Kuwait Finance House (KFH) Group of Companies

Transcription

Corporate
Sustainability
Report
2010
Corporate
Sustainability
Report
2010
4 I KFH Corporate Sustainability Report
CEO
Message
In an ever-changing world, we at
KFH wish to continue to strengthen
our commitment in displaying a
leading role working under Shariah
principles on the global stage.
Striking the balance between the
sound traditions of Shariah with
the elastic conditions of modern
markets, makes us unique, and
indeed resilient, to the turbulence
seen in the financial industry.
The overall strategy is clear and our
corporate values are the same as
when we first started: uphold Islamic
Shariah principles, support ongoing
initiatives in the global Islamic
financing industry and participate
in assisting the socio-economic
endeavors of local communities.
I am proud that we are the first
Islamic Bank to release a Corporate
Sustainability Report that is based
on international standards, and
wish to continue to see KFH break
the boundaries for Islamic Banks on
the global stage, going above and
beyond stakeholder expectations.
Sustainability is not a new concept
in the Islamic World. Throughout
the corridors of our KFH offices,
you will hear the phrase “E’mar Al
Ardh” (“meaning developing the
Land”) repeatedly. This is taken
from the Holy Quran (2:30), when
it is told about Adam for the reason
of building the land ((Behold, thy
Lord said to the angel: I will create
a vicegerent on Earth)). We use
the term “E’mar Al Ardh” to relate to
the establishment of all our projects
which contribute to humanity.
Examples of these include our
work in Durrat Al Bahrain, Al Zour
Chalets for people with disabilities;
Muthanna Complex, our Addiction
Treatment Hospital, and in our
support of the Ministry of Health
and Ministry of Education, to name
a few.
We have more than an economic
role to fulfill in society and we fully
realize that how we do business
has a direct effect on the world
around us. We also believe that
by promoting the sustainability
of our society we are ensuring
sustainability of KFH itself. It is this
belief that leads us to take into
account a range of social, ethical
and environmental considerations.
We look towards a better and
brighter future in Kuwait and
beyond, where we wish to play a
fundamental role in achieving just
that. Today we are championing the
sustainable higher values of Shariah
principles, which are integrated
at the core of the KFH business
model.
With offices spanning three
continents, we seek to put in
motion economic, social and
environmental change to people’s
lives. Through this report, we will
provide the reader with examples
of actions we have taken in 2010
from our head office in Kuwait,
in addition to our subsidiaries in
Bahrain, Malaysia and Turkey. We
also will report on the achievements
of our local subsidiaries, Al Salam
International Hospital, International
Turnkey Systems and Aviation
Lease and Finance Company
(ALAFCO).
Sincerely,
Mohammed Sulaiman Al-Omar
KFH Corporate Sustainability Report I 5
A Sustainable Vision
for the State of Kuwait
For 50 years, an Independent State
of Kuwait has boomed from its
humble beginnings, demonstrating
national resilience and strength.
Considerable effort has been
made to fulfill various stipulations
of the Millennium Development
Goals over the last decade, where
the State of Kuwait has made
significant strides in achieving
goals such as universal primary
education, promoting gender
equality and a global partnership
for development. Today, the State
of Kuwait is heralded for its high
standard of living, healthcare, and
education and job opportunities.
Kuwait currently has a relatively
low unemployment rate of 1.6%,
coupled with a high literacy rate
at 94%. All births since 1993 have
been attended by skilled medical
professionals. The continued
sustainability of our nation’s
progression is a priority for us, as a
prosperous Kuwait is a prosperous
KFH.
In line with Kuwait’s Vision 2035
reform agenda, KFH strives to
go beyond economic initiatives,
strengthening skills of the Kuwaiti
people and improving quality of
life. As outlined in the 2035 Vision,
we wish to have a deeply humane
and tolerant society on the path
to making Kuwait a centre of
modern thought and dialogue. We
also wish to look forward in our
implementation of Vision 2035,
and its comprehensive range of
reforms. This includes:
1. Reviving Entrepreneurship in
Kuwait’s Economy, where KFH
can help in reducing the red tape
and making Kuwait a country where
opening, operating and terminating
a business is simple. We also can
improve access to land developing
a transparent and fair land market.
We can join in creating fair and
equal opportunities in markets.
2. Leveraging Kuwait’s natural
resources
and
privileged
geographic
position
by
continuously growing financial and
business services in Kuwait, on the
road to becoming a specialized
financial hub.
3. Developing human capital
and
creating
sustainable
professional
opportunities
in being part of the reform of the
labor market making the private
sector employment welcoming
to Kuwaitis. We wish to change
the dynamics of the labor market,
by motivating young Kuwaitis in
the professional world. Through
our subsidiaries like Al Salaam
International Hospital and beyond,
we can play a part in achieving
a world class healthcare system
keeping our population healthy
and stimulating behavioral change.
We also consider ourselves
stewards in Kuwait’s environment
is protected for all the people living
in Kuwait and thus foster green
development in the region.
Kuwait Finance House is taking a
key step in exploring its alignment
with sustainability principles, and
it is our ambitious task that the
sustainability of our country is part
of our daily agenda of each day
we work. Back in 1977, we were
the pioneer bank operating in
accordance with Islamic Shariah.
Today, we are proud to be the First
Islamic Bank to embark upon
globally-recognized corporate
sustainability reporting.
The Spirit of
Sustainability
"Murabaha"
trade with
markup or
cost plus sale
"Ijara"
"Musharakah"
profit and loss
sharing
renting for
beneficial use
What sets
us apart:
Islamic
Banking
"Mudharaba"
profit sharing
agreement
"Sukuk"
islamic bonds
"Istisna'a/
Parallel
Istisna'a"
Other Shariah
contracts
"Salaam/
Parallel Salaam"
deferred sales
contracts
project
finance
Kuwait Finance House is a Bank
which operates under Shariah
principles. Islamic banking refers
to a system of banking consistent
with religious law or “Shariah”,
which is guided by Islamic Principles
on Economics. We believe that
the over-arching views of Islam
ring closely to ethical, social and
environmental values found in
sustainability,
making
Islamic
Banking intrinsically aligned to
Corporate Sustainability. We have
accomplished a critical review
of our functions and initiatives in
accordance with Global Reporting
Initiative guidelines to ensure our
current initiatives are in line with
globally
accepted
principles,
and have identified improvement
opportunities so that long-term
sustainability of the land is promoted
within the KFH Group.
Islamic Finance and Economy is
based on specific features.
• It is transparent: Islamic Shariah
allows all economic activities in the
framework of protecting public
interest and safeguarding it.
• It is realistic: Islamic Finance fulfills
all the needs of real life. This is why
we find that Islamic Shariah does
not prohibit transactions except
those involving injustice.
Islamic ethics and morality, it is
outlawed.
The cornerstone of Islamic banking
and finance is fairness and mutually
beneficial relationships. We at KFH
provide services that exemplify
those values. Islamic banking by
default has the ability to position
itself with ethical values based
on the framework of Shariah. A
number of services have been
modernized and standardized
to meet the various needs of
customers, while maintaining the
ethical boundaries embodied in
the tenets of the Islamic faith.
• It is ethics based: Man may
make profit from doing business.
However, when this runs against
So exactly how are we
different?
Financing
Based on the principle that funds do not generate funds, unless they are coupled with an activity or work.
Credit
Murabaha is used, whereby a Murabaha-based credit is opened with the bank. The bank owns the commodity and then sells it to the customer by way of Murabaha.
Financing
Actively encourage entrepreneurs by funding small enterprises by way of partnerships that end with ownership. Islamic bank loans are extended to other banks without taking or giving interest.
Property
Qur’anic rule: “If the debtor is in difficulty, grant him time till it is easy for him to repay.” However if he is procrastinating, the bank applies Shariah rules to guarantee its right, but without resorting to interest.
Investment of funds
Funds must be invested in lawful areas that achieve social and
economic development. Areas outlawed by Shariah must be avoided. The capital is invested on a partnership basis between the bank or entrepreneur and the capital provider.
Many factors of Shariah compliant finance contribute to our success. It is safe to say that Islamic finance is in a
relatively safer position compared with conventional finance, by virtue of being asset-backed. Therefore, the
concept of sustainability is not new to Sharia compliant banking as scholars have long promoted the importance
of environmental conservation. Islamic banks can already tap into key sustainability values through their ethical
orientation, where Islamic banks are not only responsible to their immediate shareholders, but owe a fiduciary duty
to society as a whole.
Doing What’s Right
requires us to look at five sustainability pillars to give us a focused view of
our 2010 achievements and will allow us to measure future progress in
meeting KFH’s goals and aspirations.
Our Customers
We continue to strive the bank’s role in innovation
and service excellence by focusing on the quality
of our products and services to our clients, enabling
maintained and long term relationships with
customers based on profit sharing, mutual trust
and understanding. By providing Shariah products
to our clients, we believe that we are also adding
sustainability value to our business.
Our Principles
Kuwait Finance House (KFH) is a pioneer of the
banking phenomenon known as Islamic Finance
or Shariah compliant banking. We were the first
Islamic bank established in the State of Kuwait and
today we are one of the foremost Islamic Financial
Institutions in the world. In this report we discuss how
our principles help us to become a more sustainable
bank.
