Month: September 2024

Originally published in Principal Financial Group 2023 Sustainability Report

Protecting the environment

Managing climate impact

To create a more secure world, we pledge to be responsible stewards and mitigate our impact on the planet. Our long-term climate goals and plans are aligned with science- based targets to address climate change and support the transition to a low-carbon economy.

Our approach 

Managing our greenhouse gas (GHG) emissions is the primary focus of our broader environmental strategy. Across the company, we’re working to understand GHG emission sources to enable accurate measurement of scope 1, 2, and 3 GHG emissions and formulate reduction strategies.

Our goal 

Starting from a 2019 baseline, we aim to achieve a 65% reduction in our global scope 1 and scope 2 market-based GHG emissions by 2034 and achieve net zero GHG emissions by 2050. Our 65% reduction target over a 15-year period aligns with the Science Based Target initiative’s (SBTi) 1.5°C scenario. On average, our annual glide path goal is to achieve a 4.3% reduction in global scope 1 and scope 2 market-based GHG emissions. Based on current and available data, we are confident we can achieve our goal, and we monitor progress annually to ensure we’re on track.

Our actions and performance in 2023

Scope 1 and scope 2 GHG emissions1

We have been measuring and reporting our U.S. GHG emissions since 2010. In 2022, we began collecting and reporting global emissions for locations we either own or control. Out of our global scope 1 and scope 2 market-based emissions, our U.S. emissions represent nearly 76%.

We saw meaningful decreases in our emissions both in the U.S. and globally in 2023. Our U.S. GHG scope 1 and scope 2 market-based emissions decreased by 13.9% from 2022 to 2023, and our global scope 1 and scope 2 market-based GHG emissions decreased by 14.6% over that same period. 

Our emissions decreased as a result of changes to leased office spaces and favorable weather, among other factors. We closed a data center in March and moved those services to a leased location, which reallocates our electricity usage to a downstream asset. 

In our leased office spaces, we downsized one building and closed another. One other building became unoccupied between 2022 and 2023, resulting in reductions in our electricity usage. We also made improvements to our lighting fixtures in our parking ramps, which resulted in a decrease of energy use this year.

Warmer temperatures in Des Moines, Iowa (our headquarters) over the winter also contributed to less electricity and natural gas use. 

On average, since 2019 we’ve reduced global GHG emissions 11.5% each year, exceeding the annual reduction glide path target of 4.3%. 

We exceeded our 2023 target of a 17.3% reduction against our 2019 baseline with a 46% reduction in scope 1 and scope 2 market-based emissions.

46% reduction in scope 1 and scope 2 market-based emissions since 2019

Principal maintained “Management” status for environmental stewardship from CDP, after receiving a B rating on our 2023 CDP Climate Change Questionnaire, based on 2022 data. CDP classifies “Management” status as taking coordinated action on climate issues. 

Our B rating is higher than the global average (C), North American regional average (C), and consistent with the Financial Services sector average (B). We plan to complete the 2024 CDP Climate Change Questionnaire for 2023 data in Q3 2024.

Scope 3 GHG emissions2

We measure and report our scope 3 GHG emissions from purchased goods and services, fuel and energy-related activities (not included in scope 1 or 2), waste generated in operations, business travel, employee commuting, upstream leased assets, and downstream leased assets. 

Our climate action plans require the involvement of all our global operations. In 2023, we initiated our search for a new tool to advance our capabilities and gain information from our suppliers on their environmental performance. Across the organization, these improvements will help us better understand our scope 3 emissions. While there are still gaps in the data available to us, we are proud of the progress we have made.

What’s next 

In 2024, we remain focused on gaining more transparency into our scope 3 emissions as more data becomes available. This will enable improved strategic planning and reporting and allow us to continue to mature our climate transition strategy. Specifically, we are focusing on specific scope 3 categories including our purchased goods and services, business travel, employee commuting, leased assets, and investments.

To learn more, read the Principal Financial Group 2023 Sustainability Report.

12023 data will be verified in Q3 2024, and final figures disclosed in the 2024 CDP. MTCO2e are rounded to the nearest whole number.

2Scope 3 GHG emissions data for FY2022 can be found in the 2023 CDP. 2023 values will be verified in Q2 2024, and final figures will be disclosed in the 2024 CDP.

