Kbc Group N.v. · EURONEXT:KBC
Kbc — ESG Presentation (September 2024)
37 slides from Kbc's sustainability presentation, Sep 18, 2024
Slide 1: KBC Global Services Group Corporate Sustainability
More information: www.kbc.com 1 KBC Global Services – Group Corporate Sustainability– Email: csr.feedback@kbc.be KBC Global Services – Investor Relations Office – Email: IR4U@kbc.be
Slide 2: About this report
About this report Prepared in accordance with the GRI Universal Standards and the GRI Topic Standards GRI/SASB Content Index Includes relevant disclosure topics and associated metrics under the SASB Commercial Banks industry standard Includes reporting on our environmental impact structured ac
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Slide 4: Sustainability highlights 2023
Sustainability highlights 2023 4
Slide 5: Recognised as an ESG leader by independent rating providers
Recognised as an ESG leader by independent rating providers* KBC aims to be the reference Negligible risk rating (8.8) • 1st percentile of 294 diversified 5 banks assessed • 1st of 294 diversified banks Leader among 204 banks 100th percentile of banks assessed [Full annual review ongoing] assessed *
Slide 6: Making progress on our sustainability targets
Making progress on our sustainability targets 6
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Slide 8: The cornerstones of our sustainability strategy
The cornerstones of our sustainability strategy Good health and well-being Focus on improving healthcare, quality of life and road safety. Affordable and clean energy Contribute to increasing the share of local renewable energy production and its efficient use. Gradually exiting from the financing a
Slide 9: Business solutions with a positive societal impact
Business solutions with a positive societal impact Four focus domains, within our realm of influence and through which we can address current societal needs. Environmental responsibility Financial literacy Entrepreneurship Longevity and health 9
Slide 10: Firm sustainability governance
Firm sustainability governance Figure 2.2: KBC sustainability organisation chart • Oversees the implementation and progress of KBC’s sustainability strategy Board of Directors • This includes all ESG-related themes Supervisory and management board • Closely monitors the management of ESG-related ris
Slide 11: KBC Sustainability Dashboard
KBC Sustainability Dashboard Follow-up of implementation of sustainability strategy Figure 2.3: KBC Sustainability Dashboard Variable remuneration of top and senior management partly Environment Social Governance linked to sustainability performance: Climate target setting Supporting female entrepre
Slide 12: The world in which we operate
The world in which we operate Our sustainability strategy and policies are influenced by developments in our working environment. Voluntary Stakeholder commitments interactions Regulatory Conducted biannually Materiality and to determine 7 most assessment material topics. Most legislative recent ass
Slide 13: We want to create a working environment
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Slide 14: Working environment
Working environment We want to create a working environment where our 41 000 employees feel safe, are free to speak up and able to grow Psychosocial well-being: preventing excessive stress which can cause burnout Occupational health and safety: creating healthy and safe working environments Wo
Slide 15: Diversity and inclusion
Diversity and inclusion Treating all our people equally, in all circumstances Diversity policy specifies how we approach the topics of diversity and inclusion at KBC Main focus of the policy lies on gender Further actions: - Yearly tracking of pay gap and gender bias in reward and compensation
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Slide 17: Our responsibility
Our responsibility Responsible behaviour as the foundation of everything we do Responsible behaviour of all our employees is crucial to have an effective and credible sustainability strategy - Act according to KBC values (Respectful, Responsive, Results-driven) - Accountability of each employee to
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Slide 19: Our sustainability policies and approach to sustainable finance
+ Applicable to business activities + Strict exclusion criteria + Updated regularly + Externally challenged Our sustainability policies Our approach to sustainable finance + Own investments and investments for our clients + Financing with social impact + Strict sustainability criteria * Social bond
Slide 20: Our approach to sustainable finance
