kuwait Hospital, to promote the health and safety of our employees who will benefit from a comprehensive range of free preventive health checkups, which will allow them to diagnose any potential health problem and prevent chronic diseases. 45% of our employees registered for the free checkups.
|
|
|
Employee Engagement Initiatives
|
Ratings Focus
Workforce Responsibility
|
BRSR Principle 3: Promote Well-being ,GRI 413: Local Communities,IFC PS 2: Labour and Working Conditions,IIRF: Human Capital,SASB: Human Capital,SDG 03: Good Health and Wellbeing,WEF People: Skills for the Future,
|
|
|
Communication is key for any community to thrive and at Burgan Bank we are focused on listening to all employees. In 2021, we conducted several surveys covering organisational culture, risk culture, training feedback and employee health. Response rates across surveys were over 90%, demonstrating an engaged and communicative workforce, and feedback has helped to continually adapt to support the needs of our employees. We have also built channels through community clubs, Ro2ya programme, gamification on our L&D portal, reward and recognition programme, and digital bulletin boards to drive success for employees and ensure the bank is providing a healthy work environment. Burgan Bank launched “Burgani”, its HR mobile application as part of its strategic digital transformation initiative to automate HR processes and boosts employee engagement. The app is a new milestone that translates the bank’s vision to maximise its stakeholder value by leveraging operational and technological capabilities, and support internal business functions
|
|
|
Formal Employee Feedback
|
Employees
Feedback
|
|
|
|
In 2021, we conducted several surveys covering organisational culture, risk culture, training feedback and employee health. Response rates across surveys were over 90%, demonstrating an engaged and communicative workforce, and feedback has helped to continually adapt to support the needs of our employees
|
|
|
Employee Performance Appraisal
|
Ratings Focus
Workforce Responsibility
|
GRI 102: GD Governance,IFC PS 2: Labour and Working Conditions,IIRF: Human Capital,SASB: Leadership and Governance,SDG 17: Partnerships to achieve the Goal,WEF Governance: Quality of Governing Body,
|
|
|
The banks remuneration practices are linked to both short term and long term performance goals. Key financial and non-financial performance measures are aligned to the Bank’s business strategy. Performance based remuneration is based on the bonus pools allocated by the BNRC/Board for the purpose of rewarding employee performance. The rewards are based on the bank’s overall performance, department/group performance and individual contribution thereof. The senior management team’s performance is measured through balanced scorecard which reviews the key performance areas of Customer focus, financial performance, process improvement and people management. All other employees in the bank have annual performance appraisals assessing financial and non-financial objectives based on their roles
|
|
|
Long-term Incentive Program for Senior Management
|
Ratings Focus
Social Overview
|
GRI 102: GD Governance,IFC PS 2: Labour and Working Conditions,IIRF: Human Capital,SASB: Leadership and Governance,SDG 17: Partnerships to achieve the Goal,WEF Governance: Quality of Governing Body,
|
|
|
Risk being a key factor in determining the sustainability of long term performance the deferral of remuneration is essential to improving risk alignment in the remuneration package. The deferral of remuneration currently applies to staff identified such as the Vice Chairman & Group CEO (VC & GCEO) and Deputy Group CEO & CEO Kuwait and senior management team. 1. Deferral Amount: A portion of the variable remuneration component not exceeding 50%, should be deferred over an appropriate period of time as defined in point 2 below. 2. Deferral Period: the deferred portion of the variable remuneration should be spread over a period not exceeding five years, and is to be aligned with the nature of the business, its risks and the activities of the member of staff in question. The actual payment of variable remuneration is spread over a period which takes account of the underlying business cycle of the Bank and its business risks 3. The deferral portion and percentage may be adjusted in accordance with the level of seniority or responsibility of the person remunerated. The deferral schedule is defined by different components: (a) the time horizon of the deferral; (b) the proportion of the variable remuneration that is being deferred; (c) the speed at which the deferred remuneration vests (vesting process); (d) the time span from accrual until the payment of the first deferred amount; and (e) the form of the deferred variable remuneration. The Bank will differentiate the deferral schedules by varying these five components
|
|
|
Workforce Training
|
PE: Operating Performance
Ratings Focus
Training
Workforce Responsibility
|
BRSR Principle 1: Ethical Transparent and Accountable,BRSR Principle 3: Promote Well-being ,GRI 404: Training and Education,IFC PS 2: Labour and Working Conditions,IIRF: Human Capital,SASB: Human Capital,SDG 04: Quality Education,WEF People: Skills for the Future,
|
|
A : 32095
|
Our employees are the most important assets of the Bank and we strive to promote continuously Learning and Talent Development (LTD) initiatives to ensure that our employees are well equipped to meet the demands of a dynamic, and increasingly digital and agile work environment. We provide endless opportunities for our employees to grow and develop their careers in order to fulfil their potential. This is supported by our investment in LTD across all levels of the organization. Our approach to LTD program encompasses a broad suite of technical and behavioural solutions and involves types of training such as leadership skills, technical certifications, talent development programs, on-the-job rotations, coaching and mentoring, holistic banker programs, compliance/risk, health & safety awareness programs, new joiner programs, competency-based programs etc. The development and increased usage of our online learning portal have widened the outreach of our LTD initiatives. Bank-wide, in a bid to ensure the growth of employees, we provided all of our employees with relevant training and has surpassed the total training hours of the previous year by 65%
|
|
|
Broader Education Initiatives
|
Training
Workforce Responsibility
|
BRSR Principle 1: Ethical Transparent and Accountable,BRSR Principle 5: Human Rights ,GRI 404: Training and Education,IFC PS 2: Labour and Working Conditions,IIRF: Human Capital,SASB: Human Capital,SDG 10: Reduced Inequality,WEF People: Skills for the Future,
|
|
|
Burgan Bank launched a campaign to mark breast cancer awareness month in collaboration with Kuwait Hospital. Through this campaign, the Bank offered its customers a 55% discount on a mammogram for an early breast cancer screening, as part of Burgan Bank’s determined efforts to play an active role in bringing positive change to the lives of people within its community. Throughout the campaign period, which spanned from the October 1st to 31st, all Burgan Bank female cardholders benefited from this special discount when booking a regular mammogram at Kuwait Hospital. Kuwait Hospital is a medical services provider that offers high quality health care and top-notch services. This campaign highlights both institutions’ efforts towards the common objective of promoting the community’s health and wellbeing
|
|
|
Respecting Employee Rights
|
Ratings Focus
Safe Workplace
|
BRSR Principle 5: Human Rights ,GRI 412: Human Rights Assessment,IFC PS 2: Labour and Working Conditions,IIRF: Human Capital,SASB: Social Capital,SDG 10: Reduced Inequality,UNGC Principle 01 Human Rights ,WEF People: Dignity and Quality,
|
|
|
Burgan bank is committed to respecting, protecting and advancing human rights, within our organizational practices, culture, operations and investment choices, and in all regions in which we do business. Burgan bank has worked to contribute to society, protect human rights, and serve the financial and investment needs of our clients and communities. Burgan bank is now in the early stages of formalizing our commitment to respect and protect human rights. Human Resources and Development Group through its Learning and Talent Development team delivered multiple virtual awareness sessions to Burgan employees as part of its Wellbeing and Welfare program where the goal was to help employees achieve their full potential, cope with daily stress, and make the work environment a space that promotes employee wellbeing, productivity and growth. Over 210 employees participated in this initiative. Burgan Bank launched a wellness initiative for the benefits of its employees, organized by the Human Resources Department and in partnership with Kuwait Hospital, to promote the health and safety of our employees who will benefit from a comprehensive range of free preventive health checkups, which will allow them to diagnose any potential health problem and prevent chronic diseases. 45% of our employees registered for the free checkups. Burgan Bank also conducted an internal vaccination campaign in cooperation with the Ministry of Health to encourage employees taking Covid-19 vaccine where 85% of registered employees got vaccinated. Burgan Bank organized an awareness seminar for its employees about breast cancer in cooperation with Kuwait Hospital with the aim of contributing to raising female employees’ awareness of the importance of early detection of breast cancer through periodic examination. Female employees were offered 55% discount for Mammogram test. With a focus to make the lives of our employees easier, we have launched Burgani Mobile App, which offers many features such as employee self-service, onboarding section for new joiners, internal recruitment opportunities, staff recognition tool, staff offers, announcements and various other features.