Our Deeds
Outside the scope of business, community
development has long been a priority in KFH’s
activities, where we want to make a positive
contribution to our society. These activities humble
KFH, and touches upon our inherent principles.
Our People
We foster a safe, inclusive and stimulating working
environment for our employees and remain
committed to ensuring that our system of labor
relations accompanies the bank’s organizational
developments and contributes to building a mutual
identity and culture.
Our Environment
We believe that mankind is the steward of his
environment. We aim to conduct our business so
that negative impact to the nature surrounding us is
minimized as much as possible by looking for ways
to stimulate sustainable innovation and promote the
use of our natural resources efficiently.
Using this report:
Our sustainability pillars are denoted by their subscribed markers, which are used throughout the pages
of this Corporate Sustainability Report, showing exactly where they are applicable in our activities. To
assist in navigating through the report, you will also find the following symbols:
Indicates reporting on our KFH subsidiary performance
Indicates Sector/Industry focus sections, with deeper analysis of our subsidiary’s performance
Indicates an employee interview
Contents
Talking Business19
Communication Channels26
The Workplace31
Community39
Global Stewardship46
KFH through
the years
Kuwait Finance House is
established in the State of
Kuwait, being the first bank
operating in accordance
with the Islamic Shariah
Principles
1977
KFH new headquarters
complete and ready for
business
1986
A total number of 10 ATMs
begin operation in State of
Kuwait
1987
New head office
construction begins to
accommodate ambitious
growth plans
1980
KFH Turkey (Kuveyt Türk) is
founded
KFH car showroom opens
1989
Participate in establishment
of new banks and
companies in GCC
countries, particularly Dubai
Islamic Bank and Bahrain
Islamic Bank
KFH Turkey completed
its first mass housing
project, Huzur Sitesi, and
delivered the units to the
homeowners
1994
In recognition of its
contributions to exports,
the Istanbul Textile
& Apparel Exporters
Association awarded KFH
Turkey a gold medal
1995
KFH Group Celebrate 20th
Anniversary and Offices
open in USA and Germany
to import used cars
1997
KFH Turkey becomes the
first interest-free financial
institution to obtain the
ISO 9001-2001 Quality
Certification in Europe
2000
1981
Establishment of KFH
Bahrain
Project to provide more
residences in State of
Kuwait begins
1982
KFH Turkey becomes among
the first private financial
institutions to introduce
telephone banking
1992
KFH Pioneers a deal
combining Islamic banks
and conventional banks
in financing of Airbus for
Emirates Airlines
2002
KFH becomes the major
stakeholder of
Al Salam Hospital
2004
Malaysia
2005
Research, the world’s
first Islamic investment
research arm
2007
Expansion of KFH to
Australia through KFH
Malaysia Office
2008
KFH Turkey establishes a
financial services branch
in Mannheim, Germany a
subsidiary in Dubai and a
Kazakhistan Legation.
2009
Awards
& Milestones 2010
•
Award for Best Islamic Bank in Kuwait by Asiamoney
•
KFH Turkey wins Most Innovative Product from Islamic
Finance News
•
KFH Bahrain wins Best Investment Product for
Menatelecom
•
Award for Best Islamic Real Estate Finance Provider by
Global Finance
•
Award for Best Islamic Finance bank in the GCC by Global
Finance
•
Award for Best Islamic Finance Bank in Kuwait by
Global Finance
•
KFH Kuwait wins Citbank award for leadership and
excellence in electronic payments
•
First of its kind, the Gold Investment Fund is launched
which provides a Sukuk transaction of US$100 million
•
KFH Kuwait develops Al-Ousra card, displaying first of its
kind creativity and flexibility targeted towards families
•
Kuwait Finance House (Malaysia) Berhad (KFHMB)
appointed as the Mandated Lead Arranger for the
proposed issuance of a two-year Ijarah Sukuk of USD100
million by the Nomura Group
•
Award for Best Islamic covered card from
Banker Middle East
•
Award for Best Consumer Internet Bank in Kuwait by
Global Finance
•
KFH selected among Safest Banks in the Middle East,
awarded by Global Finance
•
Best Islamic Bank Website in the Middle East
•
Best Investment Bank 2010 from Banker Middle East
•
Best Islamic Bank in the Middle East from EMEA Finance
•
Award for Outstanding Contribution to Islamic Finance by
Failaka-Amanie Symposium
•
Award for Best Islamic Research Company by Islamic
Finance News Awards Poll
•
Award for Contribution to Islamic Finance Research by
International Islamic Finance Forum
Our Global
Presence
KFH Board Committees
Fatawa and Shariah Board
KFH Board
Industry Sectors
Banking Business Units
KFH Kuwait
Financial Sector
KFH Bahrain
KFH Turkey
KFH Malaysia
Real Estate
Liquidity Management
House
Muthanna Investment
Company
AREF Investment Group
Saudi Kuwait
Finance House
Sharjah Islamic Bank
First Takaful Insurance
Company
Al Enma’a Real
Estate Company
Al Raya Global Real
Estate Company
Sokouk Real Estate
Development Company
Al Nakheel United
Real Estate Company
IT
International Turnkey
Systems
Healthcare
Al Salam
International Hospital
Aviation
ALAFCO Aviation Lease
and Finance Company
Human Resources
Training
Human Investment
Company
Energy
Development
Enterprises co.
Islamic Research
KFH Research
Baitak Real Estate
Investment Company
Total Branches: Total ATMs: 230
397
KFH Turkey
Branches 161
ATMs
170
KFH Bahrain
Branches 8
ATMs
19
KFH Kuwait
Branches 52
ATMs
186
KFH Malaysia
Branches 9
ATMs
22
Getting to know KFH
and our subsidiaries
2010 ($ '000)
Economic Value Generated
2,624,016
Revenue
2,624,016
Economic Value Distributed
774,849
Operating Costs
325,396
Employee wages & benefits
406,739
Payments to Governments
15,560
Community Investments
26,660
Economic Value Retained
1,849,167
Since the opening of our doors for business, we remain committed to Sharia principles
and values, continuously supporting the ongoing initiatives of the global financing
industry. In the banking sector our activities include:
•Retail banking
•Private banking
•Commercial banking
•Real estate
•Credit and investment services
KFH Bahrain
200,756
Revenue
200,756
176,888
36,942
575
23,868
Since its opening in 2002, KFH Bahrain is 93% owned by KFH Kuwait.
Its main activities are:
•Banking services in compliance with Islamic Shariah
•Management of investment accounts on profit sharing basis
•Islamic finance contracts including retail services
•Services and Communication Sectors
•Real estate investment
KFH Malaysia
145,360
Revenue
145,360
73,913
Operating Costs
38,287
32,317
2,433
876
100% owned since its opening in 2006.
Its Main activities are:
•Islamic finance products
•Investment in real estate
•Corporate finance
71,447
KFH Turkey
360,733
Revenue
360,733
314,772
Operating Costs
210,151
61,436
42,530
655
45,961
97,199
Revenue
97,199
Opened in 1989, and known as Kuveyt-Turk, we currently have 62% ownership.
Its main activities include:
•Islamic banking and financial services
•Investment of funds on a profit/loss sharing basis
•Real estate development
Al Salam International Hospital
84,139
Operating Costs
47,558
35,326
1,053
201
17,037
Owned by KFH, the vision of Al Salam is to expand its leadership in the healthcare
sector in the region, as a benchmark in healthcare industry. Al Salam has received
the Accreditation Canada Certificate, meeting demands of Kuwait's Vision 2035 of
achieving a world class healthcare system. Al Salam provides specialized medical
care in:
•Surgical, critical care, dental
•Diabetes, hypertension and obesity
•Obstetric Gynecology
•Maternal-child and pediatric healthcare
International Turnkey Systems
86,865
Revenue
86,865
76,418
Operating Costs
51,472
22,474
2,473
10,447
97% owned by KFH, ITS is a specialized technical consultancy.
Its main activities are:
•Marketing and Development of hardware and software
Gross income by area
Value Contribution
Payments to Governments 5%
KFH Turkey
2% Community Investments
ITS
Al Salam
KFH Malaysia
KFH Bahrain
KFH Kuwait
51%
Operating
Costs
42%
Employee wages
and benefits
USA
UAE
UK
Australia
Bahrain
Bangladesh
Canada
Cayman Islands
China
Turkey
Europe,
GCC
Germany
Saudi Arabia
Qatar
Kuwait
Malaysia
Residential
Services
Training
Our Global Investments
KFH prioritizes predominantly local investment,
with a total of 36% of our investments focused
in Kuwait. We also primarily concentrate our
investments in the Gulf States, with 18.9% of our
total investment in Saudi Arabia and 10.6% in the
Kingdom of Bahrain. In support of the potential of
emerging markets, we have invested in countries
such as Turkey (8.7%) and China (2.1%). In
distributing our investment as far as Canada and
Europe, we find strength in diversity, giving us a
sustainable model for our assets.
Aviation
Industry breakdown
Real Estate
Banking
Private Equity
Leasing
IT
Commodities/
Trade Finance
Commercial
Investment
Diversified
Health Care/
Transport
Insurance
Industry
KFH is not just a bank. Though we are known as
a financial institution, with 28% dedicated to the
sector, we broaden our scope of industry wisely.
Real Estate and residential investment total 20%
of our share of industries we invest in, where
we focus a lot of our projects in the Middle East.
