Kuwait City: Boursa Kuwait released an updated edition of its Environmental, Social and Governance (ESG) Reporting Guide, reflecting the latest developments in ESG reporting at both the local and international levels. The update forms part of the exchange’s ongoing efforts to enhance transparency, support listed companies in improving the quality of their ESG disclosures in line with international best practices, contributing to the long-term sustainability of the Kuwaiti capital market.

The updated guide provides a comprehensive reference framework that enables listed companies to disclose their sustainability practices and performance in a clear, structured and transparent manner, enabling them to keep up with the growing expectations of investors, regulators and stakeholders for reliable and comparable information on ESG matters. It also reinforces confidence in Kuwait’s capital market and supports the country’s long-term sustainable economic development.

The 2026 ESG Disclosure Guide has been prepared in accordance with the requirements of the Executive Bylaws of the Capital Markets Authority (CMA), particularly Article (1-17-3) of Book Twelve (Listing Rules), which stipulates that Boursa Kuwait develop a comprehensive guide to assist listed companies in the preparation of sustainability reports and takes into account the recent CMA requirement for companies listed on the Premier Market to disclose sustainability reports starting in 2026 for the 2025 financial year.

In addition, the guide reflects the latest updates to the Boursa Kuwait Rulebook related to sustainability requirements and integrates internationally recognized sustainability reporting standards and frameworks, including the disclosure standards issued by the International Sustainability Standards Board (ISSB) under the IFRS Foundation, particularly IFRS S1 and IFRS S2, which represent the emerging global baseline for sustainability reporting.

The 2026 edition enhances the clarity and structure of the guide while aligning it with global ESG reporting practices, while maintaining its advisory nature for listed companies and encouraging them to adopt the practices outlined in the guide to support their competitiveness and meet the expectations of global investors. It also expands several ESG indicators and metrics, providing practical guidance on emerging topics such as climate scenario analysis, transition planning, and the disclosure of indirect emissions (Scope 3). These additions aim to further integrate sustainability practices within corporate governance frameworks.

Expanded guidance is provided on materiality assessments, enabling companies to identify and prioritize ESG issues that have the greatest impact on their operations and stakeholders. This supports the preparation of sustainability reports that focus on key topics from a financial perspective and in terms of their impact on society and the environment, reflecting the concept of double materiality.

The guide also encourages companies to reference internationally recognized sustainability frameworks and standards, clearly define the scope and boundaries of disclosures and outline the methodologies used, along with the governance structures and oversight mechanisms in place for sustainability-related matters.

The issuance of the 2026 ESG Disclosure Guide forms part of Boursa Kuwait’s broader efforts to support the objectives of Kuwait Vision 2035 and the national development plan, which aim to achieve sustainable and balanced economic growth alongside social progress and environmental protection, as the guide introduces an initial set of corporate sustainability indicators aligned with the priorities of Vision 2035 and Kuwait’s commitment to achieving carbon neutrality by 2060. These indicators are aligned with internationally recognized frameworks, including the Global Reporting Initiative (GRI) standards and the United Nations Sustainable Development Goals (SDGs).

Boursa Kuwait has continued to play a pivotal role in promoting sustainability concepts within capital markets since joining the United Nations Sustainable Stock Exchanges (SSE) initiative in 2017, which aims to strengthen collaboration between stock exchanges and market participants while advancing ESG practices.

Through this updated guide, the exchange remains committed to supporting listed companies in the adoption and disclosure of sustainability practices, beginning with a focus on the topics most material to companies’ operations and stakeholders, with the scope and depth of disclosures expanding over time.

This approach helps enhance transparency, improve risk management practices and support sustainable long-term financial performance. It also strengthens the attractiveness of the Kuwaiti capital market for sustainable investment and aligns it with growing global trends toward integrating sustainability considerations into business strategies and investment decision-making in capital markets.

About Boursa Kuwait:

The establishment of Boursa Kuwait in 2014 marked the first step in the privatization project of the Kuwait Stock Exchange, which was founded in 1977 as the first exchange in the Gulf Cooperation Council region and was reorganized in 1983 as an independent financial institution. The transitional phase began in 2016, with Boursa Kuwait officially assuming the responsibilities and operations of the Kuwait Stock Exchange, replacing it with an official license in the same year after the successful completion of the transitional phase. This ensured that Boursa Kuwait developed the infrastructure and operated according to best practices and international standards. It commenced the creation of an advanced, reliable trading platform built on efficiency, credibility, and transparency to serve all asset classes with a focus on the interests of traders and the national economy.

Boursa Kuwait has undertaken various market reforms as part of its comprehensive plans to enhance it in several stages. It succeeded in introducing innovative investment tools, enhancing transparency, and restructuring the market to increase its liquidity and competitiveness, based on its mission-focused strategy, which emphasizes developing the market to meet international standards. The company's developmental and improvement efforts have also contributed to the reclassification of the Kuwait market as an «emerging market» among key global index providers, enhancing Kuwait's position as a leading regional financial center.

In a pioneering step in Kuwait's privatization field, the privatization of Boursa Kuwait was successful, conducted in two stages. The first stage was in February 2019 when a consortium of Kuwaiti investment companies and a global exchange operator won the privatization bid, acquiring a 44% stake in the company.

In December 2019, the privatization process was completed through the public offering of a 50% stake owned by the Capital Markets Authority to Kuwaiti citizens, with the offering oversubscribed by more than 850%. Boursa Kuwait is listed on the «Premier Market» under the name «Boursa».

For further information, please contact:
Ahmad Rashed Alowaish
PR and Media Manager - Boursa Kuwait
Email:           aalowaish@boursakuwait.com.kw