|
|
|
Anti Discrimination Workplace
|
Ratings Focus
Safe Workplace
|
Boursa Kuwait S: Non Discrimination,BRSR Principle 3: Promote Well-being ,BRSR Principle 5: Human Rights ,GRI 406: Non-discrimination,IFC PS 2: Labour and Working Conditions,IIRF: Intellectual Capital,SASB: Human Capital,SDG 10: Reduced Inequality,UNGC Principle 06 Labour ,WEF People: Dignity and Quality,
|
|
|
Burgan Bank has zero tolerance for discrimination and has developed policies and procedures that denounce any practices that are associated with discrimination and corrective actions to be taken in case of any such occurrences. The bank places high importance on providing equal opportunities to all employees based on merit and experience, irrespective of age, gender, disability, race, ethnicity, origin, religion or economic or otherstatus. The acceptance of diverse culture in the Bank has led to zero cases of discrimination reported during this period. Discrimination and harassment, whether based on a person’s race, gender, gender identity or expression, color, religion, national origin, citizenship, age, disability, marital status, sexual orientation, ancestry, are repulsive and completely inconsistent with our tradition of providing a respectful, professional and dignified workplace
|
|
|
Effective Grievance Mechanisms
|
PE: Entry Due Diligence
Safe Workplace
Workforce Responsibility
|
BRSR Principle 1: Ethical Transparent and Accountable,BRSR Principle 3: Promote Well-being ,BRSR Principle 5: Human Rights ,GRI 412: Human Rights Assessment,IFC PS 1: Environmental and Social Risks and Impacts,IIRF: Intellectual Capital,SASB: Human Capital,SDG 17: Partnerships to achieve the Goal,WEF People: Dignity and Quality,
|
|
|
The Bank has developed a dedicated policy and procedure document “Staff Grievance and Problem Solving” where employees have a mechanism to report any grievance or concerns faced by an employee. The Bank’s policy strictly states that “no employee shall be penalized, formally or informally, for voicing a grievance as long as he/she follows the applicable policies and procedures of the Bank
|
|
|
Electronic Services Solutions Usage by Customers
|
Ratings Focus
Customers
Metrics
|
GRI 102: GD Reporting Practice,IIRF: Intellectual Capital,SASB: Social Capital,SDG 09: Industry Innovation and Infrastructure,WEF Governance: Stakeholder Engagement,
|
|
|
AGB launched a new electronic services solution with new features, such as cheque deposit through ATM, funds transfer using ATM and contactless cards. The bank also launched a new intranet network to optimise internal communication and project management, as well as opening its new state-of-art headquarters – which is the only smart building in Algeria. AGB maintained its position in the top three banks in terms of profitability in the private sector
|
|
|
Customers Experiencing Hardship
|
Financial Institutions
|
GRI 102: GD Stakeholder Engagement ,IIRF: Social and Relationship Capital,SASB: Social Capital,SDG 09: Industry Innovation and Infrastructure,WEF Governance: Stakeholder Engagement,
|
|
|
Burgan Bank believes that a vibrant Small and Medium Enterprise (SME) sector plays pivotal role in generation of employment and innovation, promotes efficient productivity, economic growth, and diversification in the national economy. Recognizing the need of financing SMEs which is one of the major challenges faced globally, Burgan has significantly enhanced its capabilities to support SMEs through a range of product offerings in different phases of growth, from start-up to expansion. Burgan is fully committed to achieve New Kuwait Vision 2035 which aims to improve economy by strengthening the private sector. Below table depicts our support to the SMEs, who we believe are an important sector for the economy and have contributed immensely to the country’s socio-economic development as well as boosted employment opportunities. As part of the Bank’s commitment towards financial inclusion of the unbanked or underbanked communities, the Bank has provided a total of 177,037 B-Dinar accounts and cards to these communities as on 31st December 2021. Also, we provided 17,090 no-cost retail checking accounts to previously unbanked or underbanked customers as of 31st December 2021
|
|
|
Home Ownership and New Business Support
|
Financial Institutions
|
GRI 102: GD Stakeholder Engagement ,IIRF: Social and Relationship Capital,SASB: Social Capital,SDG 09: Industry Innovation and Infrastructure,WEF Governance: Stakeholder Engagement,
|
|
|
Burgan Bank believes that a vibrant Small and Medium Enterprise (SME) sector plays a pivotal role in generation of employment and innovation, promotes efficient productivity, economic growth, and diversification in the national economy. Recognizing the need of financing SMEs which is one of the major challenges faced globally, Burgan has significantly enhanced its capabilities to support SMEs through a range of product offerings in different phases of growth, from start-up to expansion. Burgan is fully committed to achieving New Kuwait Vision 2035 which aims to improve economy by strengthening the private sector
|
|
|
Product and Fee Transparency
|
Financial Institutions
|
GRI 102: GD Stakeholder Engagement ,IIRF: Social and Relationship Capital,SASB: Social Capital,SDG 12: Responsible Consumption and Production,WEF Governance: Stakeholder Engagement,
|
|
|
Details of Product fees and services are available on the company website
|
|
|
Customer Complaint Representation
|
Financial Institutions
PE: Operating Performance
|
BRSR Principle 9: Provide Value to Consumers,GRI 102: GD Stakeholder Engagement ,IIRF: Social and Relationship Capital,SASB: Social Capital,SDG 09: Industry Innovation and Infrastructure,WEF Prosperity: Innovation of Products and Services,
|
|
|
At Burgan Bank we strive to provide superior banking services that are catered for your needs and guarantee your maximum satisfaction, therefore your comments, remarks & complaints are very valuable to us. To ensure a smooth flow of communication between us, and as per the Central Bank of Kuwait instructions we have established a Client Complaint and Protection Unit functioning effectively since July 2011
|
|
|
Fair and Responsible Banking Initiatives
|
Financial Institutions
|
GRI 102: GD Stakeholder Engagement ,IFC PS 1: Environmental and Social Risks and Impacts,IIRF: Social and Relationship Capital,SASB: Business Model and Innovation,SDG 09: Industry Innovation and Infrastructure,WEF Governance: Stakeholder Engagement,
|
|
|
As one of the leading banking institutions in Kuwait, we are aware of the degree of responsibility and the impact we have in lending or investing to companies. Burgan Bank is committed to provide sustainable financing which may be used for providing credit for green projects. A preferential credit may be provided by the bank to customers who aim to reduce their environmental footprint. We may also seek to pursue impact investing, by targeting companies and sectors that have direct social and/or environmental impacts. Information security and cyber security are critical to our operations and processes. At Burgan Bank, we respect the privacy of our employees, business partners, customers and visitors who interact with the bank. We have safeguards for data privacy of all our stakeholders, with legal and security standards. Our bank has been certified and compliant with ISO 27001 Information Security Management System and 27701 Privacy Information Management System (PIMS) since 2020. Burgan Bank is the first bank in Kuwait to obtain PIMS certification, demonstrating our commitment to keep our IT systems secure. We have also established a Vulnerability Management Program (VMP) to identify vulnerabilities in our information systems that pose a data security risk. We scan our assets periodically for vulnerabilities, patches, application, operating system, database and other interfaces. As a result of these preventative measures, the bank has had no instances of data breaches. Our ability to drive inclusive growth stems from our focus on making a positive change in the communities in which we operate. Financial inclusion is key to driving inclusive development, and the banking sector has a pivotal role in accelerating economic formalisation among the under-banked population. Small and medium businesses (SMEs) are important for the economy and contribute immensely to the country’s socio-economic development. They generate employment opportunities and often work hand-in-hand towards the development of the nation’s underdeveloped areas. We are committed to providing banking services to SMEs as part of our focus on increasing financial inclusion, and stimulating and diversifying local economies
|
|
|
Broad Digital Account Access
|
Financial Institutions
|
GRI 418: Customer Privacy,IIRF: Social and Relationship Capital,SASB: Business Model and Innovation,SDG 09: Industry Innovation and Infrastructure,WEF Governance: Stakeholder Engagement,
|
|
|
The Bank made 7 upgrades to the mobile app, which was released with several market-leading features in this year. As a result, the Bank’s average mobile app rating is 4.5, which is on par among the top 3 banks in Kuwait. The improved quality of the Bank’s digital offerings created strong traction in customer registrations on the Bank’s online platform. The subscription ratio increased by 20% in 2021 compared to 2020. We also witnessed a rise in the number of Digital Transactions reaching 8.7 million in 2021 which was 3 times compared to 2020. Burgan Bank offers convenient electronic banking facilities, including telephone banking, mobile banking and secure internet banking, giving you full control of your finances 24 hours a day, no matter where you are