Insurance products issued by Principal National Life Insurance Co (except in NY) and Principal Life Insurance Company®. Plan administrative services offered by Principal Life. Principal Funds, Inc. is distributed by Principal Funds Distributor, Inc. Securities offered through Principal Securities, Inc., member SIPC and/or independent broker/dealers. Referenced companies are members of the Principal Financial Group®, Des Moines, IA 50392.​

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LEADERSHIP COMMITMENT
“2023 was another year of NBK’s steadfast dedication to sustainable practices, which was marked by the launch of our 3-year ESG Strategy Roadmap. Our roadmap lays out key goals and commitments in areas where we can significantly contribute to a sustainable and just transition to a low carbon economy. These are designed to make positive environmental and social impacts on the communities we serve. On behalf of NBK, I extend my gratitude to all our stakeholders for their consistent support. We’re confident that together, we can fulfil our ESG commitments, achieving tangible results towards a sustainable, socially fair future. Let’s continue forward to seize the opportunities that our shared commitment to sustainability offers.”
Hamad Mohamed Al-Bahar
Chairman

ABOUT 2023 NBK SUSTAINABILITY REPORT

This is NBK’s eighth consecutive annual Sustainability Report and factsheet focusing on the 2023 fiscal year. The report provides a detailed summary of the Bank’s significant ESG and sustainability matters, threats, and performance data. Here we also covered our entire ESG policies, strategies, and pledges for the reporting period. Our report is centered around the four pillars of NBK’s enhanced ESG Strategy Framework. Moreover, this report is aligned with both domestic and global sustainability or ESG reporting standards and frameworks including the Global Reporting Initiative (GRI), Sustainable Accounting Standards Board (SASB), United Nations Sustainable Development Goals (UNSDG), Boursa Kuwait’s ESG Reporting Guidelines, and Kuwait Vision 2035.

ABOUT NBK

NBK was established in 1952 and is the first shareholding company and a domestic bank within GCC to be locally founded. Currently, NBK is the leading conventional banking group in Kuwait. The bank also boasts about its credit ratings and brand value, positioning it among the top regional banks. NBK operates in 13 countries and boasts a network of more than 140 branches spread across 4 continents with its headquarters located in Kuwait. NBK’s primary business operations include Consumer Banking, Corporate Banking, NBK Wealth and Islamic Banking (through subsidiary Boubyan Bank).

ESG AT NBK

Leadership at NBK believes that sustainability is crucial for the bank’s success and is strongly committed to integrating sustainability efforts with our core business actions, risk management, services, and operations. The ESG Strategy aims to support economic growth and act as an example of sustainable development. This strategy is built around four main pillars: Governance for Resilience; Responsible Banking; Capitalizing on our Capabilities; and Investing in our Communities.

GOVERNANCE FOR RESILIENCE

NBK upholds strong ethical standards and comprehensive strategic planning, supported by transparent governance structures. Combined with our robust risk management that buffers against various risks, these key elements assure stakeholders of our powerful leadership, oversight, and accountability. In 2023, NBK launched a modular ESG governance framework with Board oversight. NBK also adopted measures to handle climate and ESG risks and opportunities. In this context, NBK institutionalized alignment with the recommendations of Taskforce on Climate-related Financial Disclosures (TCFD) during the year and developed a roadmap for adequately integrating climate-related matters in the bank’s enterprise risk management framework.

Key Highlights in 2023:

The Board approved the Group ESG Strategy, setting a formal implementation mandate.ESG metrics have been integrated into the Board and Executive Management’s responsibilities.A Sustainability & Climate Change Committee, headed by the Vice Chairman & GCEO, has been established.Five Sustainability Sub-Committees have been created, delegating ESG roles to the Executive Management.NBK joined the UNGC to enhance international alignment and stakeholder engagement.Maintained a score of ‘C’ from CDP, for both the Climate Change and Forest categories.

RESPONSIBLE BANKING

NBK intends to enhance sustainable finance offerings and support clients’ transition to sustainable business models. NBK recently incorporated ESG metrics into their client credit assessments, covering aspects like safety, environmental protection, succession planning, and governance. Moreover, we persistently monitor and handle our energy and water usage, greenhouse gas emissions, and material usage and disposal, while also ensuring it is all accurately reported

Key Highlights in 2023:

Sustainable Finance:

Approximately USD 3.65 billion in Sustainable Assets.Expanded bank offerings to Eco-friendly EV and Housing Loans.Updated procurement policies to include ESG principles.