Our approach to sustainable finance • We use our core operations as tools to stimulate the most sustainable activities of our clients and supporting them in their sustainability transition • We are gradually restricting the most harmful activities • Steadily aligning offered solutions with EU sustai
Slide 21: Updated KBC Sustainability Policy Framework
Updated KBC Sustainability Policy Framework A solid sustainability framework with strict sustainability policies is the backbone of our business activities • Applied to all our business activities • Focus on human rights, environment, climate, biodiversity and sensitive and controversial societal is
Slide 22: Sustainable investing
Sustainable investing On behalf of our clients and in our own investments Responsible Investing (RI) on behalf of our clients • Pioneer in RI solutions for our clients for over 30 years • RI preferred investment solution in all our core countries * The table including its footnotes can be found in t
Slide 23: Social impact financing
Social impact financing • Financing and insuring projects that contribute to and provide access to important social services such as education, basic infrastructure, essential services, healthcare and employment. • Focusing on accessibility and affordability of products and services • 2023: Launched
Slide 24: Our commitment to the environment and climate action
Our commitment to the environment and climate action KBC is working on reducing its environmental impact within the framework of its Sustainable Finance Programme. Climate change mitigation and adaptation was its primary focus The programme core has been expanded to also include the themes of
Slide 25: Our direct footprint
Our direct footprint Measure • Calculations include Scope 1, Scope 2 and part of our Scope 3 emissions • In 2023 for the first time also assessed our direct biodiversity impact none of our buildings are located in strictly protected areas Reduce • Reducing our impact is the most important part of
Slide 26: Contribution to environmental objectives
Our indirect impact Contribution to environmental objectives Lending Our 2023 Sustainability Report includes more elaborate reporting on lending contributing to environmental objectives than previous years. We provide: 1. A breakdown per type of financed activity (table 5.3) 2. An overview of Sustai
Slide 27: Our indirect impact: Contribution to environmental objectives
Our indirect impact Contribution to environmental objectives Green Asset Ratio • In the 2023 Sustainability Report, we report for the first time on our Green Asset Ratio (GAR) i.e. the Taxonomy alignment percentages for the assets of our credit institutions. • We distinguish • Mandatory GAR (see def
Slide 28: Our indirect impact: Risk management
Our indirect impact Risk management • ESG risks are identified and defined in our risk taxonomy. • Climate-related and other ESG risks confirmed as a top risk for KBC. • Solid risk management: - Embedded in existing risk management processes. - Top level representation of Group risk and Group Credit
Slide 29: Our indirect environmental impact: Lending portfolio
Our indirect environmental impact Lending portfolio • We calculate or estimate the scope 3 emissions related to our entire lending portfolio. • Focusing in particular on the sectors and product lines that are the most carbon intensive our ‘White Paper sectors’ • The White Paper sectors cover: • 77
Slide 30: Loan portfolio assessment
Loan portfolio assessment Second yearly target progress report About 55% of total financed scope 1 and 2 emissions within scope of climate targets * The table including its footnotes can be found in the 2023 Sustainability Report p. 72 31
Slide 31: Loan portfolio assessment: Climate progress dashboard (1/2)
Loan portfolio assessment: Climate progress dashboard (1/2) 32
Slide 32: Loan portfolio assessment: Climate progress dashboard (2/2)
Loan portfolio assessment: Climate progress dashboard (2/2) 33
Slide 33: Loan portfolio assessment
Loan portfolio assessment White Paper sectors White Paper updates focused on: • Portfolio overview (target scope): Including exposure (outstanding and/or granted) and financed GHG emissions • Portfolio climate targets: 2021 baseline, 2023 progress and 2023 KBC pathway value • Portfolio actions and p
Slide 34: White Paper sectors
White Paper sectors Energy * The white papers can be found in the 2023 Sustainability Report pp. 75-91 35
Slide 35: Q&A
Q&A 36
Slide 36: Thank you!
Thank you!
Slide 37: Our other reports
Difeverdiy THE NEXT LEVEL Our other reports —@., Moving forward KBC together. 38