Slide 1: A summary of the 2021 KBC Group Sustainability Report
Internal A summary of the 2021 KBC Group Sustainability Report Publication date MoreMore information: KBC KBC Group information:www.kbc.com Group––Group www.kbc.com Corporate Group Corporate Sustainability Sustainability– – email: csr.feedback@kbc.be Email: csr.feedback@kbc.be Publication date: Apri
Slide 2: Sustainability as an integral part of our corporate strategy
Sustainability as an integral part of our corporate strategy Creating long-term sustainable value in five high-impact areas Good health and well-being Developing banking and insurance products that focus on health, healthcare and improving quality of life Affordable and clean energy Supporting the t
Slide 3: Translated in clear sustainability-related corporate targets
Internal Translated in clear sustainability-related corporate targets Achieved Achieved On track Volume of RI Funds (in billions of EUR) Share of RI funds in % of total annual fund production Renewable energy loans (as % of total energy sector 32 32 55% 58% loan portfolio) 65% 30 50% 61% 63% 57% 40%
Slide 4: Supported by a solid sustainability and climate-related governance
Internal Supported by a solid sustainability and climate-related governance Top level responsibility for sustainability ensuring the integration into every layer of the organisation 1 Limited to environment, social and governance (ESG) topics discussed as part of our specific sustainability governan
Slide 5: KBC Sustainability Dashboard
Internal KBC Sustainability Dashboard Following-up and evaluating the implementation of our sustainability and climate strategy 5
Slide 6: Recognised as an ESG leader by independent rating providers
Internal Recognised as an ESG leader by independent rating providers KBC aims to be the reference Agencies ESG rating of 29st of April 2022 (previous score) Position versus industry average D- A Financial services average B A- (A-) Severe Risk High Risk Medium Risk Low Risk Negligible Risk 3rd perce
Slide 7: Our sustainability roadmap
Internal Our sustainability roadmap Strong ESG performance in 2021 All remaining direct coal exposure 31.7 billion euros in socially Top level responsibility for has been phased out in line with responsible investment (RI) funds sustainability and climate change our commitment – anchored in our sust
Slide 8: Our sustainability-related commitments
Internal Our sustainability-related commitments KBC supports various international agreements and standards in delivering upon our Sustainability commitments UN Environment Programme Principles for Sustainable Tobacco Free Pledge Initiative Insurance An initiative calling on financial A partnership
Slide 9: Our people
Our people Working the Next Level Employee growth and development Listening to our employees Safe and healthy working environment Social dialogue Diversity and inclusion
Slide 10: Our people
Internal Our people Building on a solid PEARL+ corporate culture 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 10
Slide 11: Our people
Internal Our people Offering a safe, secure and healthy working environment and stimulating creativity and innovation Working the Next Level: Being prepared for a changed work organisation. Employee growth and development: Offering development opportunities and continuous progression. Employee
Slide 12: Our responsibility
Our responsibility Responsible business Responsible behaviour Business ethics Human rights Information security and cyber risk Privacy and data protection Sustainability policies Updated and new sustainability policies Application of KBC’s sustainability framework Due diligence, remedial action and
Slide 13: Our responsibility
Internal Our responsibility Responsible behaviour as the foundation to gain and retain the trust of our stakeholders Responsible behaviour is crucial to an effective and credible sustainability strategy - Trust is fundamental to ‘our social license to operate’ - Sound risk awareness - Dilemma trai
Slide 14: Our responsibility
Internal Our responsibility A solid sustainability framework with strict sustainability policies as the backbone of our business activities Strict sustainability policies applied to our business activities with respect to human rights, environment, climate and biodiversity, business ethics and sen
Slide 15: KBC Group Energy Policy
Internal KBC Group Energy Policy An overview of the subsequent restrictions we have already implemented since 2016 15
Slide 16: Sustainable finance
Sustainable finance Our approach to sustainable finance Socially responsible investments on behalf of our clients Sustainability in own investments Our commitment concerning our social impact Our commitment to the environment and climate action
Slide 17: Sustainable finance
Internal Sustainable finance Our important role as a financial institution in contributing to the economic, social and environmental objectives of the UN Sustainable Development Goals We aim to meet the expectations of society’s stakeholders in respect of the main environmental, social and governa
Slide 18: Sustainable finance
Internal Sustainable finance Taking into account ESG considerations in all our core activities Sustainable finance products channel funds to finance customer transactions, supporting the transition of our clients in many sectors and domains: environmentally and socially sustainable solutions. As map
Slide 19: Responsible Investing (RI) on behalf of our clients