Energy Management:

Reduced electricity consumption by 5.75% YoY and 15.8% compared to our baseline year (2021) through proactive energy management.Installed Building Energy Management System (BEMS) in 22 local branches

Climate Change and Decarbonization:

Reduced overall disclosed GHG emissions by 10.43% compared to baseline year (2021).

Responsible Procurement:

NBK has revised its Procurement Policy with the inclusion of ESG, implementing a more sustainable procurement strategy and methodology.Local suppliers comprised 70% of NBK’s total suppliers and 84% of the total procurement spending.

CAPITALIZING ON OUR CAPABILITIES

NBK’s strategy of ‘Capitalizing on our Capabilities’ is primarily focused on promoting sustainable business growth through organizational resilience. This starts with how we manage our workplace. Our policies, culture, practices, and programs are all designed to encourage a bank-wide transformation that aligns with our sustainability goals, achieved through extensive employee engagement and development programs. Alongside outlining our HR practices, we also state our commitment to diversity, equity, and inclusion initiatives. We strive to foster health, safety, and wellbeing, and continuously work towards establishing a flexible work environment that embraces digital solutions.

Key Highlights in 2023:
Diversity, Equity & Inclusion:

Women represent 44.0% of the workforce, with 28.8% females in managerial positions.Awarded by MEED: “Best Implementation of Diversity & Inclusion Initiatives”.41.9% of new hires are female.84.5% of new hires are Kuwaitis.

Employee Development:

Provided Sustainability Champions across the Bank with training on Global Reporting Initiative (GRI) Standards.Introduced the Sustainability Essentials Training Program Group-wide, enhancing employees’ understanding of key sustainability concepts.147,701 total training hours. On average, each employee received 6.1 training hours.Over 3,300 training hours on ESG-related topics with focus on Sustainability Awareness, Sustainable Finance, and Climate Risk Management.

Employee Engagement and Wellbeing:

Implemented an Employee Grievance Policy, accessible to all employees via the NBK Group website.Launched the Employee Engagement Survey “Your Voice Matters” in 2023 to foster a better and more inclusive workplace.

Digital Transformation:

Introduced a new mobile banking experience titled “Tailored for You”, offering NBK Customers the latest digital services

INVESTING IN OUR COMMUNITIES

Giving back to the community is an integral part of NBK’s mission and therefore ‘Investing in our Communities’ is a critical component of our ESG Strategy. Our community investments primarily aim to offer superior customer service, promote financial inclusion, enhance financial literacy and accessibility, and provide customer security, including data privacy. In addition, NBK has an extensive history of making sizeable financial contributions to community development. We are continuously focused on maximizing the positive social impact of our Corporate Social Responsibility (CSR) investments, in alignment with the United Nations Sustainable Development Goals (UNSDG).

Key Highlights in 2023:
Nationalization:

76.7% Nationalization rate.Launched the NBK Tech Academy in 2023, offering innovative digital transformation programs for Kuwaiti youth.

Community Development:

Community Investments totaled KD 28 million in 2023 (USD 91 million), a 22% increase from 2022.“Best Bank for Corporate Responsibility in the Middle East 2023” by Euromoney.NBK organized a Media Awareness Workshop on Sustainability and Climate Change, the first-of-its-kind in Kuwait.Committed KD 3.0 (USD 9.8) million for the restructuring of Shuwaikh Beach Waterfront in line with NBK’s corporate responsibility and sustainability principles.

Financial Inclusion:

Launched new designs for all our cards aligned with our inclusivity goals, including design themes especially for the visually impaired.Launched the “BANKEE” financial literacy program in Kuwait’s schools, with 15,940 students and around 3,400 teachers participating.

Women Empowerment:

Excellence in Inclusion, Equity, and Diversity Bronze Winner for NBK RISE by SHRM.Awarded by MEED: “Best Initiative for Women in Business”.Launched “She’s Next” initiative in partnership with VISA, a global advocacy program that aims to support women-owned small businesses.

The 2023 NBK Sustainability Report can be found at:
https://www.nbk.com/sustainability/sustainability-reports.html
The 2023 NBK Annual Report can be found at:
https://www.nbk.com/investor-relations/latest-annual-report.html

For additional information about NBK’s sustainability work, please contact:
Hisham Abouali
Sustainability Manager
sustainability@nbk.com
Tel: +965-22295188

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Nominations to join the Supervisory Board, Global Sustainability Standards Board and Due Process Oversight Committee 

September 9, 2024 /3BL/ – A global recruitment call is underway to appoint new members to three of the Global Reporting Initiative’s governance bodies, which underpin the continued success of GRI – the provider of the world’s most widely used sustainability reporting standards.