Our interest in aviation has led us to numerous
accolades, in addition to our interest in energy,
private equity and health care.
Energy/Oil/Gas
Equity
Portfolios
Our dedication to Doing What’s Right is the start of
a continuous journey for Kuwait Finance House and
our subsidiaries. Our mission is “To be the Leading
Islamic Financial Institution in the World by Providing
Competitive and Shariah Compliant Banking,
Financing and Investment Products to Exceed
the Expectations of Our Customers, to Motivate
Our Employees and to Meet the Objectives of Our
Shareholders”
Our Corporate Values state that we:
1) Uphold Islamic principles and values among all
activities of the organization
2) Support ongoing initiatives of the global
Islamic financing industry
3) Participate in and assisting the socioeconomic endeavors of local communities as a
responsible corporate citizen
In the writing of this sustainability report, we
engaged with our stakeholders to identify the most
material topics we can report on today.
In doing so, we have also set ambitious goals
for the future. We are excited to embark on
this path towards economic, social and
environmental change, using our Shariah principles
to guide us there.
Talking Business
Our Shariah Commitment
Our Shariah Principles are what we stand for. They express what we
value, what we believe in and what we aim for. Living through our Shariah
Principles helps us to make decisions that stand the test of time.
Shariah inspired products & services
Al Kheir Charity Card is a unique card to control expenses and help the poor. Every
spend using the Al Kheir card adds a little to help a noble cause, as each time you make a
purchase, KFH donates 0.5% towards those in need to go to Haj and Ummra. This helps
those fulfil their religious duty of visiting the Holy City of Mecca at least once in their lifetime.
With no pre-conditions, this card is available to anyone over 21 years of age. The card is fully
flexible, where there is no need for credit history nor are there any salary restrictions.
Charity donations have never been easier. With the click of a button, our clients can give
back to society by giving those in need online on kfh.com. From the banking services
menu, customers can select a standing order of the amount desired to a list of government
approved charity accounts provided.
KFH Malaysia (KFHMB) introduced an innovative new product for 2011 for Personal Financing-i Hajj and Umrah, which
was designed for Muslim customers to facilitate their pilgrimage. It makes it more convenient for Muslims to realize their
dream of visiting the House of Allah, and fulfilling the fifth pillar of Islam. The KFH Personal Financing-i Hajj and Umrah
package offers attractive rates and financing options to cater to different needs. A high maximum financing limit of USD$
33,000 will enable customers and their immediate family members to perform the pilgrimage with options to include
Takaful premium and personal expenditure in the financing amount.
End-to-end Shariah-based Takaful products and services are provided at competitive rates by our reputable Takaful
partners. KFHMB also collaborates with reputable partners to enable customers and their immediate family members to
perform their pilgrimages at reasonable prices. KFHMB has a full range of Shariah-based products and services provided
to the business sector as well as retail customers. These include KFH Gold Account-i, KFH Automobile Ijarah-i and KFH
Home Financing-i, among others. This is in line with their parent company’s aspiration to be innovative in providing quality
and tailor-made Shariah-based products and services.
ALAFCO Aviation Lease and Finance
Company (K.S.C.C) is an emergent provider
of innovative Sharia-based commercial
aircraft leasing products, which means that
all our financings are Islamic, involve ethical
investing and are equity related, that is, solely
using the genuine asset or the cash-flow it
generates. ALAFCO has pursued a strategy
of organic growth to
Ahmad A. Alzabin
Chairman, Alafco
become a leading leasing company globally. Shariah and Islamic Finance principles set the
definitive rules of conduct in the Company’s dealings, and as such, ALAFCO is committed
to high standards of corporate governance, business integrity and professionalism in all
its activities. ALAFCO has risen rapidly into the niche of a reputable lessor of commercial
aircraft whose focus on value has earned the trust of 18 airlines to date in Asia, Africa the
Middle East and Europe.
Investing differently
We are confident that investing our assets in line with Shariah principles
will keep financial woes at bay, as the recent credit crisis brought
increased socially responsible investing. Our compliance with Shariah
principles is a key and integral feature of our activities and is intended to
provide “peace-of-mind” investment for the investors in order to promote
wholesome Islamic intent.
Negative screening is the practice where an investor seeks to avoid investing in
companies that are involved in sectors or practices deemed unethical and irresponsible.
In negatively screening against practices, say for example gambling, we are able to directly
ensure that the sustainability of our society and family wellbeing are upheld.
The Shariah Way: Our Policy on Investments. Any investment activities in KFH is
guided by the “Fatwa” (ruling) and advice is issued by the Shariah Board when evaluating
investment decisions. The Shariah Board is an independent body overseeing all Shariah
matters and provides views and ruling in relation to the fund’s investment activities based
on the rules and principles of Shariah. This division also periodically inspects the investment
activities of KFH to ensure that the actual implementation of the investments is in compliance
with Shariah rules and principles.
As a rule of thumb, the following activities are classified as non Shariah compliant and thus
we are not involved in companies that are linked to the following:
•
Financial services based on “riba” (interest)
•
Conventional insurance
•
Stock broking or share trading in Shariah non-approved securities
•
Gambling
•
Manufacture or sale of non-halal products
•
Entertainment activities non-permissible by Shariah
•
Other products or services deemed non-permissible and/or ambiguous
All equity investments, with this in mind, must thus adhere to the following criterion:
1. If the intention is to control and to convert the invested company, the companies must
clean up all interest bearing debt or borrowing within a three year grace period.
2. Companies we are invested in, must not deal in interest, neither earned interest, nor
expense interest.
3. Common stock and Islamic finance tools must be the only source of fund or finance to
the invested companies.
Supporting our national economies
It is important to us that countries of our operations benefit and
prosper from our activities. We maintain a healthy and mutuallybeneficial relationship between us and the countries we work in.
This starts at home, in Kuwait, and beyond.
Supporting Kuwait In 2010, the Kuwaiti economy witnessed a number of
developments: the most distinctive being an economic recovery, regaining its
growth pace in 2010-2011 after witnessing a decline in 2009. KFH supported the
Kuwaiti national economy by financing over USD $ 1.8 billion in a variety of markets.
Diyar Al-Muharraq KFH Bahrain are underway in creating affordable housing
in the Kingdom of Bahrain. The project is planned to provide 5,000 units of
housing for residents in Bahrain and is expected to be completed in 4 years.
This facilitates the Bahraini Government’s Economic Vision 2030 which
targets providing 50,000 social/affordable housing units over the next five
years. The Prime location of Diyar boasts a 10 minute ride from the airport
and 20 minutes from the capital. The project, targeted at Bahraini citizens
with a combined household income of BD900, also includes those eligible for
housing aid by Bahrain’s Ministry of Housing, and even provides an increased
housing space of 237 m2 compared to the national average of 170m2.
The vision of the project is to:
Abdulhakeem Yaqoob
Al-Khayyat
Managing Director/CEO
KFH Bahrain
•
Create a fully integrated mixed-use community for the future of Bahrain,
where residents live, work and entertain in a sustainable environment.
•
To become a leading investment zone on an individual and a corporate
level.
•
Provide the opportunity for Bahraini citizens to own and live in affordable
housing units that meet their demand.
•
Become a symbol of progress and pride for the residents and people of
Bahrain.
Supporting local fisherman. Diyar Al Muharraq, being a community for all the
people of Bahrain has fully funded the construction of the Ras Raya Harbor in
Samaheej, a million dollar project which was carried out for the benefit of the
local fishermen. The Ras Raya Harbor is now a modern and fully-equipped
fishing harbor the serves the local fishermen of Muharraq, Galali and Al Deir
areas covering an area of 100,000 square meters and houses nearly 200
fishing boats and 60 dhows. Empowering the local community and mixing
tradition with the contemporary, the harbor functions under the Bahrain
Fisherman Society.
Pavilion Project financed by KFH has resulted in a six-star lifestyle mixed-used real estate development. Located
centrally in the Golden Triangle of Kuala Lampur, the Pavilion is the largest retail mall in the country, attracting tourists
and the local community. It houses the Pavilion Crystal Fountain, a new national landmark, which is the Tallest Liuli
Crystal Fountain in Malaysia endorsed by The Malaysia Book of Records.
In the Kingdom of Saudi Arabia, KFH is responsible for two big real estate projects through Baitek Real Estate
Company and Saudi Kuwait Finance House. Projects located in Dammam and Jeddah provide middle and upper
income housing solution. With a land bank in excess of 2,200 km2 thus ensuring the optimum use of green spaces
for local community.
Diverse views from
KFH
An Interview with
Zakaria
Al Ansari
Position: Dealer | Department: Treasury Department, KFH Kuwait
What made you choose to work at KFH?
I got five job offers after graduating and I selected KFH because I felt that
I got the perfect role fit in treasury which is my preferred career ambition.
The Graduate ‘Forsa’ training program is very systematic and world class
and gave me the right capability to perform and sustain my role in the
banking domain. Moreover, the exposure to other countries and leading
banks as part of the international placement scheme in place at KFH are a
boon to my career and the diverse ideas thrown around in KFH contribute
to its sustainability and longevity.
Do you feel you can take your career as far as you want in KFH?