|
|
|
Community Support Initiatives
|
Community
|
BRSR Principle 8: Inclusive and Equitable Development,GRI 413: Local Communities,IFC PS 7: Indigenous Peoples,IIRF: Social and Relationship Capital,SASB: Social Capital,SDG 08: Decent Work and Economic Growth,WEF: Employment and Wealth Generation,
|
|
|
The Bank offered its Platinum sponsorship to the Kuwait Equestrian Federation’s (KEF) inaugural showjumping tour as part of the Bank’s expansive, community-focused social responsibility program. The Tour extended across the entire equestrian season from November 2021 until April 2022. It features the participation of more than 300 showjumpers representing a large number of public and private equestrian clubs from across Kuwait. In total, the tournament included eight competitions in three clubs, namely the Hunting and Equestrian Club, Kuwait Riding Center and Messilah Equestrian Club. In line with its social responsibility efforts, Burgan Bank took part in the Second Ahmadi Governorate Blood Donation Drive, in collaboration with the Department of Blood Transfusion Services at the Ministry of Health. Held with the aim of raising national awareness of the importance of donating blood throughout the year to support the Blood Bank, as well as the life-saving impact of blood donations, the drive was held at the Headquarters of the Cooperative Blood Transfusion Center at Al-Adan Hospital under the slogan “A drop of your blood... a life for others”
|
|
|
Local Employment and Sourcing
|
Community
|
Boursa Kuwait S: Nationalism,BRSR Principle 8: Inclusive and Equitable Development,GRI 204: Procurement Practices,IFC PS 7: Indigenous Peoples,IIRF: Social and Relationship Capital,SASB: Social Capital,SDG 08: Decent Work and Economic Growth,WEF: Employment and Wealth Generation,
|
|
|
Mitigation of negative social and environmental impacts throughout the supply chain is one of the key focus areas for the bank which is primarily achieved through following responsible procurement practices. This involves implementing the highest ethical standards on all bank procurements & supporting local suppliers. 99% of the bank’s procurement budget spent is towards local suppliers. Burgan is continuously monitoring and ensuring its compliance with respect to the Government’s drive to recruit more Kuwaiti citizens to bring about balance in the country’s labor market. In an effort to improve the Kuwaitization rate, the bank has rolled out various initiatives as follows: Targeted recruitment for Senior and Mid-level jobs with focus on local talent, Clear and solid career progression path aligned with Bank strategy, Review and align compensation structure to remain competitive in the market, Planned replacement of retirees with Kuwaiti Talent, Continue to maintain and develop local skill and leadership pipeline through Ro2ya program
|
|
|
Community Investment Policy
|
Community
Metrics
PE: Operating Performance
Policies
|
BRSR Principle 2: Sustainable and Safe,BRSR Principle 8: Inclusive and Equitable Development,GRI 413: Local Communities,IIRF: Social and Relationship Capital,SASB: Social Capital,SDG 08: Decent Work and Economic Growth,WEF: Employment and Wealth Generation,
|
|
|
Burgan Bank celebrated its 20th year of a long-standing partnership with the Kuwait Association for the Care of Children in Hospital (KACCH) and Bayt Abdullah Children’s Hospice (BACCH). Bayt Abdullah is the first and only children’s hospice in the Middle East and, along with KACCH, is considered one of the largest charities in Kuwait, assisting children and their families to fund treatment and recovery from serious diseases and providing palliative care services for life limiting or life threatening illnesses; helping them overcome stress and negative effects of hospitalisation. Burgan Bank’s contributions have helped support the development of healthcare and paediatric facilities in several hospitals where KACCH provides its services. Through these annual donations, KACCH has been able to recruit, train and educate Child Life Specialists and expand the reach of its Child Life Programmers in Kuwait
|
|
|
Wider Stakeholder Initiatives
|
Community
Ratings Focus
|
BRSR Principle 3: Promote Well-being ,BRSR Principle 9: Provide Value to Consumers,GRI 413: Local Communities,IFC PS 4: Community Health Safety and Security,IIRF: Social and Relationship Capital,SASB: Social Capital,SDG 08: Decent Work and Economic Growth,WEF Governance: Stakeholder Engagement,
|
|
|
Once again, the Bank proudly supported and sponsored the Wheelchair Fencing Titleholder, Tareq Al-Qallaf, for the seventh consecutive year; the athlete who has continued to maintain his first-place ranking and positive spirit throughout his tenure as a sportsman and world champion. Serving as an exemplary model of willpower and determination, AlQallaf has become a symbol and proudly represented Kuwait on the international level for years; overcoming his disability and using it as a drive to pursue global excellence in his field; Burgan Bank organized a special training course for newly hired accounting experts at the Ministry of Justice. The special course was organized by Burgan’s Learning and Talents Development Department in collaboration with the Retail, Corporate and Legal Departments. Designed to share the Bank’s knowledge and experience for the purpose of enhancing the public’s understanding of the banking sector’s dynamics and functions, the training offered the 25 participating accounting experts the chance to engage in a unique learning experience; As part of its ongoing efforts to drive environmental awareness, Burgan Bank supported the global movement World Earth Day by switching off non-essential lights and cutting off power throughout most of its branches for the duration of one hour
|
|
|
Employee Engagement With Community
|
Community
Employees
|
|
|
|
In line with its social responsibility efforts, Burgan Bank took part in the Second Ahmadi Governorate Blood Donation Drive, in collaboration with the Department of Blood Transfusion Services at the Ministry of Health. Held with the aim of raising national awareness of the importance of donating blood throughout the year to support the Blood Bank, as well as the life-saving impact of blood donations, the drive was held at the Headquarters of the Cooperative Blood Transfusion Center at Al-Adan Hospital under the slogan “A drop of your blood... a life for others”. Burgan Bank organized a special training course for newly hired accounting experts at the Ministry of Justice. The special course was organized by Burgan’s Learning and Talents Development Department in collaboration with the Retail, Corporate and Legal Departments. Designed to share the Bank’s knowledge and experience for the purpose of enhancing the public’s understanding of the banking sector’s dynamics and functions, the training offered the 25 participating accounting experts the chance to engage in a unique learning experience. Burgan Bank announced a new dynamic partnership with The Scientific Center of Kuwait (TSCK), which was established by the Kuwait Foundation for the Advancement of Sciences (KFAS) to promote science, technology, and build a culture of science for a sustainable future in Kuwait
|
|
|
Corporate Governance Policies
|
Framework
Policies
|
GRI 102: GD Governance,IIRF: Human Capital,SASB: Leadership and Governance,SDG 16: Peace Justice and Strong Institutions,WEF Governance: Governing Purpose,
|
|
|
Burgan Bank (“the Bank”) is committed to the highest standards of corporate governance and recognizes that good governance is pivotal in helping the business to deliver its strategies whilst generating sustainable shareholder value and meeting its obligations towards shareholders and other stakeholders. As an essential part of this commitment, the Bank operates within a well-defined governance structure and embeds governance principles and practices in its operations based upon the four cornerstones of accountability, transparency, fairness and integrity. The Bank follows the guidelines of the Central Bank of Kuwait, which are based on Basel Committee recommendations on Corporate Governance. The Bank also counts on the community’s support and partnership in advocating excellence in corporate governance. Hence, the Bank appeals to all other market players for joining the Bank in contributing to a continuous enhancement of its quality by practicing good corporate governance not only for the corporate growth, but also for the prosperity of the State of Kuwait. The provisions under this CG manual shall apply to the Board of Directors, the Executive Management, employees and the service providers of the Bank
|
|
|
Governance Oversight Framework
|
Framework
Policies
|
CDP: Climate,GRI 102: GD Governance,IIRF: Human Capital,SASB: Leadership and Governance,SDG 16: Peace Justice and Strong Institutions,TCFD: Governance,WEF Governance: Governing Purpose,
|
|
|
