BBK sets new benchmarks with Sustainability achievements

17 Sep 2024

Bank of Bahrain and Kuwait (BBK), the leading retail and commercial bank in Bahrain, has announced its key achievements according to the Bank’s Sustainability Report for 2023. This report highlights the Bank’s significant contributions to enhancing environmental and social sustainability and its unwavering commitment to governance across all business sectors. It also showcases BBK’s qualitative achievements in sustainability, emphasizing its ongoing dedication to sustainable finance, social responsibility, and the achievement of the Sustainable Development Goals.

In 2023, BBK recognized the critical role financial institutions play in addressing climate challenges. Consequently, the Bank established a specialized task force on climate change risks, including green finance initiatives. This move underlines BBK’s commitment to environmental responsibility, aligning with the directives of the Central Bank of Bahrain.

BBK has also reinforced its commitment to board independence, with independent directors now holding 50% of the board seats. The Bank has also made significant strides in improving gender diversity within its Board of Directors, with women occupying 31.8% of the board seats across BBK in 2023, up from 16.6% in 2022. These efforts reflect BBK’s dedication to enhancing its governance and management frameworks.

Mr. Yaser Alsharifi, BBK Group Chief Executive, stated, ” BBK takes pride in dedicating its efforts in 2023 to achieving these significant milestones. Through these initiatives, we reaffirm our commitment to embedding sustainability at the heart of our culture. The Bank has strategically aligned its priorities with the United Nations Sustainable Development Goals, striving to fulfill Bahrain’s Economic Vision 2030 and achieve the target of net-zero emissions by 2060.”

Mr. Alsharifi added, “15-35% of the Bank’s executive management targets are related to sustainability KPIs, reflecting BBK’s commitment to serving the community and providing products and services that enrich people’s lives without harming the environment. This year, the Bank aims to deepen its commitment to education, the environment, financial inclusion, women’s empowerment, and health to ensure a better future for all and to meet diverse needs.”

Mr. Hassaan Burshaid, BBK Group Chief Human Resources & Administration Officer, commented, “We are delighted to add these new achievements to BBK’s distinguished sustainability record. These successes affirm our commitment to the highest environmental, social, and governance standards, reinforcing our position in the industry.”

Mr. Burshaid emphasized that as a responsible corporate entity, the Bank believes that meaningful social and economic development is achieved through a conscientious approach to addressing collective risks, such as environmental challenges, women’s strategic inclusion in the workforce, youth empowerment, and capacity building.

He also added, “Our sustainability report not only showcases our ongoing efforts but also underscores our dedication to transparency and integrity with our stakeholders and valued clients. It highlights our commitment to delivering exceptional banking experiences through a holistic approach to sustainability, reflecting our dedication to generating positive environmental, social, and economic impacts.”

BBK also launched “Women on Board” program in cooperation with the Bahrain Institute of Banking and Finance (BIBF), which aimed to empower Bahraini women to reach senior executive and leadership positions, including board memberships.

By focusing on attracting local talent, BBK achieved a Bahraini workforce rate of 95.54% in 2023, marking significant progress in employing Bahraini nationals. The percentage of women in the Bank’s workforce increased from 40.72% in 2022 to 42% in 2023, while the representation of women in senior executive management rose from 20% in 2022 to 24% in 2023.

In 2023, BBK saw a notable improvement in customer satisfaction levels, with the Net Promoter Score (NPS) increasing from 67 in 2022 to 75. This growth reflects heightened customer loyalty and satisfaction with the Bank’s services.

BBK also supported local suppliers by allocating 81% of its budget to bolster the national economy. The Bank also maintained its dedication to community partnership initiatives, investing 3% of its pre-tax profits in community development. In 2023, BBK employees contributed a total of 116 volunteer hours to various social causes.

In 2023, the Bank experienced a significant shift in customer transaction processing, with 82% of transactions conducted through e-channels and Mobile apps, up from 77% in 2022. Additionally, the Bank introduced sustainability-related loans, offering customers preferential interest rates.

Furthermore, BBK also launched several pioneering programs and initiatives to enhance its sustainability efforts and demonstrate its commitment to environmental, social, and governance (ESG) considerations. These initiatives include the “Digital Academy” Digi Pro, which aims to enhance the digital capabilities of its employees, and a strategic partnership with “Nasmaakum” application to improve communication for individuals with hearing and speech disabilities, and the launch of the BBK Business platform to facilitate the digital transformation of companies.

The Bank reduced its environmental impact as well by decreasing paper consumption by 19%, introduced the “Grow” program to develop the skills of university graduates in banking.