Internal Responsible Investing (RI) on behalf of our clients Our focus on RI funds as a key element of our sustainability strategy RI as first offer and preferred investment solution. Thereto strongly focused on awareness and understanding of RI both amongst our staff and clients. Clear targets
Slide 20: Sustainability in our own investments
Internal Sustainability in our own investments Gradually including ESG considerations in KBC Group’s own investments Sustainable investment principles of Group Treasury - Update of KBC Group Investment Policy at the end of 2020: - New investments made by KBC entities for their own account are requ
Slide 21: KBC Social Bond Framework
Internal KBC Social Bond Framework A framework aligned with the best market practices Rationale for the issuance of social bonds - KBC is dedicated to increase its positive social impact by financing and insuring he healthcare & education sectors. Adding social bonds to KBC’s funding mix, can crea
Slide 22: Our commitment concerning our social impact
Internal Our commitment concerning our social impact Increasing our social impact through our core activities Social impact financing: Financing and insuring projects that contribute to and provide access to social goods and services such as education, basic infrastructure, essential services, hea
Slide 23: Our commitment concerning our social impact
Internal Our commitment concerning our social impact Increasing our social impact through our core activities Financial inclusion and impact investing: Through our unique partnership with BRS we facilitate sustainable local development and contribute to financial inclusion: - Microfinance and micr
Slide 24: Our commitment to the environment and climate action
Internal Our commitment to the environment and climate action Actively working on our environmental impact Strong focus on climate change mitigation and adaptation through the KBC Sustainable Finance Programme. Other environmental objectives are also considered and included in our sustainability p
Slide 25: Our environmental footprint
Internal Our environmental footprint Measuring and reporting both our direct and indirect footprint scope Measure, reduce and set clear targets on our direct footprint scope already since 2015. - We already substantially reduced our direct footprint by -71% in 2021. - In line with our commitment,
Slide 26: Our indirect environmental impact
Internal Our indirect environmental impact Disclosing our efforts on the management of climate-related risks and opportunities structured across the four pillars of the TCFD recommendations Governance: - Climate-related governance is an integral part of our overall sustainability governance with t
Slide 27: Our indirect environmental impact
Internal Our indirect environmental impact Disclosing our efforts on the management of climate-related risks and opportunities structured across the four pillars of the TCFD recommendations Strategy: - Updated strategies on the most carbon-intensive industrial sectors and product lines (White Pape
Slide 28: White Paper approach
Internal White Paper approach Updated strategies on the most-carbon intensive industrial sectors and products lines White Paper analysis is focused on eight industry sectors and three specific product lines identified as the most carbon-intensive ones, and includes an analysis of: - The challenges
Slide 29: Our indirect environmental impact
Internal Our indirect environmental impact Disclosing our efforts on the management of climate-related risks and opportunities structured across the four pillars of the TCFD recommendations Risk Management: - ESG risks, including climate-related and environmental risks, are identified and defined
Slide 30: Our indirect environmental impact
Internal Our indirect environmental impact Disclosing our efforts on the management of climate-related risks and opportunities structured across the four pillars of the TCFD recommendations Metrics and targets: - Gathering climate-relevant data on our portfolios as a crucial first step to monitor
Slide 31: Loan portfolio assessment methodologies
Internal Loan portfolio assessment methodologies Methodologies informing KBC on the climate-related impact of the most carbon-intensive components of our loan portfolios PCAF (Platform Carbon Accounting Financials) offers a methodology for calculating Scope 3-financed GHG emissions for financial i
Slide 32: Loan portfolio assessment methodologies
Internal Loan portfolio assessment methodologies Methodologies informing KBC on the climate-related impact of the most carbon-intensive components of our loan portfolios PACTA (Paris Agreement Capital Transition Assessment) is a forward-looking scenario-based methodology developed by 2DII, which m
Slide 33: Loan portfolio assessment methodologies
Internal Loan portfolio assessment methodologies Methodologies informing KBC on the climate-related impact of the most carbon-intensive components of our loan portfolios UNEP FI transition risk assessment: - Results of the analytical tools and indicators used to assess credit risks in our corporat
Slide 34: Investment portfolio assessment methodologies
Internal Investment portfolio assessment methodologies Methodologies and data used to measure the climate-related impact of our investment portfolios Trucost: - Second assessment of the climate impact of KBC Asset Management’s funds and first assessment of the climate-related impact of our own inv
Slide 35: Questions?
Questions? 35