Jordan Kuwait Bank Group has published its first standalone Climate
Report for 2025, setting out the Group’s approach to climate change, its
measurement of greenhouse gas (GHG) emissions across its operations and
financing activities, and the progress made in advancing the integration of climate-related
considerations into its business activities, risk management framework, and
decision-making processes.
The report reflects the Group’s commitment to strengthening
climate-related disclosure and enhancing transparency.
Structured around four key pillars, which are governance, strategy,
risk management, and metrics and targets, the report outlines the Group’s
approach to identifying, assessing, and managing climate-related risks and
opportunities. It also highlights the Group’s key climate-related achievements
during 2025.
The report covers the period from 1 January to 31 December 2025 and
has been prepared at the Jordan Kuwait Bank Group level. Its scope includes
Jordan Kuwait Bank, United Financial Investments Company, Ejara Leasing
Company, and Bank of Baghdad.
Haethum Buttikhi, Group Chief Executive Officer of Jordan Kuwait
Bank, said that the publication of the Group’s first Climate Report reflects
its commitment to strengthening climate resilience and enhancing its ability to
manage climate-related risks and opportunities across its businesses, noting that
climate change is reshaping the operating environment for financial
institutions and that its impacts are particularly significant in Jordan, one
of the world’s most water-scarce countries.
These challenges can affect the
sectors financed by the Group, the resilience of its clients, and its ability
to create sustainable long-term value.
Buttikhi added that 2025 marked an important milestone in the
Group’s climate journey, with the establishment of its first Group-wide
greenhouse gas emissions baseline, covering emissions from its operations,
value chain, and financing activities.
He explained that the Group is also
developing a decarbonization framework focused on reducing emissions from its
operations and value chain, as well as financed emissions associated with its
lending and investment activities.
During the year, the Group also strengthened its climate governance
and climate risk management by expanding Board-level oversight and integrating
climate-related considerations into its risk management framework and
stakeholder engagement plans.
The Group also -participated in stress testing
exercises that included climate related stress-tests, in line with the Central
Bank of Jordan.
At the same time, the Group continued to support the transition to
a low-carbon economy through sustainable finance. Its green lending portfolio
continued to grow, while the proceeds from Jordan’s first green bond were fully
allocated to finance sustainable water and wastewater projects.
The Group also partnered with the European Investment Bank (EIB) to
support the private sector’s green transition. Through this partnership, Jordan
Kuwait Bank became the first implementing partner in the region of EIB’s first
Green Transition Facility guarantee.
The report was prepared with reference to IFRS S2, the
climate-related disclosure standard issued by the International Sustainability
Standards Board (ISSB), as well as the climate-related disclosure requirements
issued by the Central Bank of Jordan and the Amman Stock Exchange.
The Group also applied internationally recognized methodologies to
support the measurement and disclosure of its greenhouse gas emissions. These
include the Corporate Standard and Corporate Value Chain Standard issued by the
Greenhouse Gas Protocol (GHG Protocol), as well as the methodology developed by
the Partnership for Carbon Accounting Financials (PCAF) for measuring and
disclosing financed emissions.
Jordan Kuwait Bank’s membership in PCAF further supports its
efforts to strengthen the measurement and disclosure of greenhouse gas
emissions associated with its financing activities.
The report represents an important step in the Group’s climate
journey, helping to improve the quality of climate-related data and
disclosures, advance the integration of climate risks into decision-making, and
expand sustainable finance in support of the transition to a more resilient and
lower-carbon economy.
To
view the First Climate Report for 2025, please click on the following link: https://bit.ly/4zhamzA
