Kbc Group N.v. · EURONEXT:KBC
Kbc — ESG Presentation (December 2021)
38 slides from Kbc's sustainability presentation, Dec 13, 2021
Slide 1: An update on ESG
An update on ESG KBC Group Corporate Sustainability Filip Ferrante, General Manager Group Corporate Sustainability December 2021
Slide 2: Interactive digital publication available on www.kbc.com
Interactive digital publication available on www.kbc.com
Slide 3: Defining report content
Defining report content: Prepared in accordance with the GRI Standards: Core option - Two yearly materiality assessment to identify material topics, complemented with maturity assessment GRI/SASB - The material topics define the content of the report, and Content Index are discussed throughout the
Slide 4: Stakeholder engagement and materiality assessment
Stakeholder engagement and materiality assessment Stakeholder identification and engagement Materiality assessment: - Setting the scope: stakeholder mapping - Selecting relevant topics considering relevant sustainability frameworks and benchmarks - Validating topics and determining importance th
Slide 5: KBC sustainability strategy
KBC sustainability strategy To avoid or limit the negative impact of our products and services as much as possible To provide financial solutions and business opportunities that have a positive impact in a number of pre-determined focus domains We focus especially on responsible behaviour as t
Slide 6: Our sustainability ambitions
Our sustainability ambitions Strong ESG ratings, substantially above industry average Agencies Current ESG rating (score previous year) Position versus industry average D A - • Financial services average B A- (A-) Severe Risk High Risk Medium Risk Low Risk Negligible Risk • 2nd percentile of 396 div
Slide 7: Our sustainability ambitions
Our sustainability ambitions Strengthened climate-related ambitions Direct footprint KBC will achieve climate-neutrality as from 2021 by offsetting the balance At the same time, KBC will continue to reduce its actual direct footprint and we have set ambitious targets: 80% reduction of total own
Slide 8: Our sustainability ambitions
Our sustainability ambitions Financing of renewable energy Renewable energy being key in the EU Action Plan Ambition to increase the share of renewables in the total energy credit portfolio to minimum 65% by 2030 Financing of coal-related activities All remaining direct coal exposure has been
Slide 9: Our sustainability ambitions
Our sustainability ambitions Socially Responsible Investments (SRI) SRI as our first offer and preferred investment solution, clearly translated in ambitious targets SRI funds to reach 30 billion euros by year-end 2025 SRI funds to account for more than 50% of new production by the end of 2021
Slide 10: Our approach for the energy sector
Our approach for the energy sector • Ban on specific financing of new oil & gas fields NOV/21 • Term of new general financing to vertically integrated oil & gas companies is limited to 2030 at the latest, unless the company publicly commits to no longer start operating new fields, and a contractual
Slide 11: Updated KBC sustainability governance
Updated KBC sustainability governance Top level responsibility for sustainability and climate strategy The Executive committee has the highest level of direct responsibility for sustainability and climate change and reports on it to the Board of Directors Direct responsibility of the Group CEO
Slide 12: KBC Sustainability Dashboard
KBC Sustainability Dashboard Presented twice a year to Board of Directors To follow-up and evaluate the implementation of our sustainability and climate strategy The assessment impacts the variable remuneration of the Executive Committee members
Slide 13: Our People
Slide 14: Our people: PEARL+
Our people: PEARL+ Our people represent our ‘human capital’ and are one of the main drivers to creating sustainable value as a bank-insurer. Our values challenge us day in, day out to behave critically and responsibly Firmly embedded PEARL+ business culture
Slide 15: Our people: diversity and inclusion
Our people: diversity and inclusion Respect is one of the key values of our corporate culture: we promote a culture of diversity and inclusion, in which we treat each other with respect The KBC Group Code of Conduct for Employees – reviewed in 2020 - sets out the key behaviours we expect from al
Slide 16: Our people: remuneration policy
Our people: remuneration policy Sustainability integrated into our remuneration policy The variable remuneration of Executive Committee members is linked to - amongst others - progress made in the area of sustainability, which is evaluated every six months using the KBC Sustainability Dashboard.