With a total of eight vacancies, GRI is looking for experienced professionals from diverse backgrounds to apply to join the following governance bodies, from 1 January 2025:

Supervisory Board: the body responsible for overseeing GRI’s long-term priorities and strategy. Candidates to fill one vacancy are being sought, with applicants particularly encouraged from the ASEAN and Latin America regions.Global Sustainability Standards Board (GSSB): the independent entity responsible for developing and setting the GRI Standards. With four vacancies, applications from all stakeholder constituencies are welcome, especially those representing investor institutions and civil society organizations.Due Process Oversight Committee: the body that ensures GSSB standard-setting activities are conducted in accordance with its due process. There are three vacancies open to applicants from the business enterprise, investor institution and mediating institution constituencies, particularly those from the Latin America and ASEAN regions.

Jessica Fries, Chair of the Supervisory Board said:

“Bringing together diverse representation from across GRI’s global, multi-stakeholder communities is at the heart of our work, ensuring that our strategy is responsive and delivers maximum impact. It is also key to developing robust standards that respond to the needs of different audiences. If you want to play a central role in shaping how organizations understand and report on their sustainability impacts, I encourage you to apply.”

Carol Adams, Chair of the GSSB said:

“It is an exciting time to be on the GSSB. With increased global focus on sustainable development, the GSSB is at the centre of GRI’s mission to upscale the actions and accountability of organizations for their impacts. Our work involves engaging with national and global frameworks and standard setters, and is supported by GRI’s experienced Standards Division and operations teams.”

Kathrin Madl, Chair of the DPOC, added:

“The Due Process Oversight Committee is an integral part of the GRI governance structure, ensuring that GRI’s standard-setting actions and processes increase public and stakeholder confidence and aligns with the public interest. We are seeking highly experienced individuals in the reporting landscape to contribute their knowledge and unique perspectives by joining the Committee.”

The call for new members is open until Friday 27 September 2024, 23:59 CEST. Appointments to all GRI governance bodies are on a voluntary basis and members serve a term of three years. GRI is seeking balanced representation that spans global regions – ensuring a wide range of interests, knowledge and backgrounds are reflected.

The adoption of EVs is on the rise with some reports predicting that the number of passenger EVs on the road will reach a staggering 730 million worldwide by 2040. To continue this growth, automotive manufacturers are focused on next-gen materials that meet consumer preferences—such as reliability, extended driving range, and faster charging—while meeting the thermal, chemical, and electrical needs of EVs. At Chemours our innovative products and technologies are helping drive the growth and evolution of better-performing and more sustainable EVs – from the battery to cabin comfort.

A key example is the use of advanced fluoropolymers in battery manufacturing, which can help accelerate the production process for battery components and eliminate the use of hazardous solvents traditionally used in lithium-ion battery production. This not only makes the manufacturing of EVs more cost-effective but also leads to more sustainable energy-efficient vehicles.

At the same time, the durability and reliability of EVs are greatly improved with the use of Chemours’ high-performing fluoroelastomers and fluoropolymers. These resilient materials are used in critical parts such as cables, seals, and gaskets, and can withstand the harshest conditions. This not only enhances the performance of the vehicles but also extends their lifespan.

Cabin comfort and the quality of the ride are also top priorities for drivers. Chemours’ low global warming potential fluorinated gases play a critical role in heating and cooling the cabin, but also enabling current and future performance improvements, such as battery cooling, extended driving ranges, faster charging and weight reduction, all while reducing total vehicle emissions. Moreover, Chemours’ advanced lubricants and fluoropolymers are engineered to reduce vibration in components and decrease outside noise, making journeys smoother and more enjoyable.

Chemours continues to focus on driving sustainable innovation for EVs. With the recent opening of the Chemours Battery Innovation Center, we are working with partners and customers to iterate, pilot, and adopt novel approaches to battery technology that will help make better-performing EVs a reality.

As we commemorate World EV Day, Chemours is proud to be a pioneer in the industry. Our unique chemistry and world-class products enhance EV sustainability and performance while effectively meeting consumer needs. Our role in advancing the future of electric mobility is key to our commitment to creating a more sustainable future.

Learn more about how Chemours is accelerating an electric future.