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KfW Bankengruppe

PRI reporting framework 2018

You are in Strategy and Governance » Objectives and strategies

Objectives and strategies

SG 05. RI goals and objectives

05.1. Indicate if and how frequently your organisation sets and reviews objectives for its responsible investment activities.

05.2. Additional information. [Optional]

Planning regarding the three KfW’s treasury portfolios is part of the bank-wide annual planning process.

With regard to sustainability activities in particular, a description of KfW’s objectives with deadlines are summarized in the 2015-17 sustainability programme (http://sustainability2015.kfw.de/reports/kfw/annual/2015/nb/English/8530/kfw-sustainability-programme-2015-2017.html). The programme was drawn up by KfW’s sustainability officers of each business division and the group-level environment and climate steering committee. Regular progress on achieving these objectives is reported in the KfW sustainability report and the interim report “Fakten-Update”. For more details, please see the 2017 Fakten-Update: https://www.kfw.de/PDF/Download-Center/Konzernthemen/Nachhaltigkeit/Faktenupdate-Nachhaltigkeit-2017.pdf

In addition, the impacts and performance of the liquidity portfolio, the Green Bond portfolio and the ABS promotional portfolio are measured and discussed in the context of the regular monitoring and reporting processes in KfW’s treasury department.


SG 06. Main goals/objectives this year

06.1. List the main responsible investment objectives that your organisation set for the reporting year.

Responsible investment processes

Key performance indicator

          Publishing Information about RI activities and awards, Green Bond portfolio, etc. in the in-house media and company website
        

Progress achieved

Goal achieved.

  • Press release and internal news release about the extension of the promotional mandate and the increase of the targeted volume of the Green Bond portfolio to EUR 2 billion
  • Press release and internal news release about the new sustainable investment approach for the liquidity portfolio
  • Information about current RI initiatives during the Group Environmental and Climate Steering Committee with all sustainability officers

Key performance indicator

          Individual engagement with bonds issuers
        

Progress achieved

Goal achieved.

In 2017, in addition to our regular annual engagement activities with all issuers of the liquidity portfolio, we had in-person meetings with issuers whose sustainability score was at the time of the engagement below our internal threshold. During the meetings, we explained our sustainable investment approach and encouraged them to get in touch with Sustainalytics and increase transparency regarding their sustainability activities.

Key performance indicator

          Continued development of the sustainable Investment approach
        

Progress achieved

Goal achieved.

Implementation of the new best-in-class approach in February 2017.

Financial performance of investments

ESG characteristics of investments

Key performance indicator

          Dialogue with ESG issuers with low ESG scores
        

Progress achieved

In accordance with our new best-in-class approach, we have the possibility to make our own analysis of a company and overrule the assessment of Sustainalytics. In 2017, we engaged with 4 issuers whose sustainability score was at the time of our engagement below our internal eligibility threshold. We encouraged them to get in contact with Sustainalytics. Out of these 4 companies, 2 improved their score during 2017.

Other activities

Key performance indicator

          Active contribution to a RI initiative
        

Progress achieved

Goal achieved. KfW is active in all three German initiatives launched in 2017: founding member and financial sponsor of the initiative Green Finance Cluster Frankfurt, signatory of the “Frankfurt Declaration” of the Accelerating Sustainable Finance initiative and member of the steering committee of the Hub for Sustainable Finance.

Key performance indicator

          Active participation in conferences promoting responsible investments
        

Progress achieved

Goal achieved. E.g.: Participation as speaker to the roundtable on sustainable investment organized by the Deutsche Pensions- & Investmentnachrichten and Financial Times, participation to the panel on Green Bonds at the ICMA Asset Management and Investor Council conference, keynote speech on sustainable finance at the Commerzbank Central Banks conference and at the OMFIF-DZ Bank roundtable “Greening Infrastructure Finance”.

Key performance indicator

          Publication of case studies
        

Progress achieved

Contribution to the SEB Green Bond Market newsletter by providing a case study on KfW Green Bond portfolio.

06.2. Additional information.


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