Slide 17: Our Responsibility
Slide 18: Our responsibility: responsible business
Our responsibility: responsible business Responsible behaviour is crucial to an effective and credible sustainability strategy Trust is fundamental to ‘our social license to operate’ Sound risk awareness Groupwide compulsory awareness training Business ethics: Compliance with relevant rule
Slide 19: Our responsibility: Sustainability policies
Our responsibility: Sustainability policies We apply strict sustainability policies to our business activities with respect to human rights, environment, climate and biodiversity, business ethics and sensitive/ controversial societal issues. The KBC sustainability policies are regularly reviewed
Slide 20: Sustainable Finance
Slide 21: Our commitment to climate action
Our commitment to climate action As a TCFD endorses, we report on our ongoing climate actions in accordance with the four pillars of the TCFD Framework Governance Integral part of our overall sustainability governance Dedicated Sustainable Finance Programme set up in 2019 to focus on integrati
Slide 22: Our commitment to climate action
Our commitment to climate action Strategy Dedicated Sustainable Finance Programme focusing on: Increasing the opportunities of and exposure to low-carbon clients and activities Green products and business solutions Reducing the risks of and exposure to high-carbon clients and activities Ap
Slide 23: Our commitment to climate action
Our commitment to climate action Risk Management ESG risks, including climate-related risks, are identified and defined in our risk taxonomy Solid risk management: Embedded in existing risk management processes Top level representation of Group risk and Group Credit Risk in the Sustainable F
Slide 24: Our commitment to climate action
Our commitment to climate action Metrics and targets: Substantially raised climate-related ambitions related to both our direct and indirect impact 65% renewable energy loans by 2030 Fully exit direct coal-related financing by 2021 30 billion euros’ worth of SRI funds by 2025 and more than 5
Slide 25: Our commitment to climate action
Our commitment to climate action Updated strategies on the most carbon-intensive industrials sectors and product-lines (5 out of 11 assessed in 2020) First results and new and updated targets where relevant are presented in so- called white papers Updated sustainable investment principles for
Slide 26: Our commitment to climate action
Our commitment to climate action Energy Our ambitions To gradually increase the share of renewables in the total energy loan portfolio Indicator KBC Target KBC Realisation Status 1H 2021 2020 Share of renewables in the total energy loan portfolio Minimum 65% by 2030 60% 61% Above track (excludin
Slide 27: Our commitment to climate action
Our commitment to climate action Engagement strategy as explicit part of the KBC Sustainable Finance Programme Client engagement Being a partner in the transformation to a more sustainable future Training of relationship managers on sustainability themes and climate-related topics, including
Slide 28: Our commitment to climate action
Our commitment to climate action Methodological tracks or pilot projects to implement new climate measuring instruments PACTA (Paris Agreement Capital Transition Assessment): second publication of our PACTA results Confirmation that overall share of loans in PACTA scope is relatively small, at 4.0
Slide 29: Our commitment to climate action
Our commitment to climate action PCAF (Partnership for Carbon Accounting Financials) Standard gives guidance to calculate and attribute GHG emissions related to portfolio's of financial institutions. KBC is member of PCAF’s European team since 17 September 2019 In 2019, we started using PCAF for
Slide 30: Our commitment to climate action
Our commitment to climate action UNEP FI: first results of the analytical tools and indicators used to assess credit risks in our corporate loan portfolio that are associated with the transition to a low-carbon economy and physical risks associated with climate change: Transition risk: In 2020 met
Slide 31: Our commitment to climate action
Our commitment to climate action Trucost: first assessment of the climate impact of KBC Asset Management’s funds, using Trucost’s methodology and dataset to map the current and forward- looking impact of its portfolio on global warming Scope: the pilot project only focused on the all-open invest
Slide 32: Socially Responsible Investment
Socially Responsible Investment SRI as a key focus area of our sustainability strategy: First offer and preferred investment solution Belgian Towards Sustainability quality label for all our SRI funds SRI funds to account for more than 50% of new production by the end of 2021 (including art. 8
Slide 33: Impact investing
Impact investing Through its unique partnership with BRS, KBC is actively involved in microfinance and microinsurance Financial services Cooperation, training and coaching Flexibility and solidarity BRS Microfinance Coop invests capital raised through the issue of cooperative shares in mic
Slide 34: Impact investing
Impact investing rnc in Th mcr tebe aon = Consultancy 267 day cf conching we ining (BS vom 257 days of training vi 57038 exes (cody Mac) pre
Slide 35: Our Sustainable Business Solutions
iA OUR SUSTAINABLE © Financial literacy © Entrepreneurship © Environmental respor © Longevity and healt
Slide 36: Sustainable business solutions
Sustainable business solutions Aim to provide financial solutions and business opportunities that have a positive impact on society Four focus areas, close to our activity as a bank-insurer Environmental responsibility Financial literacy Entrepreneurship Health and longevity
Slide 37: Our commitments
Our commitments We report on our progress in the KBC Group – UN Global Compact Communication on Progress 2020 available on www.kbc.com Self-assessment regarding the Detailed Equator Principles reporting is implementation of the UNEP FI included in the sustainability report Principles for Responsible
Slide 38: Questions?
Questions?