I am really excited on the opportunities given to me and I am looking
forward to a great career here with KFH. I view the KFH human capital
development process gives me and my peers multiple opportunities to
innovate and contribute to the growth of the bank. The transparent and
open culture gives us free access to the top management giving the right
amount of exposure and builds me confidence during early years of my
career.
What do you think is the key factor in KFH’s sustainability?
The key factor contributing to KFH sustainability is the close family like
environment and the business model based on Islamic Principles. Globally,
Islamic financial products are of high demand and has withstood the
economic volatility, which I see in my highly intensive treasury experience.
What sustainability initiatives would you like to see in KFH in the
future?
I expect KFH to contribute to the Kuwait Development Plan through
the right kind of investments for developing real estate, public utility and
health care. I hope KFH will contribute to the sustainability and prosperity
of Kuwait as a nation as well. In the coming years, KFH is facing increased
competition and should get ahead in through innovative products,
improved efficiency and developing human capital.
Comunication
Channels
Putting our customers first
We continuously strive to meet their needs outside the scope of
banking, finding innovative and sound sustainable methods in their
implementation.
Customer Satisfaction. Our Trust and Satisfaction variables are routinely checked
every two months using the methodology presented by an internationally recognized
research company. KFH Kuwait can state that we are progressively improving
our leading position in customer satisfaction.
Connecting to customers @ International Turnkey Systems
The methods used by ITS are two-fold:
Annually, face-to-face interviews and questionnaires are conducted. In
2008/2009, this yielded a “Satisfactory” result from their customers. The
results for 2010/2011 are ongoing…
Daily, customers can click onto the Online Questionnaire to provide up to the
minute insight on what they think. It was a “Satisfactory” result for 2010 overall.
Feedback mechanisms at
KFH Kuwait
Initiated by the customer:
1) Comments Box
2) Call Centre
3) Dedicated Fax Number
4) KFH Online
5) Interactive Voice Response (IVR)
All customer complaints are directed to respective business units for resolution.
Customer care keeps a track of these complaints which are directed to the respective
business units for resolution, where they must keep up to speed with the service-level
timelines. In ensuring the optimal customer service quality KFH undergoes a Process
redesign to review every customer facing process and implement recommendations
to reduce effort, improve process speed/cost and remove any redundancies. Once
the complaint is resolved, KFH asks for reported feedback on their level of satisfaction
on the complaint resolution.
Initiated by us:
1) Customer Care Questionnaire
A traditional way of doing things, our customer satisfaction surveys are done
periodically using both external and internal resources using a carefully thought out
customer care questionnaire. Using a sample, the customer care form is distributed
and captured in our in-house database and subsequently analyzed for follow-up
action.
2) Mystery Shopper
Mystery shopper visits are conducted annually, covering all branches, show-rooms
and other service locations hired by us to use our retail and commercial banking
facilities. These mystery shoppers are carefully selected to represent KFH’s targeted
customer segments. After the interaction with KFH, our mystery shoppers are given
a tailored questionnaire to answer the level of service quality based on a variety
of aspects, capturing the actual interaction directly at the point of KFH Customer
contact. The answers are logged and audited and are finally sent to the appropriate
management for further action, bringing a unique angle to improving our services to
our customers.
KFH Online
Dedicated Fax
Number
Customer
Care
Questionnaire
Call Centre
"Alo Baitek"
Comments
Box
Interactive
Voice
Response
Addressing
Customer
Satisfaction
at KFH
Kuwait
Mystery
Shopper
Sector Focus
Al Salam International’s Quality Improvement Program aims to provide a coordinated,
objective and systematic approach to organization-wide performance improvement
activities and coordinate the accreditation projects. The quality improvement
program provides a mechanism to plan and measure the processes and outcomes
of patient care and organizational operations. Data is systematically collected for
monitoring and improvement priorities. Findings are utilized in evaluating processes
that may benefit patient outcomes, identify opportunities for providing professional/
personal growth and to evaluate operations.
Dimensions:
•
Client-Centered Services: putting clients and families first.
•
Appropriateness: The degree to which the care provided is relevant to the patient’s clinical
needs, given the current state of knowledge.
•
Availability: The degree to which appropriate care is available to meet the patient’s needs.
•
Accessibility : Providing timely and equitable services.
•
Timeliness: The degree to which the care is provided to the patient at the most beneficial or
necessary time.
•
Safety: The degree to which the risk of an intervention and the risk in the care environment
are reduced for the patient and others, including the health care provider - keeping people
safe.
•
Work life: Supporting wellness in the work environment.
•
Continuity of services: Experienced coordinated and seamless services provided over
time.
•
Effectiveness: Doing the right thing to achieve the best possible results, given the current
state of knowledge.
•
Efficiency: Making the best use of resources to achieve the projected outcomes.
•
Efficacy: The degree to which the care of the patient has been shown to accomplish the
desired or projected outcome(s).
•
Respect and Caring: The degree to which a patient, or designee, is involved in his or her
own care decisions, and to which those providing services do so with sensitivity and
respect for the patient’s needs, expectations, and individual differences.
•
Prevention/Early Detection: The degree to which the risk of an intervention and the risk
in the care environment are reduced for the patient and others, including the health care
provider.
Customer satisfaction surveys are used to provide maximum patient satisfaction
through different methods such as arranging focus groups with regular rounds
and direct interview surveys for patient satisfaction and opinion; written survey
forms which are available all over the hospital; suggestion boxes fixed in all hospital
premises; online surveys through the website, direct mails for inpatients, direct phone
line for suggestion and complaints and a committee for survey analysis.
Reaching out to talk
We search to go above and beyond the call of duty and want to
bridge the gap between business and customer. In doing so we
hope to foster a sustainable relationship that will put us on the right
path in being the most preferred provider for Shariah banking and
services.
Just call us for Shari’a advice. We’re more than just a bank. Through this
initiative spread through general word-of-mouth by our skilled Shari’a Compliance
team, KFH customers are able to call our Shariah Compliance department seeking
islamically-sound advice on questions that go beyond the scope of banking.
Sign language training. In order improve our services to people with speaking
and hearing disabilities, we launched a training course where our employees from
branches, direct sales, commercial finance and automobile services were invited for
training on sign language. The course consisted of two levels, which totaled 75 hours
of training time.
Coaching our communicators. Being the face of KFH, every customer
interaction point is visited by a team of coaching communication experts on a
periodic basis to provide coaching and monitoring on behavior.
Mr. Ufuk Uyan
CEO, CSR KFH Turkey
Harnessing the web by using variety of inventive modes of communication has
proven successful:
Twitter: @KFHGroup Our twitter account has thousands of followers, surpassing
any other bank in the region to date. This regular feedback with the customer
stimulates our ability to meet their needs and answer their queries interacting on an
instantaneous and effective platform.
www.facebook.com/KuwaitFinanceHouse has members, where they can
create discussion boards, post photographs and write on our wall. In 2010, KFH
hosted the Facebook Ramadan competition, being the first Bank to implement such
an event that attracted more than 16,000 people. Draws were set by Ministry of
Commerce, with iPhone prizes given out.
The App Store already has a family of KFH applications, available free of cost. KFH
“Your Home” was introduced and was a pioneering iPhone application, the first of its
kind in the region. The app provides our customers with detailed branch information,
the ability to check their balance and latest transactions, a currency converter, the
Kuwait Stock Exchange Ticker and access to the latest promotions.
KFH Qur’an App was launched in Ramadhan gaining 350,000 downloads in four
months since its launch. The App serves Muslim users with the ability to read and
listen to the Holy Quran in a simple and interactive way, keeping the beauty of the
Othmani font with an easy-to-use directory of Soura & Ayah.
The Workplace
Leveling the playing field
We are continuing to level the playing field as the private
sector becomes more professionalized and service
oriented. Hiring the younger generation locally, as well
as empowering women tops our agenda of achieving a
sustainable and healthy workforce.
Our Graduate Scheme in Kuwait only recruits young Kuwaitis, which
goes hand in hand with Kuwait’s Vision 2035 to increase the youth in the
workforce. In 2010, of all employees in our Kuwait office, we had 62%
Kuwaiti nationals. In our other offices KFH Bahrain had 92% Bahraini
nationals employed, KFH Malaysia had 99% Malaysian nationals
in the workforce, and KFH Turkey had a total of 99% Turkish nationals.
Age distribution across KFH
ITS
Al Salam
KFH Turkey
Less than 30
30 – 50
KFH Malaysia
50+
KFH Bahrain
KFH Kuwait
0%
20%
40%
60%
80%
100%
Meet Mrs Eiman AlHumaidan, our female
board member at KFH
Kuwait. The only female
board
member
of
an
Islamic Bank in Kuwait.
Mother of three, Eman
holds a Bachelor’s degree
in Computer Science and
Statistics
from
Kuwait
University. She is currently
an
acting
Secretary-
General at the Ministerial decree and has work experience in
the fields of journals and information technology. She holds
chairmanship and memberships in a variety of Kuwait’s
committees and is a member of several boards for public benefit,
such as the Autism Society of Kuwait and was a founding
member of the Kuwaiti Association for Quality and Excellence.
She has been honored with several awards, including recently
when she was honored by Sheikh Nawaf Al-Ahmad Al-Jabar AlSabah as the “First Female Leader in the Arab and Islamic World”
Women in KFH Malaysia
Our first female Chief Executive was
appointed in 2010 by KFH Malaysia. Puan
Jamelah Jamaluddin is responsible for the bank’s
operations in Malaysia and the Asia Pacific.