The Board shall have overall responsibility for the Bank, including approving and overseeing the implementation of the Bank’s strategic objectives, risk strategy, corporate governance and corporate values. The Board shall also be responsible for providing oversight of the Executive Management. The Board members shall exercise their independence and commitment to perform their role towards the Bank and all its stakeholders without being under an effect or influence which may limit their ability to look into the Bank’s affairs, discuss them and make a decision on it in an objective manner to protect the minority's rights. The Corporate Governance framework at the Bank ensures protection of shareholder’s rights and their equal treatment, especially in light of the laws, regulations and instructions issued by the regulatory bodies, and incorporates the same into the Bank’s policies and procedures
|
|
|
Allocation of Duties and Responsibilities
|
Framework
|
GRI 102: GD Governance,IFC PS 2: Labour and Working Conditions,IIRF: Human Capital,SASB: Leadership and Governance,SDG 16: Peace Justice and Strong Institutions,TCFD: Governance,WEF Governance: Governing Purpose,
|
|
|
The Board has established the following Board Committees in order to enhance its supervision effectiveness over the operations of the Bank. Each committee member’s expertise, skills and background were considered while forming the committees to assure the best supervision of the committee over the Bank’s operation according to each committee's responsibilities. Board Corporate Governance Committee; Board Audit Committee; Board Nomination and Remuneration Committee; Board Strategic and Digital Committee; Board Credit Committee; Board Investment Committee; Board Credit and Investment Committee
|
|
|
Behaviour and Business Ethics
|
Framework
|
Boursa Kuwait G: Ethics and Anti Corruption,GRI 102: GD Ethics and Integrity,IIRF: Human Capital,SASB: Leadership and Governance,SDG 16: Peace Justice and Strong Institutions,WEF Governance: Ethical Behaviour,
|
|
|
We at Burgan adopt high standards of professionalism, honesty, integrity, and ethical behaviour in conducting business and in our engagement with all stakeholders. The Bank believes in value-based banking systems, where we are committed to upholding our high standards. To ensure these standards are maintained throughout the Bank and in its operations, we provide awareness and training to our employees on good corporate behaviour which helps us in inculcating a good governance culture throughout the Bank
|
|
|
Implementation of Codes of Conduct
|
Framework
PE: Entry Due Diligence
Ratings Focus
|
GRI 102: GD Governance,IIRF: Human Capital,SASB: Leadership and Governance,SDG 16: Peace Justice and Strong Institutions,WEF Governance: Ethical Behaviour,
|
|
|
The Bank shall have a Board-approved policy for ‘Code of Business Conduct and Ethics that includes a definition of conflict of interest, related parties and transactions based on insider information of the Bank. Such policy shall be circulated to all the Bank’s employees and Board members and their signatures shall be obtained in adherence to its content. The Board shall ensure specifying professional standards and institutional values that enhance the integrity of the Bank, the Board members, the Executive Management, and other employees. These standards and related policies shall be published on Bank’s website and the degree of adherence to it shall be specified in the governance report issued in the Bank’s annual report. Burgan Bank’s Code of Conduct describes the values and minimum standards for ethical business conduct that we expect all of our employees and Directors to follow. These values and standards govern employee interactions with our clients, competitors, business partners, government and regulatory authorities, and shareholders, as well as with other employees. In addition, it forms the cornerstone of our policies, which provide guidance on compliance with applicable laws and regulations
|
|
|
Dedicated Person for Risk Management
|
Ratings Focus
Risk Control
|
GRI 102: GD Governance,IIRF: Human Capital,SASB: Leadership and Governance,SDG 17: Partnerships to achieve the Goal,WEF Governance: Governing Purpose,
|
|
|
The Bank has set up an independent Risk Management Group (RMG) headed by the Group Chief Risk Officer (GCRO) who reports directly to the Board Risk Committee (BRC). RMG does not have any business targets in terms of either level of business or income/profits to be achieved, with a view to ensuring its objectivity in analysing various risks. The mission of RMG is to identify, measure and control various risks and report to the top management and BRC of the Bank on the effects and, where possible, mitigations. The Bank has a comprehensive Risk Policy that classifies the risks faced by it in its activities into certain families of risks and accordingly specific responsibilities have been given to various officers for the identification, measurement, control and reporting of these identified families of risks. Among the families of risks are: Credit Risk which includes default risk of clients and counterparties; Market Risk which includes interest rate, foreign exchange, liquidity and equity risks; Operational Risk which includes risks due to failures from people, processes, systems and external events
|
|
|
Independence of Risk Management
|
Ratings Focus
Cyber Security
Risk Control
|
GRI 102: GD Governance,IIRF: Human Capital,SASB: Leadership and Governance,SDG 16: Peace Justice and Strong Institutions,WEF Governance: Risk and Opportunity Oversight,
|
|
|
2nd Line of Defence: Group Risk Management, Group Compliance and Anti-Financial Crime; Independent Monitoring: As the 2nd Line of Defence, Group Risk Management independently monitors, reports, provides oversight and advises the 1st Line of Defence (Business and Support Functions) on risks. It also monitors that the 1st Line of Defence’s controls are properly designed, firmly in place and are operating as intended
|
|
|
Anti Corruption Policy
|
PE: Entry Due Diligence
Policies
Ratings Focus
Risk Control
|
Boursa Kuwait G: Ethics and Anti Corruption,BRSR Principle 1: Ethical Transparent and Accountable,GRI 205: Anti-corruption,IIRF: Human Capital,SASB: Leadership and Governance,SDG 16: Peace Justice and Strong Institutions,UNGC Principle 10 Anti Corruption,WEF Governance: Ethical Behaviour,
|
|
|
Seperate section on Anti Financial Crime is available on the Company Website
|
|
|
Anti Money Laundering Policy
|
Ratings Focus
Risk Control
|
GRI 102: GD Ethics and Integrity,IIRF: Financial Capital,SASB: Leadership and Governance,SDG 16: Peace Justice and Strong Institutions,WEF Governance: Ethical Behaviour,
|
|
|
Seperate section on Anti Financial Crime is available on the Company Website
|
|
|
Related Party Transactions
|
Ratings Focus
Risk Control
Transactions
Transparency
|
Boursa Kuwait G: Disclosure Practices,BRSR Principle 1: Ethical Transparent and Accountable,GRI 102: GD Ethics and Integrity,IIRF: Social and Relationship Capital,SASB: Leadership and Governance,SDG 16: Peace Justice and Strong Institutions,WEF Governance: Risk and Opportunity Oversight,
|
|
|
Transactions with related parties are disclosed in the annual report 2021
|
|
|
Whistle Blower Policy
|
PE: Entry Due Diligence
Ratings Focus
Risk Control
|
GRI 102: GD Ethics and Integrity,IIRF: Human Capital,SASB: Leadership and Governance,SDG 16: Peace Justice and Strong Institutions,WEF Governance: Ethical Behaviour,
|
|
|
The Bank has adopted a comprehensive dedicated Whistleblowing policy which aims to improve the systems and procedures, encourage and support employees, and improve the overall integrity and performance of the organization through transparent policies and effective procedures. The policy is applicable to all of the Bank’s employees, vendors, consultants and advisors, in addition to other related parties, and encompasses all stakeholders, both minority and majority. The whistleblowing policy aims at giving the employees a clear channel to communicate fears or doubts they might have on the possibility of violations in a way that allows independent investigation into these doubts and their follow-up, without fear of reprisal. A whistleblower may, in good faith, disclose confidential or anonymous information in connection with an allegation of misconduct, fraud, corruption, illegal act, malpractice or any other misconduct by any employee. The bank has its whistleblowing policy and procedures in place, which encourages Directors and employees to bring to the bank’s attention any instances of illegal or unethical conduct, actual or suspected incidents of fraud as well as actions that may affect the bank’s financial integrity
|
|
|
Strikes and Lockouts
|
Ratings Focus
External Factors
|
GRI 102: GD Reporting Practice,IIRF: Human Capital,SASB: Leadership and Governance,SDG 16: Peace Justice and Strong Institutions,WEF Governance: Stakeholder Engagement,
|
|
|
No Strikes and Lockouts during the year
|
|
|
Tax Transparency Disclosures
|
Metrics
External Factors
Transparency
|
Boursa Kuwait G: Disclosure Practices,GRI 207: Tax,IIRF: Financial Capital,SASB: Leadership and Governance,SDG 16: Peace Justice and Strong Institutions,WEF Prosperity: Community and Social Vitality,
|
|
A : 4747000
B : 3025000
C : 36
|
Tax Expense: KD 4747000 (2021); KD 3025000 (2020)
|
|
|
Material Controversies Identified
|
External Factors
|
GRI 102: GD Governance,IIRF: Intellectual Capital,SASB: Leadership and Governance,SDG 17: Partnerships to achieve the Goal,WEF Governance: Stakeholder Engagement,
|
|
|
No Material Controversies were identified during the year
|
|
|
Concerns Identified in Audit Report
|
Risk Control
Transparency
|
