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Challenge
Our client set an ESG strategy to reduce its emissions among other targets, including developing a sustainable finance framework.
Solution
RSM developed a comprehensive strategic framework to manage and integrate ESG factors into the bank’s business operations.
Success
RSM’s helped the bank to achieve higher S&P and MSCI ratings and enhance its reputation, which helped to attract investment and build trust with stakeholders.
Client overview:
RSM’s client is a leading Sharia-compliant financial institution with operations in Kuwait, the UK, and Dubai and over 2,000 employees. The bank has 45 service branches across Kuwait, with 6 dedicated branches for specialist services. Our client has set an ESG strategy to reduce its emissions, among other targets, including developing a sustainable finance framework.
Background:
RSM was engaged to enhance the client’s sustainability performance, identify and manage risks, attract investment, and build trust with stakeholders.
Our project objectives:
- Measure and disclose the bank's ESG and economic impacts.
- Evaluate the client's sustainability practices and identify areas for improvement.
- Develop a comprehensive strategy for managing and integrating ESG factors into the client's operations.
- Provide guidance and assistance with the aim of improving the client's ESG performance and ultimately to achieve higher S&P and MSCI ratings.
Our approach:
RSM adopted a structured approach to achieve the project objectives:
- ESG maturity assessment: RSM conducted an assessment to advance and improve the bank's performance by addressing its current state findings and analysing existing gaps to achieve sustainable progress.
- Sustainability reporting: RSM collated three consecutive sustainability reports to measure, disclose, and hold the bank accountable for its ESG performance and the associated economic impacts.
- Strategy development: Leveraging the insights from the maturity assessment and sustainability reports, RSM developed a comprehensive strategic framework to manage and integrate ESG factors into the bank’s business operations.
- ESG rating support: RSM provided ongoing advice and guidance to the bank to improve ESG performance and achieve higher S&P and MSCI ratings.
Challenges:
- Aligning the bank's operations with international sustainability standards: Ensuring compliance with a complex set of reporting standards across all operations can be complex and resource-intensive for banks, while obtaining accurate and consistent data from multiple sources and across different geographies can be a significant challenge. RSM’s dedicated ESG and sustainability team was established to oversee the implementation of standards, coordinating data collection, and ensuring compliance across the organisation.
- Unique operations and stakeholder expectations: Banks have a wide range of stakeholders, each with varying expectations regarding ESG priorities and initiatives, making it challenging to develop a one-size-fits-all ESG strategy that meets these expectations under the unique operations of an international bank. RSM’s wealth of experience working with diverse financial services clients and stakeholder groups enabled the client to meet its stakeholders’ expectations and develop a strategy that match the client’s unique needs.
How success was measured
- Transparency and accountability: RSM helped the bank to build trust with its stakeholders and enhance its reputation in the market by providing a robust framework for reporting its ESG performance.
- Continuous improvement: RSM’s ESG maturity assessment enabled the bank to strategise and prioritise its ESG performance, addressing areas requiring action and sustaining performance in non-gap-related areas.
- Strategic governance: The ESG strategy framework implemented by RSM helped the bank to identify and manage risks, build resilience, seize opportunities related to sustainability, attract and retain talent, build trust with stakeholders, and create a platform for sustainable financial growth.
- Improved ESG ratings: RSM’s ESG rating support helped the bank to improve its ESG performance, achieve higher S&P and MSCI ratings, and enhance its reputation, which helped to attract investment and build trust with stakeholders.
Creating a unique offering
Through the development of a comprehensive sustainable finance framework and strategic guidance on enhancing sustainability performance, the RSM team in Kuwait helped our client navigate complex ESG challenges and positioned it as a leader in sustainable finance in the region—ultimately driving stakeholder trust, attracting ethical investments, and building a strong reputation for responsible banking.