This marks her second tenure at KFH, where she
served as the bank’s deputy chief executive officer
since 2005, steering the corporate investment
banking division. An experienced Islamic banker,
having been in the financial industry for 25 years,
Puan Jamelah will play a pivotal role as the new
CEO of the Bank, in delivering the strategy for the
Bank’s operations in Malaysia and in the AsiaPacific region.
Salary Grade
Ratio
Assistant Director- Chief Officer
3.4 : 1
Assistant/Senior Manager
1.5 : 1
Associate/Senior Executive
0.6 : 1
Non-Executive
0.9 : 1
Average
1.5 : 1
Male : Female salary ratio for KFH
Malaysia
In hiring our staff, we continuously seek to empower women and provide them with
competitive benefits. We have an Equality in salary, where in KFH Kuwait, our men and
women have absolutely no difference in their salary for their respective grades. We
value all our employees equally and appreciate their efforts throughout all employee
categories. This is why we make sure that all our treated equally, regardless of their
gender.
Male:Female ratio across KFH
ITS
Al Salam
KFH Turkey
Male
KFH Malaysia
Female
KFH Bahrain
KFH Kuwait
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
KFH employees participate in traditional pearl diving trip, Kuwait City
Keeping track of our progress:
performance data
We keep our books in order, and keep the status of our
people in the workplace constantly updated and checked
throughout our operations worldwide and sector-wide.
Breakdown of workforce by contract
KFH Kuwait
Full-time
Part-time
Total
2204
KFH
KFH
KFH
Bahrain
Malaysia
Turkey
267
588
2837
Al Salam
ITS
Total
880
2419
9195
0
1
0
0
5
0
6
2204
268
588
2837
885
2419
9201
Breakdown of workforce by age
KFH Kuwait
Less than 30
30 – 50
50+
KFH
KFH
KFH
Bahrain
Malaysia
Turkey
Al Salam
ITS
Total
758
141
139
1509
223
928
3698
1220
119
393
1309
566
1402
5009
226
7
26
19
91
89
458
KFH
Al Salam
ITS
Total
Gender breakdown in workforce
KFH Kuwait
KFH
KFH Malaysia
Bahrain
Turkey
Male
1801
183
276
2436
282
2107
7085
Female
403
84
282
401
598
312
2080
Diverse views from
KFH
An Interview with
Adel
Al Were
Position: Deputy Manager General Services | Department: Human Resource & Services, KFH Kuwait
How is KFH different from other organizations you have worked
with?
Being a small country which is a close community of families, Kuwait
values Trust, Loyalty and Truthfulness as the key characteristics that are
important to the sustainability. Kuwait Finance House upholds these virtues
and the entire KFH Family feeling is the bonding factor that will ensure KFH
sustainability in the long run.
Name a key memory from your time at KFH
During the period of emergency at the start of 1990’s, KFH demonstrated
commitment to its employees by distributing gas masks and was the first
bank in the world to do so. I played a key role in finding these gas masks,
and was happy to use my military background to attain them. It displayed
how KFH cares for its employees as members of a family.
Do you think KFH gives employees the right recognition for their
work?
I do. KFH recognizes the efforts of the employees through an appraisal
system and reward scheme with different kinds of rewards including
appreciation letters, gifts and bonus awards. I myself started my career
here as Security Manager, but a patient attitude I quickly gained recognition
of my leadership skills, where I now lead many functions including Security
Systems, Procurement, Maintenance, Cleaning and Communication.
What advice do you have for those starting their career?
Be patient, and be open, as you never know where your career will
take you. For me, I started my career with the Armed Forces, in the elite
Amiri Brigade, where I rose to rank of Amiri Brigade Commander after
graduating from General and Staff College, Levenworth, Kansas. After my
different roles in the Military Attaché in Paris, I continued to acquire skills
and can speak German, English and French apart from Arabic. Now at
KFH, I am able to apply the skills in leadership and communication in my job
day in and day out.
What sustainability initiatives would you like to see in KFH in the
future?
KFH philosophy is based on Islamic principles is of one sustainable family
built on the pillars of Trust, Loyalty and Truthfulness. I wish to see this
continue and for our unity in the workplace to grow.
Sector Focus
Breakdown
of
employees
by
category
Senior Management
Middle Management
Executive
0%
20%
Employee
40%
60%
benefits
80%
Consultants
100%
given
in
2010
Annual Leave
Health Insurance
Social Security for Nationals
0%
20%
40%
60%
80%
100%
Maternity Leave
Mohammed Al Fouzan
Chairman, International
Turnkey Systems
Up to
25%
of workforce
is represented
in formal joint
management
worker health
and safety
committees.
97%
A total of
In 2010,
were given
of all goods and
career &
supplies were
performance
obtained from
reviews in 2010,
local sources, a
more
than
half
compared with
43% increase
79% in 2008.
since 2006.
of employees
45%
of the senior
management
are local
nationals,
an increase of
34% in 2007.
Total number of training hours per employee broken down by category
Senior Management
4
Middle Management
11
Lower Management
13
Consultants
20
Contract Labor/Junior Staff
16
Mr Khaled AlSaeid
CEO International Turnkey
Systems
Investing within
Making sure that our employees are getting the most out of their
job is a fundamental part of strengthening KFH’s commitment to its
people. We wish to inspire, promote and motivate our staff so they
reach their full potential
In 2010,
there were
2.8
number of sick days
on average per
employee in both
KFH Kuwait and KFH
Malaysia
Employee benefits. Our full-time employees enjoy a 15% bonus every year. We also cover
100% of their healthcare insurance and dental, and 50% of the healthcare insurance of their
family (wife and up to 3 children). We provide transport allowance to Grade 3 and above, and
housing allowance for Grade 13 and above. For our Kuwaitis, we cover their pensions.
Career appraisals. All KFH Kuwait’s employees who have worked over 6 months with us
are given an annual performance appraisal review using a 7 Tier Grading System, as well as a
training needs analysis for the upcoming year. The approach to determine the need for training
is done using an Oracle System where Managers provide their inputs. The rate of participation
from managers was above 90%, which is higher than the previous three years. Such processes
support our staff throughout their career, tailoring to their specific needs and gives us a great
picture of their progress.
Training. At KFH Kuwait our training programs include self-study, in-house training, external
learning, coaching and e-learning. Our employees have access to a wide range of tools and
skill sets, ranging from complex financial modelling to soft skills such as “thinking on your feet”. In
total, KFH Kuwait invested in excess of $1m on staff training alone in 2010, excluding eLearning
initiatives and on the job training.
Average hours of training
KFH Kuwait
KFH Bahrain
KFH Malaysia
KFH Turkey
Al Salam
ITS
10 - 30
10 - 30
10 - 30
30+
10 - 30
10 - 30
100%
100%
100%
100%
100%
97%
per employee
Employees receiving
annuals performance
reviews
2010 Survey Staff Satisfaction at Al Salam International Hospital
•
53% of staff plan to continue employment for more than five years
•
86% of staff agreed and strongly agreed Hospital Accreditation is an added
value
•
87% agreed and strongly agreed that they maintain a good working
relationship with other staff
•
67% agreed that policies are clearly communicated to staff
On the right path
Making sure that our employees are getting the most out of their
job is a fundamental part of strengthening KFH’s commitment to its
people. We wish to inspire, promote and motivate our staff so they
reach their full potential.
Our Shariah training given to new joiners ensures our employees at all levels are
exposed and aware of subjects at the heart of KFH’s business model. In our Kuwait
office, we also give our people the chance to achieve “Certified Islamic Banker”
status.
The Shariah curriculum offered by KFH in 2010, where at least once a year each
employee must attend one Basic Understanding course.
Course Name
Mandatory for
Basic Shariah
All employees
Basic Shariah II
All employees
Shariah Advance
Retail, Commercial, Corporate, Investment, Credit Management & Finance
We have our own KFH Shariah-specific materials, “Fatwa” in the form of
textbooks, which are available anytime for our employees, our customers and any of
our stakeholders with detailed explanations on topics such as transactions, currency
exchange, Zakat, insurance and a range of financial instruments.
Our monthly Shariah newsletter is distributed to our employees, featuring the
bank’s latest news and Shariah achievements.
Human Rights. In KFH we adhere to the laws that protect our people. We are
completely compliant with national labor laws. In Kuwait, the Kuwait Labor Law in
the Private Sector (Law no.38/1964), includes special interest in the Human Rights
Committee (HRC) at the National Assembly. The same applies to all our subsidiaries
who ensure full compliance with local labor laws.
Community
Giving back
Giving to charity is preached by every religion of the world, and
is an essential component in KFH’s beliefs and thinking process.
This spirit of kindness and well wishing resonates in our company
culture, where we truly understand the meaning of Zakat: growth and
purification.
Zakat House works closely, hand in hand with KFH, through KFH donations. Giving a
donation of KD3.4 million (more than $12 million USD), Zakat house is able to continue
to provide help for the disadvantaged as it has been doing so since 1982. Zakat
House activities includes giving monthly financial aid, soft loans, health security and
insurance, social assistance and cash donations, all to the underprivileged in Kuwait.