GRI 102: GD Governance,IIRF: Human Capital,SASB: Leadership and Governance,SDG 17: Partnerships to achieve the Goal,WEF Governance: Ethical Behaviour,
|
|
|
We have audited the consolidated financial statements of Burgan Bank K.P.S.C. (the “Bank”) and its subsidiaries (together “the Group”), which comprise the consolidated statement of financial position as of 31 December 2021, the consolidated statements of income, comprehensive income, changes in shareholders’ equity and cash flows for the year then ended, and notes, comprising significant accounting policies and other explanatory information. In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as of 31 December 2021, and its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with International Financial Reporting Standards (“IFRS”), as adopted by the CBK for use by the State of Kuwait
|
|
|
Auditor and Fee Disclosure
|
Metrics
External Factors
Transparency
|
Boursa Kuwait G: Disclosure Practices,GRI 102: GD Governance,IIRF: Financial Capital,SASB: Leadership and Governance,SDG 17: Partnerships to achieve the Goal,WEF Governance: Ethical Behaviour,
|
|
|
Independent auditor: Dr Rasheed M. Al–Qenae, License No. 130-A, of KPMG Safi Al-Mutawa & Partners, Member Firm of KPMG International
|
|
|
CEO / Chairperson Separation
|
Board of Directors
Chairman
Chief Executive Officer
Committees
Ratings Focus
|
GRI 102: GD Governance,IIRF: Intellectual Capital,SASB: Leadership and Governance,SDG 16: Peace Justice and Strong Institutions,WEF Governance: Quality of Governing Body,
|
|
|
Chairman: Sheikh Abdullah Nasser Sabah Al-Ahmad Al-Sabah; Chief Executive Officer: Mr. Masoud M. J Hayat
|
|
|
CEO and Board Compensation
|
Board of Directors
Ratings Focus
|
Boursa Kuwait G: Disclosure Practices,Boursa Kuwait G: Incentivized Pay,BRSR Principle 5: Human Rights ,GRI 102: GD Governance,IIRF: Intellectual Capital,SASB: Leadership and Governance,SDG 17: Partnerships to achieve the Goal,WEF Governance: Quality of Governing Body,WEF People: Dignity and Quality,
|
|
|
CEO and Board compensation has been disclosed in the annual report 2021
|
|
|
Board Composition
|
Board of Directors
Ratings Focus
|
Boursa Kuwait G: Board Diversity,GRI 102: GD Governance,IIRF: Intellectual Capital,SASB: Leadership and Governance,SDG 16: Peace Justice and Strong Institutions,WEF Governance: Quality of Governing Body,
|
|
|
The Board shall comprise of non-executive Directors, as elected by the General Assembly, In April 2019, Vice Chairman has been assigned by the Board as Burgan Bank Group CEO after obtaining necessary approvals by regulatory bodies, and therefore is concidered and Executive Director. The Board will ensure independence in actions and decisions at all times.The Board shall comprise of sufficient number of members to allow it to form the required number of Board Committees. Election and renewal of the Board membership shall be done in compliance with the applicable rules and regulations. The changes related to the number of Board members of the Bank shall be suitably reflected through amendments in the Articles of Association to correspond to the implementation of the rules, regulations and instructions. Each member of the Board shall serve a term of three years, at the end of which the Board shall be formed again and it shall be permissible to appoint the members whose term has expired
|
|
|
Board Overview
|
Board of Directors
Ratings Focus
|
GRI 102: GD Governance,IIRF: Human Capital,SDG 16: Peace Justice and Strong Institutions,WEF Governance: Quality of Governing Body,
|
|
|
Board Overview is available on the Company website
|
|
|
Management Overview
|
Ratings Focus
Executive Management
|
GRI 102: GD Governance,IIRF: Human Capital,SASB: Leadership and Governance,SDG 16: Peace Justice and Strong Institutions,WEF Governance: Quality of Governing Body,
|
|
|
A brief profile of each Management is available in the annual report 2021
|
|
|
Disclosure of Board Age Ranges
|
Board of Directors
Ratings Focus
|
Boursa Kuwait G: Board Diversity,Boursa Kuwait G: Disclosure Practices,GRI 102: GD Governance,IIRF: Intellectual Capital,SASB: Leadership and Governance,SDG 10: Reduced Inequality,WEF Governance: Quality of Governing Body,
|
|
|
Board age ranges are disclosed in the sustainability report 2021
|
|
|
Non Executive Board of Directors
|
Board of Directors
Ratings Focus
Metrics
|
Boursa Kuwait G: Board Independence,GRI 102: GD Governance,IIRF: Intellectual Capital,SASB: Leadership and Governance,SDG 16: Peace Justice and Strong Institutions,WEF Governance: Quality of Governing Body,
|
|
A : 10
B : 11
C : 90
|
10 out of the 11 board members are non executive directors
|
|
|
Independent Board of Directors
|
Board of Directors
Committees
Ratings Focus
Metrics
|
Boursa Kuwait G: Board Independence,GRI 102: GD Governance,IIRF: Intellectual Capital,SASB: Leadership and Governance,SDG 16: Peace Justice and Strong Institutions,WEF Governance: Quality of Governing Body,
|
|
A : 5
B : 11
C : 45
|
5 out of the 11 board members are independent directors
|
|
|
Entrenched Board of Directors
|
Board of Directors
Committees
Ratings Focus
Metrics
|
GRI 102: GD Governance,IIRF: Intellectual Capital,SASB: Leadership and Governance,WEF Governance: Quality of Governing Body,
|
|
A : 2
B : 11
C : 18.18
|
2 out of 11 Members on the Board have been associated for over 10 years
|
|
|
Founders Represented on Board
|
Board of Directors
Committees
Ratings Focus
Metrics
|
GRI 102: GD Governance,IIRF: Intellectual Capital,SASB: Leadership and Governance,SDG 16: Peace Justice and Strong Institutions,WEF Governance: Quality of Governing Body,
|
|
A : 0
B : 9
C : 0
|
No Founder on the Board
|
|
|
Audit Committee Composition
|
Board of Directors
Committees
Metrics
|
Boursa Kuwait G: Disclosure Practices,GRI 102: GD Governance,IIRF: Intellectual Capital,SASB: Leadership and Governance,SDG 16: Peace Justice and Strong Institutions,WEF Governance: Ethical Behaviour,
|
|
A : 1
B : 4
C : 25
|
1 out of the 4 members of the audit committee are independent members
|
|
|
Remuneration Committee Composition
|
Board of Directors
Committees
Metrics
|
GRI 102: GD Governance,IIRF: Intellectual Capital,SASB: Leadership and Governance,SDG 16: Peace Justice and Strong Institutions,WEF Governance: Quality of Governing Body,
|
|
A : 2
B : 4
C : 50
|
2 out of the 4 members of the remuneration committee are independent members
|
|
|
Nomination Committee Composition
|
Board of Directors
Metrics
|
Boursa Kuwait G: Disclosure Practices,GRI 102: GD Governance,IIRF: Intellectual Capital,SASB: Leadership and Governance,SDG 16: Peace Justice and Strong Institutions,WEF Governance: Quality of Governing Body,
|
|
A : 2
B : 4
C : 50
|
2 out of the 4 members of the nomination committee are independent members
|
|
|
Risk Committee Composition
|
Board of Directors
Committees
Metrics
|
|
|
A : 3
B : 4
C : 75
|
The BRC shall be responsible for providing review and report to the Board on the current and future risk strategy and tolerance along with supervising implementation of this strategy by the Executive Management. The BRC shall ensure existence of effective systems for risk management and independence of these functions. Members Name: Dr. Amani Bouresli (Chairman (Independent)) Mr. Michel Accad (Member (Independent)) Mr. Fouad Douglas (Member (Independent)) Mr Mazen Hawwa (Member)
|
|
|
Board Member Alternative Commitments
|
Board of Directors
Committees
Ratings Focus
|
Boursa Kuwait G: Disclosure Practices,GRI 102: GD Governance,IIRF: Intellectual Capital,SASB: Leadership and Governance,SDG 16: Peace Justice and Strong Institutions,WEF Governance: Quality of Governing Body,
|
|
|
The Details of other board position is disclosed in annual report 2021
|
|
|
Financial Expertise on Audit Committee
|
Board of Directors
Committees
|
Boursa Kuwait G: Disclosure Practices,GRI 102: GD Governance,IIRF: Intellectual Capital,SASB: Leadership and Governance,SDG 16: Peace Justice and Strong Institutions,WEF Governance: Quality of Governing Body,
|
|
|
All members of the audit committee have financial expertise
|
|
|
Shareholder over 20% Ownership
|
Ratings Focus
Metrics
Shareholders
|
BRSR: Principle 4,GRI 102: GD Governance,IIRF: Social and Relationship Capital,SASB: Leadership and Governance,SDG 16: Peace Justice and Strong Institutions,WEF Governance: Risk and Opportunity Oversight,
|
|
|
Kuwait Projects Company Holding & Group (Overland Real Estate Co., United Industries Co., Kuwait United Consultancy Co., United Gulf Holding Co.) - 64.33%
|
|
|
Material Executive Share Trading
|
Executive Management
Transparency
|
GRI 102: GD Ethics and Integrity,IIRF: Intellectual Capital,SASB: Leadership and Governance,SDG 16: Peace Justice and Strong Institutions,WEF Governance: Ethical Behaviour,
|
|
|
In any dealing in securities, Board Members must abide by the provisions of applicable laws, rules and regulations, including those of CBK, MoCI CMA and/or Boursa. Board Members are prohibited from deriving benefit, or assisting others to derive benefit, as a result of possessing “insider information” concerning the Bank, its customers and/or its relationships (i.e. information not in the public domain that, if made available to the public, could materially affect the price of securities)
|
|
|
Executive Pay Disclosures
|
Executive Management
Managing Director
Transparency
|
