Boursa Kuwait Strengthens ESG Reporting with Updated 2026 Disclosure Guide for Listed Companies
Kuwait City: Boursa Kuwait has unveiled an updated version of its Environmental, Social and Governance (ESG) Reporting Guide, which incorporates the latest advancements in ESG reporting at both local and international levels. This update is part of the exchange’s ongoing commitment to enhance transparency and assist listed companies in improving the quality of their ESG disclosures, aligning with international best practices. The initiative aims to contribute to the long-term sustainability of the Kuwaiti capital market.
Comprehensive Framework for ESG Disclosure
The revised guide serves as a detailed reference framework, allowing listed companies to present their sustainability practices and performance in a clear, structured, and transparent manner. This is essential for meeting the increasing demands from investors, regulators, and stakeholders for reliable and comparable ESG information. The guide is designed to bolster confidence in Kuwait’s capital market and support the nation’s sustainable economic development.
The 2026 ESG Disclosure Guide has been developed in accordance with the Executive Bylaws of the Capital Markets Authority (CMA), specifically Article 1-17-3 of Book Twelve (Listing Rules). This article mandates Boursa Kuwait to create a comprehensive guide to aid listed companies in preparing sustainability reports. The guide also addresses the recent CMA requirement for companies listed on the Premier Market to disclose sustainability reports starting in 2026 for the 2025 financial year.
Alignment with International Standards
The updated guide reflects the latest revisions to the Boursa Kuwait Rulebook concerning sustainability requirements. It integrates internationally recognized sustainability reporting standards and frameworks, including the disclosure standards issued by the International Sustainability Standards Board (ISSB) under the IFRS Foundation. Notably, it incorporates IFRS S1 and IFRS S2, which are emerging as the global baseline for sustainability reporting.
The 2026 edition enhances the guide’s clarity and structure while aligning it with global ESG reporting practices. It maintains its advisory nature for listed companies, encouraging them to adopt the outlined practices to bolster their competitiveness and meet the expectations of global investors. Additionally, the guide expands several ESG indicators and metrics, offering practical guidance on emerging topics such as climate scenario analysis, transition planning, and the disclosure of indirect emissions (Scope 3). These enhancements aim to further embed sustainability practices within corporate governance frameworks.
Focus on Materiality Assessments
The guide provides expanded guidance on materiality assessments, enabling companies to identify and prioritize ESG issues that significantly impact their operations and stakeholders. This approach supports the preparation of sustainability reports that focus on critical topics from both financial and societal perspectives, reflecting the concept of double materiality.
Moreover, the guide encourages companies to reference internationally recognized sustainability frameworks and standards. It emphasizes the need to clearly define the scope and boundaries of disclosures and outline the methodologies employed, along with the governance structures and oversight mechanisms for sustainability-related matters.
Supporting Kuwait Vision 2035
The issuance of the 2026 ESG Disclosure Guide is part of Boursa Kuwait’s broader strategy to support the objectives of Kuwait Vision 2035 and the national development plan. These initiatives aim to achieve sustainable and balanced economic growth alongside social progress and environmental protection. 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 consistent with internationally recognized frameworks, including the Global Reporting Initiative (GRI) standards and the United Nations Sustainable Development Goals (SDGs).
Boursa Kuwait has played a crucial role in promoting sustainability concepts within capital markets since joining the United Nations Sustainable Stock Exchanges (SSE) initiative in 2017. This initiative aims to strengthen collaboration between stock exchanges and market participants while advancing ESG practices.
Commitment to Sustainable Practices
Through this updated guide, Boursa Kuwait reaffirms its commitment to supporting listed companies in adopting and disclosing sustainability practices. The focus begins with the most material topics relevant to companies’ operations and stakeholders, with the scope and depth of disclosures expected to expand over time.
This approach enhances transparency, improves risk management practices, and supports sustainable long-term financial performance. It also increases the attractiveness of the Kuwaiti capital market for sustainable investment, aligning it with global trends toward integrating sustainability considerations into business strategies and investment decision-making.
About Boursa Kuwait
Boursa Kuwait was established in 2014 as part of the privatization project of the Kuwait Stock Exchange, which was founded in 1977 as the first exchange in the Gulf Cooperation Council region. The exchange was reorganized in 1983 as an independent financial institution. The transitional phase commenced in 2016, with Boursa Kuwait officially assuming the responsibilities and operations of the Kuwait Stock Exchange, receiving an official license in the same year after successfully completing the transitional phase. This transition ensured that Boursa Kuwait developed its infrastructure and operated according to best practices and international standards.
Boursa Kuwait has implemented various market reforms as part of its comprehensive enhancement plans. The exchange has introduced innovative investment tools, improved transparency, and restructured the market to increase liquidity and competitiveness. These efforts have contributed to the reclassification of the Kuwait market as an “emerging market” among key global index providers, solidifying Kuwait’s position as a leading regional financial center.
The privatization of Boursa Kuwait was executed in two stages, with the first stage occurring in February 2019 when a consortium of Kuwaiti investment companies and a global exchange operator acquired a 44% stake in the company. The privatization process was completed in December 2019 through a public offering of a 50% stake owned by the Capital Markets Authority to Kuwaiti citizens, which was 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
As reported by www.zawya.com.