Zakat House also hosts numerous activities in the Holy Month of Ramadan, and
has projects outside of Kuwait such as sponsoring scholars, orphans and building
mosques, schools, water wells and development centers.
Supporting Pakistan Flood Relief with KFH Kuwait donating a total of $2 million
USD. This helped impacted families in Pakistan whose homes and lives were
devastated by one of the worst floods in modern history. KFH Turkey provided on the
ground support by sending staff members to areas in need in Pakistan.
Country Focus
KFH Malaysia
Puan Jamelah Jamaluddin
CEO, KFH Malaysia
Putra Mosque, Malaysia
Ramadhan, the month of giving at KFH Malaysia
•
Contributed ihram garments to Malaysian male pilgrims who are
performing Hajj was given by KFH Malaysia in 2010. Representing
KFH
Malaysia
at
the
event
was
Chief
Executive
Officer,
Puan Jamelah Jamaluddin, who presented the Bank’s contribution of 15,000
pairs of ihram garments worth over $130,000.
•
Contributed to the Ziarah Ramadan Programme with over US$ 36,000 in
conjunction with His Royal Highness Tengku Muhammad Faris Petra, the
Regent of Kelantan. Handover ceremonies were held at 10 selected mosques
in 10 districts in Kelantan, where His Royal Highness Tengku Muhammad Faris
presented a cash donation of approximately $65 to each of the 500 eligible
recipients. Identified as severely disadvantaged, these include wheelchairbound and chronically-ill patients.
•
Hosted ‘Breaking of Fast’ for 220 youths from poor families of Baitul Hasanah
Klang, Kuala Selangor and Hulu Selangor. Puan Jamelah Jamaluddin, the Chief
Executive Officer, was present to hand over gifts and packets of money for Hari
Raya. Seventy employees from KFH Malaysia were also present to attend to the
young guests. Selected by Lembaga Zakat Selangor, the children reside at a
hostel under the administration of the body, where they receive proper care and
support.
Total breakdown of KFH Malaysia’s community involvement in 2010
Charitable Activities
Funds US$
Underprivileged community
386,720
Education
733,454
Islamic-related activities
862,800
Environment
12,635
Medical support
729,324
Employees Community Programme
44,571
Total
2,769,504
Local Outreach
We have continued our work in support of the health and prosperity
of our social fabric, actively participating in local community life,
offering support to the most important issues in health, education
and safety.
15 Emergency centers costing approximately KD 1.5 million (more than $5 million
USD) began development in 2010, with some opening that year.
Al Zour is a construction of chalets specifically made for people with special needs
that started in 2010 costing KFH KD 1 million (more than $3.5 million USD).
Promoting healthy living in Bahrain with KFH Bahrain’s sponsorship of the
celebration of the 20th anniversary of the Bahrain Diabetes Society, which
was held under the patronage of HRH Prince Khalifa bin Salman Al Khalifa,
the Prime Minister of Bahrain. As part of the celebrations, an international
conference and exhibition aimed to increase the level of awareness and
highlight the latest developments in combating diabetes. KFH-Bahrain’s
participation in this occasion stems from its strong belief in promoting the
Bahraini society, especially medical institutions and initiatives that care for
the well being of Bahraini people. The Bank is particularly interested in
organizations like the Bahrain Diabetes Society, which are striving to provide
a high level of awareness and health care for those who are suffering from
diabetes. The high incidence of diabetes found in the Kingdom can have
significant repercussions, both on the social and economic level.
KFH Bahrain also supported Think Pink Bahrain’s initiative to install a state-ofthe-art MRI scanning facility to assist the Salmaniya Medical Complex in their
fight against breast cancer. KFH-Bahrain’s support will contribute towards
the civil works in both the Radiology MRI room and Oncology Simulator
room. Currently, advanced MRI scanning treatment is limited in Bahrain and
upon purchasing this equipment; Salmaniya Medical Complex will be able to
provide advanced breast cancer screening and diagnosis free of charge for all
women in the Kingdom.
Local Outreach
KFH employee contributes to charitable activities, Kuwait City
Local programmes and campaigns are long-running in KFH. Numerous
local programmes are set up annually which benefit the local community. A
round-up of 2010’s events include:
•
Sponsorship of the Kuwait Parental Care Society’s Disabled Care Week
•
Support of the College of Administrative Sciences on Renewal of Accreditation
•
Support of “House of Abdullah Care of Children” charity event with the American
Bilingual School, Kuwait
•
Youth India Kuwait Sports Day
•
Sponsorship of International Islamic Centre and activities of Islamic Finance Club
•
Printing of books and brochures with the Kuwait Society for Traffic Safety
•
Material support for patients at the Sabah Al Nasser Health Centre
•
Sponsorship of Deaf Bowling tournament hosted in the United Arab Emirates
•
Support for students of Kuwait University to attend the World Environment
Conference 2010 in Dubai
•
Sponsorship of Kuwait-Syrian Journalists
•
Program for restructuring the workforce and executive in a Career Opportunities
forum
•
Support of small-business owners in Kuwait
•
Sponsorship of Gulf Run, Kuwait
•
Young Arab Leaders Forum “Building the Next Generation of Leaders”, Bahrain
•
Fourth GCC Islamic Conference of Charity
•
Bahrain International Book Fair Sponsorship
•
Hosting “Leaders for Excellence Conference” at the University of Bahrain
•
Sponsoring the traditional pearl diving trip for second consecutive year
Sector Focus
Al Salam International Hospital (SIH)
Al Salam’s Community Service Strategy is to promote health and
environment awareness through community interaction to raise
society standards. The goal is to involve the community through
interactive methods.
Strategic Objectives
1.
Planting the basis of a healthy life and awareness in the young generation
2. Focusing a great amount of attention on the core of the family, the woman
3. Educating the mother on the essentials of raising a child as a newborn and life’s
early stages
4. Educating the family on how to shift lifestyle from unhealthy to healthy habits
5. Educating medical workforce along with community members on the ethics that
should be expected
6. Encouraging and promoting the compliance to safety, security, and health
guidelines
7. Reallocating the community’s energy towards being proactive instead of reactive
8. Energy conservation d starting with SIH as an example to lead the way
2010 highlights
School trips and invites with five of Kuwait’s biggest schools
Employee welfare: monthly strategic management & planning lecture; nurses day
celebration
Instructions to turn off all unnecessary energy consuming equipment or apparatus in
hospital
1000+ students have been checked free of charge
Ramadhan and your health newsletter
Awareness of Diabetes and Hypertension “The Silent Killer”
Al-Sheikh Jazzem El-Mehalhal lecture on “Ethics of Medical Practice.”
Campaign on “how to prevent or decrease the incidence of complications?”
“Don’t smoke your life away” campaign
Elderly care program and exibition
Monthly antenatal and postnatal educational courses, free of charge for mother
“Healthy Day” at Global Investment Company
Diverse views from
KFH
An Interview with
Dr
Mariam Bibi
Position: Consultant and Chief Obstetrics & Gynecologist
Department: Human Recourse & Services, Al Salam International Hospital
Has working for Al Salam met your expectations?
Of course. I started my medical career 40 years ago when medical facilities
in Kuwait were still at their infancy. It was limited, and I actively participated
in the development of the Kuwaiti Health Sector which has resulted in its
current high standards. Al Salam is definitely one of the leading hospitals in
the country, giving the highest priority of medical services, with international
accreditation.
Do you think that women are empowered in the workforce at Al
Salam?
As the Chief Member of Maternity and Child Care, Al Salam has valued my
views and judgment throughout my career. At present, I am building on the
current initiatives such as the baby Friendly Office and have introduced the
First Trimester Scanning which identifies prenatal abnormalities.
How are patients treated differently at Al Salam?
We use consultants in our hospital for all check-ups and procedures
to ensure the best treatment for our customer. This method has made
a great difference in obtaining constructive feedback and putting our
patients at ease.
What sustainability initiatives would you like to see in Al Salam in
the future?
Being an important player in the health sector, I think it would be fantastic
to keep the quality of service at the hospital and I believe that the hospital
should expand into new branches to respond to all clients needs.
Global Stewardship
Looking towards
the future of energy
The future of energy supply is in our generation’s hands. Throughout
our operations, we strive to be part of the solution and not the
problem, advocating that the low cost production of alternative
energy in relation to fossil fuel makes it a highly promising
investment sector. With the Middle East and North Africa being one
of the world’s richest regions in solar and wind energies, the outlook
indeed looks promising.
Teaming up with Bloomberg New Energy Finance, a leader in providing
independent analysis, data and news in clean energy, KFH Kuwait hosted a
workshop in June 2010 on renewable energy, which discussed topics such as global
investment, policy and technology trends and the implications of renewable in the
Middle East.
Al Salam International Hospital’s Green Strategy started in 2010, seeing
improvements in its facilities without disruption patient services. Employed
an Astec Re-Ply Roofing system, state-of-the-art technology where hospital
staff and customers were unaware of the drastic changes happening on the
rooftop. Sustainability was a key driving force in implementing this system, as it
is renewable and thus reduced maintenance costs over time and increased its
overall life cycle. Hospital was able to dramatically reduce surface temperatures
of the roof, averaging 14 C difference, which translated into a cooler indoor
working environment and thus reduced energy usage of air conditioners. To
top it off, the indoor air quality was improved, making the hospital environment
more comfortable for our patients, their visitors and the staff.
