Zain Group's MSCI rating for ESG upgraded to 'A'

02/10/2025 06:00 AST

Zain Group, a leading provider of innovative ICT and digital lifestyle communications operating in eight markets across the Middle East and Africa, has attained a significant improvement in its Morgan Stanley Capital International (MSCI) rating in ESG (Environmental, Social, and Governance), which was upgraded from 'BBB' to 'A' as of September 2025.

This milestone underscores Zain's unwavering commitment to strengthening corporate governance frameworks, upholding the highest standards of transparency, proactively complying with regulatory requirements, and adopting global best practices in disclosure and risk management. This commitment helps Zain mitigate risks and facilitates an effective Board oversight over the company's executive management by promoting strong internal controls to improve integrity of financials and establishing a culture of compliance.

The Group recently intensified its efforts to build a flexible and sustainable operating model, reinforcing its leadership in guiding the region toward a future where technological advancement and corporate responsibility are closely aligned. Zain's focus on accountability, transparency, and ethical practices further cements its standing as a leading force in the ICT sector, known for generating sustainable value.

Zain's latest ESG rating highlights its ongoing advancement in data privacy and security initiatives. The Group has launched several oversight mechanisms and initiatives to safeguard data and manage risks, demonstrated by recent ISO certifications across multiple business units. The Group continues to enhance data security to mitigate risks while handling sensitive data-particularly in markets with tightening privacy laws, such as Kuwait.

Furthermore, the Group has enhanced its corporate governance structure by clarifying responsibilities and refining board oversight mechanisms. The MSCI upgrade also reflects Zain's commitment to ethical conduct, responsible corporate behavior, and the adoption of best-in-class labor management practices, such as executive training programs and employee engagement initiatives.

Notably, Zain achieved a perfect 10/10 in the environmental category reflecting its progress on its region-wide 2050 Net Zero Emissions targets.

Zain Vice Chairman & Group CEO, Bader Al-Kharafi stated: "Zain's transformative '4WARD-Progress with Purpose' strategy is driving the company's sustainability, corporate governance and ethical leadership agenda to new heights. Integrating ESG principles at the core of our business strategy is essential for achieving true industry leadership."

He added; "This upgrade on the MSCI ESG Index reaffirms the success of the company's focus on innovation and responsibility, powered by a resilient, sustainable and data powered ecosystem built on transparency and adherence to the highest global standards. By reinforcing our oversight and control frameworks, we have fostered a supportive work environment that drives sustainable growth and long-term value for all stakeholders"

"ESG is not just about risk management-it offers strategic vision that empowers us to meet future challenges with confidence and resilience. We are building a collaborative culture that champions innovation and expands strategic partnerships for greater synergy and shared success. Responsible governance is essential to address the challenges emerging from rapid technological advancement and artificial intelligence."

Al-Kharafi emphasized Zain's commitment to leading regional transformation through the development of advanced digital infrastructure, the ethical and sustainable application of AI and technology, and the launch of breakthrough initiatives supporting responsible innovation, all while ensuring business continuity and community well-being.

Zain's sustained progress on the MSCI ESG Index reinforces its status as a catalyst for sustainability and responsible governance. The recent upgrade reflects Zain's alignment with evolving ESG regulations across its operational markets and its dedication to world-class transparency in reporting.

The Group's leadership in climate action, governance reforms, effective environmental policies, and major strides in data privacy remain evident, even amid geopolitical challenges. Zain's innovative responses and continuous improvement reinforce its position as a driver of long-term sustainable prosperity for the communities it serves.

As the business landscape evolves, Zain continues to set the benchmark for governance and sustainability. Its latest climb on the global MSCI ESG Index, particularly for data privacy and protection, underscores its commitment to a data-driven corporate culture grounded in precision and informed decision-making.

Recognizing that robust data governance is now a regulatory necessity, Zain established the "ZAIN DATA OFFICE" as a foundational pillar for high-quality information, enabling compliance with data protection and cloud computing laws. This office enhances Zain's resilience against data threats and regulatory constraints, strengthening its adaptability to global information management requirements.

Reinforcing its environmental objectives, Zain remains at the forefront of global efforts to combat climate change, consistently adopting nature-based, sustainable solutions that position it as a regional leader in environmental transformation.

On the labor rights front, Zain's policies embed human rights principles across human resources and codes of conduct, with special emphasis on anti-discrimination and employee treatments.

Zain's sustainability policies reflect a comprehensive vision for a more equitable and prosperous future, founded on strategic partnerships that drive economic growth and community well-being.

The renowned MSCI ESG Ratings methodology evaluates companies on their management of material ESG risks and opportunities including climate change, human capital, and corporate governance, with a focus on policies, performance metrics, and controversies. Ratings are industry-relative and range from 'AAA' to 'CCC,' with scores determined by a company's exposure to ESG risks and the effectiveness of its management strategies.

Kuwait Times