Boursa Kuwait G: Disclosure Practices,Boursa Kuwait G: Incentivized Pay,BRSR Principle 5: Human Rights ,GRI 102: GD Governance,IIRF: Intellectual Capital,SASB: Leadership and Governance,SDG 16: Peace Justice and Strong Institutions,WEF People: Dignity and Quality,
|
|
|
Executive pay disclosures are done in Annual Report 2021
|
|
|
Executive Pay Performance Alignment Policies
|
Ratings Focus
Executive Management
Policies
|
Boursa Kuwait G: Incentivized Pay,GRI 102: GD Governance,IIRF: Intellectual Capital,SASB: Leadership and Governance,SDG 17: Partnerships to achieve the Goal,WEF Governance: Quality of Governing Body,
|
|
|
The banks remuneration practices are linked to both short-term and long-term performance goals. Key financial and non-financial performance measures are aligned with the Bank’s business strategy. Performance-based remuneration is based on the bonus pools allocated by the BNRC/Board for the purpose of rewarding employee performance. The rewards are based on the bank’s overall performance, department/group performance and individual contribution thereof. The senior management team’s performance is measured through a balanced scorecard which reviews the key performance areas of Customer focus, financial performance, process improvement and people management. All other employees in the bank have annual performance appraisals assessing financial and non-financial objectives based on their roles
|
|
|
Disclosure of Board and Subcommittee Attendance
|
Board of Directors
Ratings Focus
|
Boursa Kuwait G: Disclosure Practices,GRI 102: GD Governance,IIRF: Intellectual Capital,SASB: Leadership and Governance,SDG 17: Partnerships to achieve the Goal,WEF Governance: Quality of Governing Body,
|
|
|
Board and Committee meetings attendance is disclosed in the annual report 2021
|
|
|
Sensitivity Analysis and Stress Testing
|
Ratings Focus
Risk Control
|
GRI 102: GD Governance,IIRF: Intellectual Capital,SASB: Leadership and Governance,SDG 16: Peace Justice and Strong Institutions,WEF Governance: Risk and Opportunity Oversight,
|
|
|
The Bank’s Liquidity management policies and limits ensure that liquidity is maintained at sufficiently comfortable levels to support operations and meet payment demands even under stressed market conditions. The Bank also has in place comprehensive stress testing policies and liquidity contingency funding that incorporate multiple scenarios covering both specific and general market-related events. The purpose of liquidity stress testing is to determine the incremental funding that may be required under extreme scenarios. Stress testing is fully integrated into the Bank’s liquidity risk management framework. It assesses the Bank’s ability to generate sufficient liquidity under extreme conditions and is a key input when defining liquidity targets and limits. The Group conducts sensitivity analysis on regular intervals in order to assess the potential impact of any major changes in the fair value of equity instruments. Based on the results of the analysis conducted there is no material implication over the Group’s profit or other comprehensive income for a 5% fluctuation in major stock exchanges
|
|
|
Soliciting Stakeholder ESG Feedback
|
Feedback
PE: Operating Performance
|
|
|
|
Burgan Bank welcomes your feedback and encourages you to share any comments, inquiries, or suggestions you may have on its sustainability journey at ESG@burgan.com
|
|
|
Crisis Related Contingency Plans
|
Climate
PE: Entry Due Diligence
|
BRSR: Principle 6,GRI 102: GD Strategy,SASB: Business Model and Innovation,SDG 03: Good Health and Wellbeing,WEF People: Dignity and Quality,
|
|
|
Implementing Business Continuity Management is critical to ensure that we maintain and continue our business operations in case of any unforeseen circumstances. During crises, such as natural disasters, force majeure events, technology failure, epidemics, or a pandemic, our aim is to ensure that financial losses are minimized, we continue to serve our customers and ensure quick recovery from the business disruptions with minimum negative impacts. All our business functions are responsible for identifying and prioritizing their activities to support business continuity management. COVID-19 was a key disruption for 2020 and 2021 and the Bank adopted multiples measures to ensure our business continuity
|
|
|
Managing Move to a Low Carbon Economy
|
Climate
Ratings Focus
|
CDP: Climate,GRI 102: GD Strategy,SASB: Business Model and Innovation,SDG 13: Climate Action,TCFD: Risk Management,TCFD: Strategy,UNGC Principle 07 Environment ,WEF Planet: Climate Change,
|
|
|
Burgan Bank is fully committed to play an active role in reducing the consumption of natural resources in business operations and minimizing negative impacts on our environment. As a part of Banking industry, Burgan Bank’s carbon footprint is low compared to other energy intensive industries however, we acknowledge the consequences our energy consumption will have on the environment, and we actively seek interventions to optimize the energy use within the organization. Our direct and indirect energy consumption consists primarily of high-speed diesel and purchased electricity respectively. By emphasizing on optimizing our energy use throughout our operations, we have been able to increase the energy efficiency of our operations. During 2021, we saved 400 GJ (approx.) by usage of LED lights and minimizing the runtime of lights
|
|
|
Data Privacy, Cybersecurity and Systems Protection
|
Cyber Security
PE: Entry Due Diligence
Ratings Focus
Risk Control
|
Boursa Kuwait G: Data Privacy,BRSR Principle 9: Provide Value to Consumers,GRI 102: GD Strategy,SASB: Business Model and Innovation,SDG 16: Peace Justice and Strong Institutions,WEF Governance: Stakeholder Engagement,
|
|
|
Burgan Bank considers data security, data privacy and data-system integrity as crucial to its operations and has zero/no tolerance for attacks or breaches to the system. For this, we have ensured that we would follow the steps of prevention, detection and response. Prevention would be our first standpoint by having a core defence system (defence-in-depth approach) that analyses the trends of attempted attacks and accordingly dynamically enables additional controls. Followed by detection layers/monitoring of bank assets as the second step and response as the third standpoint, where we also emphasise multi-stage detection and automated, AI tools enabled with playbooks, manual monitoring and response mechanism to neutralize any threats. As a result, the Bank had no successful attacks or data breaches in its system for the year 2021
|
|
|
COVID-19: Consistency with ESG Policies
|
Policies
|
GRI 102: GD Reporting Practice,SASB: Business Model and Innovation,SDG 03: Good Health and Wellbeing,WEF People: Dignity and Quality,
|
|
|
COVID-19 was a key disruption for 2020 and 2021 and the Bank adopted multiple measures to ensure our business continuity. We also ensured the wellbeing of our employees with utmost priority by rolling out various employee welfare initiatives and we achieved minimum disruption of business services using a hybrid working model. It included activation of work-from-home (WFH) with our IT infrastructure scaled up to accommodate WFH using Virtual Private Network (VPN) capabilities. Post lockdown, we implemented a phased return to office plan for employees in various business functions depending on the nature and requirement of tasks. We published several COVID-19-related guidelines in line with local and international norms related to social distancing, contact tracing, quarantine, restricted business travel and halting of physical meetings and events. Our cybersecurity capabilities were enhanced to ensure smooth WFH for the employees and to prevent or mitigate operational risks
|
|
|
COVID-19: Communication of Crisis Actions
|
Workforce Responsibility
|
GRI 102: GD Reporting Practice,SASB: Leadership and Governance,SDG 03: Good Health and Wellbeing,WEF People: Dignity and Quality,
|
|
|
COVID-19 was a key disruption for 2020 and 2021 and the Bank adopted multiples measures to ensure our business continuity. We also ensured wellbeing of our employees with utmost priority by rolling out various employee welfare initiatives and we achieved minimum disruption of business services using a hybrid working model. It included activation of work from home (WFH) with our IT infrastructure scaled up to accommodate WFH using Virtual Private Network (VPN) capabilities. Post lockdown, we implemented a phased return to office plan for employees in various business functions depending on the nature and requirement of tasks. We published several COVID-19 related guidelines in line with local and international norms related to social distancing, contact tracing, quarantine, restricted business travel and halting of physical meetings and events. Our cybersecurity capabilities were enhanced to ensure smooth WFH for the employees and preventing or mitigating operational risks
|
|
|
COVID-19: Responsible Labour Practices
|
Workforce Responsibility
|
GRI 102: GD Reporting Practice,SASB: Business Model and Innovation,SDG 03: Good Health and Wellbeing,WEF People: Dignity and Quality,
|
|
|