Al Salam hospital have also made significant strides in efficient water
management, where the plumbing design was revised in 2010 with pressure
regulating values being installed in all areas of the hospital wherever applicable.
Our KFH Bahrain office is housed in the highly resource efficient Bahrain World
Trade Center. This LEED-certified building features three wind turbines which
can result in up to 15% of energy savings of electricity consumption per year.
In addition the building also incorporates special solar glass which contributes
to reduced air temperature in the building, a district cooling system, energysaving fluorescent lighting and a sustainable water drainage system.
Managing our emissions
Calculating emissions is the first step towards their mitigation and
reduction. In a climate threatened by climate change and depleting
ozone layer, now, more than ever, must we must fully exercise our
role as stewards of the Earth.
Our carbon footprint
The urgency to address global warming, backed by accumulating scientific evidence,
has garnered international attention. The United Nations Framework Convention for
Climate Change has stimulated significant global efforts in mitigating greenhouse gas
emissions and adapting to climate change. The ultimate objective is to prevent human
interference of the climate system that could be deemed “dangerous” by stabilizing
greenhouse gas concentrations and adapt naturally to climate change. There is thus
a new paradigm required from countries and indeed, companies, to meet future
demands of energy.
By calculating KFH’s carbon footprint based on our electricity consumption, we have
addressed our biggest source of greenhouse gas emissions. Now that the size of our
respective carbon footprints are known, we can begin the path towards measuring
our success in energy conservation in the global context.
KFH Kuwait
KFH Bahrain
KFH Malaysia
KFH Turkey
Al Salam Hospital
Electricity consumption (Kwh)
3,267,482
806, 226
2,832,020
11,521,811
3,000,000
Total CO2 emissions (kg)*
2,638,448
717,623
1,577,463
4,987,123
2,422,460
Total CO2 emitted per FTE (kg CO2)
1,197
2,687
2,682
1, 757
2,752
Ozone friendly chillers were installed in our offices in Kuwait to ensure our
emissions contain no ozone depleting substances found in refrigerants. This goes in
line with The Montreal Protocol on Substances That Deplete the Ozone Layer and the
national phase-out of CFCs and HCFCs.
Diyyar Al Muharraq Goes Green at KFH Bahrain. In keeping with their vision, strategies are implemented to minimize
the environmental impact of construction, while establishing the foundation for a sustainable future:
•
Compliance with the internationally recognized Green Building Rating System for New Construction (LEEDNC) in the issuance of building permits.
•
Solar orientation of buildings is being carefully considered along with the potential use of solar and wind energy.
The use of technologies such as solar thermal water heathers, solar powered streetlights and a smart grid for
monitoring and optimizing energy consumption is also being considered.
•
Gold sponsor for this third edition of the Energy & Water Conservation Expo 2010. The Expo is aimed at
identifying energy and water conservation techniques that could be used in the commercial and industrial
sector.
•
Construction by third party developers is subject to adherence to the development guidelines that focus on
waste reduction, where there are plans to introduce a centralized waste collection/separation/removal and
recycling concept.
•
First reclamation project in Bahrain with a continuous monitoring program, which is regularly submitted to the
government environmental bodies for review.
•
Promoting biodiversity in the landscapes with trees and networks of paths community connectivity.
•
Use of Xeriscape planting techniques to promote water efficiency, where selective irrigation techniques are
used on plants which are grouped together according to their water demand.
•
Low maintenance targets with energy efficient, low consumption electrical items such as pumps for drainage,
potable water, irrigation and sewage to reduce overall electricity impact.
Using our resources wisely
Our role as stewards of the earth which KFH does not want to take
lightly, especially considering our regional environmental sensitivity.
We must sustain our earth’s natural resources for many generations
to come.
Annual water consumption
KFH
KFH
Bahrain
Kuwait
KFH
Malaysia
KFH Turkey
Al Salam
Hospital
Water (liters)
47,278,390 9,000,000 4,183,000
49,540,000
9,539,200
Water consumption per
FTE (liters)
21, 451
17, 462
10,840
33, 708
7,113
The majority of our operations and investments are situated in the Middle East, a
water-scarce region. In addressing this critical factor, KFH puts reducing water
consumption a main concern in ensuring our sustainability.
Breakdown of annual water consumption in KFH Kuwait’s branches 2010
7,000,000
6,000,000
Million Liters
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
Kaifan
Al Ahmadi
Abdullah Al Salim
Abdullah Al Mubarak
Salwa
Mubarak Al Abdullah
Haitan
Al Adliyah
Al Andalous
Al Gadsiya
Sabah Al Naser
Al Salhiyat
Mubarak Al Khabeer
Bayan
Al Gasir
Al Khalidiya
Khaitan
Al Fandas
Sabhan
Sabah Al Salim
Al Arthiya
Al Feha
Al Shab
Al Salmiya
Al Fahaheel
Jahra
Fahad Al Ahmad
Main Office
0
State of Kuwait
Ministry of
Electricity &
Water awarded
KFH for outstanding
achievements in
its energy savings
program for 2009
and 2010
Paper consumption in our Kuwait offices has seen an increase, but we will make
up for this by ensuring more is recycled. The total paper consumption per Full-Time
Employee (FTE) for 2010 was 24 kg.
Paper
Paper
consumed
Re-distributed
(tonnes)
(tonnes)
2009
49.9
15,350
30.7%
2010
52.7
20, 750
39.4%
Paper
Re-distributed
Recycled
2010
Paper
consumed
Paper consumption in KFH worldwide
KFH Kuwait
KFH Bahrain
KFH Malaysia
KFH Turkey
Al Salam Hospital
Paper consumption (kg)
53, 000
16,000
22,000
168,000
26,125
Paper consumption per FTE
24
60
37
59
30
(kg)
Annual tree planting in Kuala Lumpur, has been kicked started by KFH Malaysia
to celebrate 53 years of Malaysian Independence. Trees can act as carbon
sinks, absorbing and locking away carbon dioxide, the main greenhouse gas
responsible for climate change. Trees also help cleanse the air by intercepting
airborne particles and can reduce urban-city heat by absorbing pollutants such
as carbon monoxide, sulfur dioxide and nitrogen dioxide.
Palm trees by the beach, Malaysia
Our
Strategy
Our vision in corporate responsibility is to embark on positive economic, social and environmental
change by using our Shariah principles to guide the way. Based on our findings in consolidating
and writing this Corporate Sustainability Report, we understand we need to improve on our
sustainability performance. Our long-term plan is presented here.
Our Business
Principles
Our
Customers
Our
People
Ambition
To be the leading
Islamic Bank
in Coroprate
Sustainability
Be an employer
Create a
of choice
balanced
dialogue between
KFH and its
customer base
2011 Goals
Increase number
of subsidaries
reported on in
next CSR report
Improvement
of customer
satisfaction score
Create a KFH
Group policy
on Corporate
Responsibility
Train our
employees
on corporate
sustainability skills
Develop Shariah
financial services
education
through use of
social-media,
video and other
modern mediums
Engage in Social
Media Networks
to increase
involvement and
dialogue on CSR
issues
Increase number
of women in
workforce, with
focus on senior
positions
Establish a CSR
Committee
for the group
to promote
sustainability
Our
Deeds
Our
Environment
Uphold reputation Be the leading
bank in the region
in our positive
impact to society in conservation
Develop diverse
products and
services that can
create indirect
economic
impacts
Increase
awareness
in renewable
energy
investments
Promote
reduction
in electricity
consumption
Decrease
office paper
consumption per
FTE
Finally, we wish to create a univeral CSR system to be used across KFH to faciliate in tracking
and gathering our corporate sustainabilty indicators across our subsidiaries. This will improve the
efficiency, completeness and accuracy in future reporting.
