The Central Bank of Kuwait published a report examining how environmental, social and governance risks can transmit into traditional financial risk categories, emphasizing the integration of sustainability considerations into financial institutions’ governance and risk management frameworks, stronger disclosure and transparency, and the role of central banks and supervisors in supporting financial sector resilience.
Central Bank of Kuwait assesses ESG risk management and financial stability implications
The Central Bank of Kuwait assessed how ESG risks can affect traditional financial risks and institutions’ operational sustainability. It emphasized integrated governance, risk management, disclosure and supervisory action to support financial stability.