We helped our people work confidently through the pandemic through rigorous safety protocols, flexible hybrid working models and wellness resources to navigate the challenges of managing work and family. Burgan Bank’s Human Resources Group rolled out several initiatives to create a human centric environment with a focus on employee wellness including: Sessions run by the Learning & Talent Development team to promote employee engagement and to provide coping strategies for those struggling with the challenges brought on by the pandemic. These included sessions on stress management, Reiki, office yoga and meditation; Encouraging our employees to protect themselves by holding vaccination campaigns on site for easy and quick access to the COVID-19 vaccine; Sponsoring free preventive health check-ups for all employees; and Breast cancer awareness sessions with significant employee discounts on early detection mammograms
|
|
|
COVID-19: Adapting to Technology Needs
|
Technology
|
GRI 203: Indirect Economic Impacts,SASB: Business Model and Innovation,SDG 03: Good Health and Wellbeing,WEF People: Dignity and Quality,
|
|
|
Our cybersecurity capabilities were enhanced to ensure smooth WFH for the employees and preventing or mitigating operational risks
|
|
|
COVID-19: Implementing Health and Safety Plans
|
Health and Safety
|
Boursa Kuwait S: Global Health and Safety,BRSR Principle 3: Promote Well-being ,GRI 403: Occupational Health and Safety,SASB: Business Model and Innovation,SDG 03: Good Health and Wellbeing,WEF People: Dignity and Quality,
|
|
|
Burgan Bank conducted an internal vaccination campaign in cooperation with the Ministry of Health to encourage employees taking Covid-19 vaccine where 85% of registered employees got vaccinated. Sessions run by the Learning & Talent Development team to promote employee engagement and to provide coping strategies for those struggling with the challenges brought on by the pandemic. These included sessions on stress management, Reiki, office yoga and meditation. Encouraging our employees to protect themselves by holding vaccination campaigns on site for easy and quick access to the COVID-19 vaccine; sponsoring free preventive health check-ups for all employeesBurgan Bank conducted an internal vaccination campaign in cooperation with the Ministry of Health to encourage employees taking Covid-19 vaccine where 85% of registered employees got vaccinated. Sessions run by the Learning & Talent Development team to promote employee engagement and to provide coping strategies for those struggling with the challenges brought on by the pandemic. These included sessions on stress management, Reiki, office yoga and meditation. Encouraging our employees to protect themselves by holding vaccination campaigns on site for easy and quick access to the COVID-19 vaccine; sponsoring free preventive health check-ups for all employees
|
|
|
COVID-19: Community Contributions
|
Metrics
|
GRI 203: Indirect Economic Impacts,SASB: Business Model and Innovation,SDG 03: Good Health and Wellbeing,WEF People: Dignity and Quality,
|
|
|
The bank ran a blood donation drive and donated medical equipment to help fight against COVID-19. Since the beginning of the pandemic and curfew measure implementation, the Bank worked closely with the Government and the Central Bank of Kuwait to provide support to the economy in a quick and efficient way and to support its customers in their financial needs. Moreover, the Bank supported government efforts to combat the spread of the pandemic by contributing towards fund created by Central Bank of Kuwait (CBK) and donated KD 1 million to Kuwait’s Red Crescent Society
|
|
|
Diversity and Equal Opportunity
|
Material Topic
|
|
|
|
To inculcate an inclusive approach in our everyday business operations with a diverse workforce.
|
|
|
Business Integrity
|
Material Topic
|
|
|
|
To have a well-established corporate governance structure that allows the bank to maintain business integrity and transparency
|
|
|
Anticorruption
|
Material Topic
|
|
|
|
To implement systems and processes to prevent instances of corruption and maintain trust among key stakeholders
|
|
|
Non-discrimination
|
Material Topic
|
|
|
|
To prevent discrimination on the grounds of gender, race, caste, and religion in order to inculcate fairness and justice and maintain the goodwill and brand value
|
|
|
Regulatory Compliance
|
Material Topic
|
|
|
|
To avoid any disruption to businesses, it is the Bank’s constant endeavor to achieve complete compliance for all regulations
|
|
|
E-banking
|
Material Topic
|
|
|
|
To serve our clients efficiently, while reducing our operating costs in the long-run
|
|
|
Responsible Lending and Investing
|
Material Topic
|
|
|
|
To encourage responsible credit allocation with a view to contribute towards the regional and global commitment to reducing GHG emissions and promote social development
|
|
|
Economic Performance
|
Material Topic
|
|
|
|
To deliver economic performance that goes beyond the financial returns for our investors and also encompasses a wider impact that we create as an employer and generator of economic activity
|
|
|
Data Security and Privacy
|
Material Topic
|
|
|
|
To take utmost responsibility in securing customer data as breaches can have significant impact on customer trust and the future of our business
|
|
|
Kuwaitisation
|
Material Topic
|
|
|
|
The Bank’s efforts are focused towards Kuwaitisation which further aligns with Kuwait’s National Development Plan to develop local talent
|
|
|
Customer Experience
|
Material Topic
|
|
|
|
To create better value for our customers through improved experiences
|
|
|
Financial Literacy and Inclusion
|
Material Topic
|
|
|
|
To support our stakeholders in increasing their financial literacy to increase reach of the bank’s services to the underserved
|
|
|
Training and Education
|
Material Topic
|
|
|
|
To emphasize on continuous training and development of our employees
|
|
|
Corporate Social Responsibility
|
Material Topic
|
|
|
|
Maintaining a healthy and positive impact in the communities we operate is critical to maintaining our social license to operate and to creating wider prosperity
|
|
|
Supplier Social Assessment
|
Material Topic
|
|
|
|
To ensure our suppliers are assessed in terms of social aspects which will enable social inclusion in entire value chain
|
|
|
Employee Satisfaction
|
Material Topic
|
|
|
|
Our employees’ well-being and satisfaction is of utmost importance to us as it helps in improving employee efficiency, effectiveness and morale
|
|
|
Energy Consumption
|
Material Topic
|
|
|
|
To optimize our energy consumption in order to reduce emissions
|
|
|
Waste Management
|
Material Topic
|
|
|
|
To create focus on minimizing waste generation and maximizing recycling efforts
|
|
|
Supplier Environment Assessment
|
Material Topic
|
|
|
|
To ensure our suppliers are assessed in terms of environmental aspects which will enable environmental considerations inclusion in entire value chain
|
|
|
Governance Awards
|
|
|
|
|
AGB has succeeded in establishing itself as a major private bank in Algeria. AGB was recognised as a major player in the digitalisation space and was awarded Best banking Service in Algeria during 2021. The Bank won 4 awards from “Global Finance” for Digital Banks in Kuwait: Best Website Design; Best Information Security & Fraud Management; Best Open Banking APIs
|
|
|
Social Awards
|
|
|
|
|
Year after year, our robust character and stable long-term outlook is reaffirmed with certifications and ratings awarded by distinguished internationally renowned institutions. For instance, Burgan Bank is the only bank in Kuwait to have won the JP Morgan Chase Quality Recognition Award for 20 consecutive years. This assurance of quality and robustness are reinforced by our customers and shareholders trust that will continue to honour in the years to come
|
|
|
Customer Awards
|
|
|
|
|
As part of a collaborative digital strategy, we have accelerated and made solid progress on the Group’s digitalisation, modernising and simplifying our IT architecture. Our Digital Team was awarded several prestigious digital awards by Global Finance for the year 2021. We maintained ~90% customer satisfaction rate along with 4.5-star app ratings on both Apple Store and Google Play store
|
|
|
SDG Reconciliations
|
Metrics
Reporting
|
Boursa Kuwait G: External Assurance,GRI 102: GD Organizational Profile,SASB: Leadership and Governance,SDG 00: Goal Reconciliation,SDG 16: Peace Justice and Strong Institutions,WEF Governance: Quality of Governing Body,
|
|
|
The 2030 Agenda for Sustainable Development, adopted by all United Nations Member States in 2015, provides a shared blueprint for peace and prosperity for people and the planet, now and into the future. Burgan Bank is actively working towards contributing to established goals to make the world a better place to live in. The table below depicts how Burgan Bank contributes toward the sustainable goals
|
|
|
GRI Reconciliations
|
Reporting
|
Boursa Kuwait G: External Assurance,GRI 000: Report ,GRI 102: GD Organizational Profile,SASB: Leadership and Governance,SDG 16: Peace Justice and Strong Institutions,WEF Governance: Quality of Governing Body,
|
|
|
The Sustainability Report 2021 has been prepared in accordance with the “Global Reporting Initiative (GRI) Standards: Core option”
|
|
|
SASB Reconciliations
|
Reporting
|
GRI 102: GD Organizational Profile,SASB: Leadership and Governance,SDG 16: Peace Justice and Strong Institutions,WEF Governance: Quality of Governing Body,
|
|
|
The Sustainability Report 2021 has been prepared in accordance with the “Global Reporting Initiative (GRI) Standards: Core option” and meets the disclosure requirements of the Sustainability Accounting Standard for Commercial Banks, published by the Sustainability Accounting Standards Board (SASB)