Stakeholder
Engagement Plan
Kuwaiti Government
How we engage
Sustainability priorities
Actions
•Regular correspondence with the
government ministries
•Contributing to the national
economy
1) Establish sustainability-focused
linkage with ministries
•Investment in the national
economy
•Positive contributions to Vision
2035
2) Discuss sustainibilty issues
•Meeting national laws and
regulations
Customers
•Range of feedback mechanisms
initiated either by KFH or the
customer
•Satisfaction in products and
services
•Use of latest technological trends
to facilitate dialogue
•Efficient branches and technology
•Customer satisfaction surveys
•Branch expansion
•Quality in customer care
•Shariah product innovation
1) Conduct and report results on
customer satisfaction surveys,
including customers of key
initiatives such as affordable
housing
2) Include feedback from the
survey when developing annual
sustainability initiatives related to
customer services
•Competitive rates and charges
3) Establish a dedicated customer
care unit
Employees
•Regular career appraisals leading
to training schedules
•Job satisfaction
•Career longevity, lifelong learning
1) Conduct employee engagement
and satisfaction survey
•Regular team meetings
•Fair compensations and
promotions
2) Introduce an employee-initiated
feedback mechanism scheme
•Pleasant working environment
Investors/ Shareholders
•Board of Director’s meetings
•Ongoing correspondence
•Confidence in KFH in handling
business, customers, suppliers and
employees
•Net annual returns
1) Continued investment in diverse
industries and economies
2) Annual Corporate Sustainability
Reporting
•Shariah Compliance
Suppliers
•Supply management in regular
ordering and feedback
•Continued support and fair
treatment
•Efficiency in product/service usage
Rating Agencies/
Regulatory Authorities
•Compliance to regulations and
submissions
NGOs
•Awareness of expectations and
regular donations, sponsorships,
inaugurations and support in
society
•Sound environmentally-friendly
practices and investment
•Regular board meetings and
correspondence
•Compliance
Shariah Board
•Transparency
•Compliance
•Support State Audit Bureau
1) Look to create dialogue
mechanisms to further
understand expectations
and suggestions to improve
sustainability
1) Continued annual and corporate
sustainability reporting
2) Regular contact and dialogue
•Continued investment in
community
•Continued improvement in
products and services
1) Look to establish dialogue
mechanism to obtain their
feedback on KFH sustainability
initiatives
1) Stimulate Shariah product and
service creativity that meet global
sustainability objectives
•Representation of Shariah on
global platform
GRI Index
Key Performance Indicator
Pages
EC1
Direct economic value generated and distributed, including revenues,
operating costs, employee compensation, donations and other
community investments, retained earnings and payments to capital
providers and governments
12
EC7
Procedures for local hiring and proportion of senior management hired
from local community at locations of significant operation
26, 27,
31
EC8
Development and impact of infrastructure investments and services
provided primarily for public benefit through commercial, in-kind, or probono engagement
34, 35,
36, 37,
38
EC9
Understanding and describing significant indirect economic impacts,
including the extent of impacts
2, 6, 17,
18
LA1
Total workforce by employment type, employment contract, and region,
broken down by gender
26, 27,
28
LA3
Benefits provided to full-time employees that are not provided to
temporary or part-time employees, by major operations
32
LA7
Rates of injury, occupational diseases, lost days, and absenteeism, and
total number of work-related fatalities by region
32
LA10
Average hours of training per year per employee by gender, and by
employee category
LA12
Percentage of employees receiving regular performance and career
development reviews
32
LA14
Ratio of basic salary of men to women by employee category
27
EN1
Materials used by weight or volume
45
EN2
Percentage of materials used that are recycled input materials
45
EN4
Indirect energy consumption by primary energy source
43
EN6
Initiatives to provide energy-efficient or renewable energy based
products and services, and reductions in energy requirements as a result
of these initiatives
EN8
Total water withdrawal by source
44
EN16
Total direct and indirect greenhouse gas emissions by weight
43
EN19
Emissions of ozone-depleting substances by weight
43
PR5
Practices related to customer satisifaction, including results of surveys
measuring customer satisfaction
22, 23,
24, 47
FS1
Policies with specific environmental and social components applied to
business lines
15, 16,
43
FS4
Processes for improving staff competency to implement the
environmental and social policies and procedures as applied to business
lines
33
FS11
Percentage of assets subject to positive and negative environmental and
social screening
16
FS14
Initiatives to improve access to financial services for disadvantaged
people
25
Human Rights
HR1
Percentage and total number of significant investment agreements and
contacts incorporating human rights concerns, or that have undergone
human rights screening
33
Society
SO1
Nature, scope, and effectiveness of any programs and practices
that assess and manage the impacts of operations on communities,
including entering, operating, and exiting
17
Economic
Labor
Environment
Product
Responsibility
Product & Service
Impact
Full Reporting
Partial Reporting
31, 32
42, 44
Reporting
Level
Our
Approach
This corporate sustainability report gives an overview of KFH’s
performance from its main office across its subsidiaries. This is the first
Corporate Sustainability Report KFH has published.
Content and Materiality
The report content was developed after careful consideration and
identification of the most important topics and related indicators by
undergoing an iterative process using the Principles of materiality,
stakeholder inclusiveness, sustainability context and guidance as defined
in GRI 3 Guidelines. Performing a materiality analysis based on stakeholder
expectations and sustainability priorities, and subsequently reporting on
the most material Key Performance Indicators.
Data collection
We used tailor-made questionnaires to identify and consequently gather
the data required to meet the standards of GRI. These were distributed to
the relevant departments in each of the KFH offices as part of this report.
The departments were: Human Resources, Financial Control, Shariah
Compliance, Marketing & Communications, Strategy & Investment and
Facility. We are confident that the overall reliability of the data is robust
but recognize that some is subject to some degree of uncertainty due
to judgments and estimation methods used. Monetary figures were
converted to United States Dollars ($) using conversion rates as of
31/12/2010.
Completeness and Boundaries
The report covers all banking operations in KFH Kuwait in addition to local
operations in KFH Bahrain, KFH Malaysia and KFH Turkey. The report also
covers KFH subsidiaries in the State of Kuwait, Al Salaam International
Hospital and International Turnkey Systems. Due to the differences of data
available for each of the subsidiaries, it was difficult to consolidate all the
results and figures given, as such subsidiaries were reported separately.
Global Reporting Initiative
The Global Reporting Initiative (GRI) has developed sustainability reporting
guidelines that aim to increase transparency and accountability of
economic, environmental and social performance. We support the GRI
and we believe that a B grade applies to our CSR 2010. We have
additionally reported on performance indicators specific to our line of work,
financial services, using the GRI’s Financial Services Sector Supplement
(FSSS).
Assurance
All financial numbers in the sustainability report are based on audited
financial statements found in our 2010 annual reports. According to the
GRI guidelines and our disclosures, we believe that level B applies to
our Corporate Sustainability Report. We understand the importance of
assurance of corporate sustainability reports and aim to have our reports
audited in future.
Special
Thanks
KFH extends special thanks to those who have directly and indirectly contributed to the successful preparation of
the KFH Corporate Sustainability Report 2010 including,
Project Management
Fahad Khaled Al-Mukhaizeem, Head of Strategic Planning / Marketing & PR Departments - KFH Kuwait
Momtaz M. Saif, Sustainability Project Manager / Strategic Performance Manager - KFH Kuwait
KFH Kuwait
Adel Abdullah Al-Were, Deputy Manager General Services
Adel Saboba, Economic Researcher
Ahmed Al-Nori, Manager Compensation & Manpower Planning
Ahmed Al-Rashid, Creative Supervisor
Dawood Sami Al-Jarrah, Sharia’a Auditor
Houssam Q. AlKhatib, Service Quality Manager
Imad R. Mirza, Development & Training Manager
Khaled Al-Otaibi, Business Development
Khaled Al-Sayer, Digital Marketing Supervisor
Mohammed M. Al-Musalam, Senior Strategy Officer
Salahuddin Ahmed, Investment Manager
Zakaria Al-Ansari, Dealer
Ziad Salameh, Corporate Marketing Manager
KFH Turkey
Gökhan ENGÜL - Corporate Communication
KFH Bahrain
Adnan Shakoor Malik, Head of Strategic Planning & Governance
Ahmed Khalifa Khalfan, Assistant Manager Corporate Communications
KFH Malaysia
Akmal Baqi Mohamed Ariff, Head, Corporate Communications Division
Hajjah Rumaizah Dato’ Abu Bakar, Corporate Communications Division
Fazidah Zakaria, Corporate Communications
KFH Research Ltd.
Baljeet Kaur Grewal, Managing Director
Tursina Yaacob, Director
Aliaa El Sayed
Sawsen Sobhi, Marketing & PR Department Secretary
Dr Mariam Bibi, Consultant & Chief of Obs & Gyne
Dr. Costas G. Constantinidis, AGM
Muhammed Asif, Accounting Manager
Ernst & Young sustainability assurance advisors to Kuwait Finance House Group
Glossary
Carbon dioxide
A greenhouse gas associated with global climate change, expressed as CO2.
Carbon Footprint
The total amount of greenhouse gases produced due to anthropogenic activities. It is the sum of all emissions of carbon dioxide, which were induced by your activities in a given time frame.
CSRCorporate Sustainability Reporting/Report
Includes payments to suppliers, employee wages and benefits, payments to providers of capital, payments to governments and community investment.
Net sales plus revenues from financial investments and sales of assets.
Calculated as Economic value generated less Economic value distributed.
Equator Principles Voluntary set of standards for determining, assessing and managing social and environmental risk in project financing.
Full-Time Employee (FTE)
Total number of full time employees working in KFH as of 31/12/2010.
Global Reporting Iniative
GRI is a network of many international partners that has developed a framework for sustainability reporting, in particular sustainability reporting guidelines, sector supplements and protocols.
Greenhouse Gas
Greenhouse gases are gases in the atmosphere that absorb and emit radiation within the thermal infrared range. This process is the fundamental cause of the greenhouse effect, where the planet is warmed by the atmosphere.
Kg CO2
Total kilograms of carbon dioxide.
Montreal Protocol
An international treaty designed to protect the ozone layer by phasing out the production of a number of substances believed to be responsible for ozone depletion.
Ozone-friendly
Not containing chemicals that are destructive to the ozone layer.
Ozone Layer
A layer in the earth’s stratosphere at an altitude of about 10 km (6.2 miles) containing a high concentration of ozone, which absorbs most of the ultraviolet radiation reaching the earth from the sun.
Kuwait Finance House
P. O. Box 24989 Safat
13110 Kuwait
Tel: 22445050
Fax:22455135
Cable: BAITMAL KT
[email protected]
www.kfh.com
Printed on recycled paper

Kuwait Finance House (KFH) Group of Companies

Transcription

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