|
|
|
Kuwait Boursa ESG Indicators
|
Index
|
Boursa Kuwait G: External Assurance,GRI 102: GD Organizational Profile,SASB: Leadership and Governance,SDG 16: Peace Justice and Strong Institutions,WEF Governance: Quality of Governing Body,
|
|
|
The Sustainability Report 2021 has been prepared in accordance with the “Global Reporting Initiative (GRI) Standards: Core option” and meets the disclosure requirements of the Sustainability Accounting Standard for Commercial Banks, published by the Sustainability Accounting Standards Board (SASB). Aligned with the United Nations’ Sustainable Development Goals (UNSDGs), the Report considers the priorities of Kuwait Vision 2035 “New Kuwait”, and Boursa Kuwait
|
|
|
ESG Ratings
|
Reporting
|
GRI 102: GD Organizational Profile,SASB: Leadership and Governance,SDG 16: Peace Justice and Strong Institutions,WEF Governance: Quality of Governing Body,
|
|
|
ESG Risk Rating: 38.8 (High Risk)
|
|
|
Sustainalytics Ratings
|
Index
|
GRI 102: GD Organizational Profile,SASB: Leadership and Governance,SDG 16: Peace Justice and Strong Institutions,WEF Governance: Quality of Governing Body,
|
|
|
ESG Risk Rating: 38.8 (High Risk)
|
|
|
ISO 9001 - Quality Management System
|
ISO
|
|
|
|
The Bank was re-certified with the prestigious ISO 9001:2015, making it the one of the few banks in the GCC and Kuwait to receive such certification for the Fifth consecutive time
|
|
|
ISO 27001 - Information Security Management
|
Ratings Focus
ISO
|
|
|
|
Burgan is certified with ISO 27001:2013 since 2020
|
|
|
All ESG News
|
|
|
|
|
Available
|
|
|
Environment Related
|
|
|
|
|
In partnership with the Scientific Center and within the sustainability strategy and social responsibility program, Burgan Bank sponsors the “Al-Watan has no equal” program - the circuit of the Jahra Reserve, one of the largest protected areas in Kuwait and considered one of the most important stations for bird migration
|
|
|
Social Related
|
|
|
|
|
Burgan Bank continues its support for the “Let's Be Aware" Financial Literacy Campaign by participating in staff blood donation campaign
|
|
|
Governance Related
|
|
|
|
|
Available
|
|
|
Sustainability Website
|
Environment
|
|
|
|
https://www.burgan.com/ir/Pages/sustainability.aspx
|
|
|
Year of Incorporation
|
|
|
|
|
Burgan Bank was Incorporated in 1977
|
|
|
Corporate Address
|
|
|
|
|
Corporate Address: Burgan Bank Kuwait P.O. Box: 5389, Al Safat 12170 Abdullah Al Ahmed Street, Al Sharq State of Kuwait.
|
|
|
E-mail
|
|
|
|
|
Email Id: ir@burgan.com
|
|
|
Telephone
|
|
|
|
|
Telephone Number: 22984641
|
|
|
Website
|
|
|
|
|
https://www.burgan.com/Pages/Home.aspx
|
|
|
Last Financial Year
|
|
|
|
|
Financial Year: 1st Jan to 31st Dec
|
|
|
Listing Stock Exchange
|
|
|
|
|
KSE Kuwait Stock Exchange
|
|
|
Paid-up Capital
|
|
|
|
|
The issued and fully paid-up share capital of the Bank comprises 3,287,812,500 (31 December 2021: 3,131,250,000 and 30 September 2021: 2,756,250,000) shares of 100 fils each
|
|
|
Number of Employees
|
PE: Operating Performance
|
|
|
|
Total Employees: 3700
|
|
|
Website - Governance
|
|
|
|
|
Burgan Bank (“the Bank”) is committed to the highest standards of corporate governance and recognizes that good governance is pivotal in helping the business to deliver its strategies whilst generating sustainable shareholder value and meeting its obligations towards shareholders and other stakeholders. As an essential part of this commitment, the Bank operates within a well-defined governance structure and embeds governance principles and practices in its operations based upon the four cornerstones of accountability, transparency, fairness and integrity. The Bank follows the guidelines of the Central Bank of Kuwait, which are based on Basel Committee recommendations on Corporate Governance
|
|
|
Website - Sustainability
|
|
|
|
|
A rich natural environment and healthy social environment are the foundation of economic and business development along with the improvement of people's lives. At Burgan Bank, we acknowledge our responsibility to manage environmental and social risks and to proactively identify opportunities that will help secure the financial well-being of our customers and Kuwait for generations to come. We are expanding our products and services and strengthening our corporate governance structures in recognition of our responsibility to advocate ethics, responsible financing and investing and contributing to the protection of the environment and creation of sustainable communities
|
|
|
Annual Report
|
|
|
|
|
The annual report 2021 is disclosed on the company's website
|
|
|
Annual Presentation
|
|
|
|
|
Investor Presentation FY 2021 is disclosed on the company's website
|
|
|
Sustainability Report
|
|
|
|
|
The Sustainability report 2021 has been prepared in accordance with the “Global Reporting Initiative (GRI) Standards: Core option” and meets the disclosure requirements of the Sustainability Accounting Standard for Commercial Banks, published by the Sustainability Accounting Standards Board (SASB). Aligned with the United Nations’ Sustainable Development Goals (UNSDGs), the Report considers the priorities of Kuwait Vision 2035 “New Kuwait”, and Boursa Kuwait
|
|
|
Bond Prospectus
|
|
|
|
|
The bond prospectus is disclosed on the company's website
|
|
|
Corporate Governance Report
|
|
|
|
|
The corporate governance report forms a part of the annual report 2021
|
|
|
Composition of Committees
|
Ratings Focus
|
|
|
|
The composition of committees are disclosed on the company's website
|
|
|
Board Membership and Remuneration Framework
|
|
|
|
|
The remuneration components consist of all forms of payments or benefits in exchange for the services provided by the employee and can be divided into: Fixed remuneration based on employee job role and market, Variable remuneration depending on employee performance Variable remuneration may be paid in cash and may be subject to a vesting or deferral period. Remuneration amounts are based on the bonus pools approved by the Board for the purpose of rewarding employee performance. The total amount of performance related remuneration is based on a combination of the assessment of the overall results of the Bank, of the performance of the business unit and of the individual concerned. When assessing individual performance, financial and non-financial targets and metrics are taken into account. The payout of the variable remuneration may be deferred as approved by the Board annually in line with the approved policy over a period of time not exceeding three years. The variable remuneration, including the deferred portion, is paid or vests only if it is sustainable according to the financial situation of the Bank as a whole, and justified according to the performance of the Bank, the business unit and the individual concerned. The Board Nominations and Remuneration Committee (BNRC) is responsible for presenting recommendations to the Board on the Bank-wide reward policy in line with applicable laws and regulations. The composition and responsibility of BNRC is further detailed under the Board Committees section of the Corporate Governance Report. The Board Nomination and Remuneration Committee (BNRC), after obtaining approval from the Board of Directors, has hired Ernst & Young consulting firm to conduct an independent review of the remuneration policy to assess alignment of financial reward granting practices to regulatory guidelines. Bearing in mind that BNRC members did not receive any additional remunerations other than the amount disclosed under Board Members Remuneration section mentioned above
|
|
|
Related Party Transactions Policy
|
Ratings Focus
Policies
|
|
|
|
Board Members must take care of related party transactions, and in this regards they must abide by the Bank’s Related Parties Policy
|
|
|
Whistle Blower Policy
|
Ratings Focus
Policies
|
|
|
|
The Bank shall place policies and procedures on Fraud/ Whistle Blowing - Private Informant Policy, including procedures enabling employees to contact the Board Chairman to communicate any concerns they might have on the possibility of violations or fraud, and in a way that allows independent investigation into these concerns and its follow-up. These procedures shall ensure that the Bank provides the required protection for these employees to assure them they will not be threatened or penalized even when there is nothing to prove their concerns. The execution of these procedures shall be supervised by the Bank's Internal Audit Department
|
|
|
Key Managerial Personnel
|
|
|
|
|
Details of key managerial personnel are disclosed in the annual report 2021
|
|
|
Code of Ethics
|
Policies
|
|
|
|
We, at Burgan Bank, believe that the reputation of any Banking organization depends not only on its financial position in the market but also on its integrity and the level of trust it enjoys. We are proud of our reputation for applying the highest ethical standards in all our business. Our growth, expansion, and ambitions for being the best Bank demand to intensify our professional ethical practice. Our ultimate goal is to become the trusted partner and excellent services and products provider
|
|
|
Privacy Policy
|
|
|
|
|
Protecting your privacy, along with your financial assets, is at the core of our business. You have chosen to do business with us, and we recognize our obligation to keep the information you provide to us secure and confidential
|
Welcome to the Burgan Bank ESG Profile
