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KBC Asset Management NV

PRI reporting framework 2019

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Investment policy

SG 01. RI policy and coverage

New selection options have been added to this indicator. Please review your prefilled responses carefully.

01.1. Indicate if you have an investment policy that covers your responsible investment approach.

01.2. Indicate the components/types and coverage of your policy.

Select all that apply

Policy components/types

Coverage by AUM

01.3. Indicate if the investment policy covers any of the following

01.4. Describe your organisation’s investment principles and overall investment strategy, interpretation of fiduciary (or equivalent) duties,and how they consider ESG factors and real economy impact.

FOCUS ON SUSTAINABLE INVESTMENTS

We want to limit the adverse impact we have on society by focusing on sustainable investments. KBC is both the pioneer and the market leader in Belgium in sustainable and responsible investing. We want to give our clients the opportunity to invest in sustainable companies and countries that recognise their social and environmental responsibility. This allows us to jointly contribute to a more sustainable society and to help limit the adverse impact businesses can have on society. We aim to extend our offering of sustainable and responsible investment products, which are gradually shedding their ‘niche’ status and becoming more and more mainstream. We actively promote sustainable investments as an equal alternative to conventional investment products. Thorough screening is applied to determine which companies and countries belong to the investment universe for sustainable and socially responsible investment solutions. We also review our sustainability criteria on an ongoing basis. Since November 2017, for instance, businesses active in the extraction or processing of fossil fuels have been removed completely from our SRI fund offering, and more stringent criteria apply for utility companies to meet the selection criteria.

01.5. Provide a brief description of the key elements, any variations or exceptions to your investment policy that covers your responsible investment approach. [Optional]

THREE TYPES OF SUSTAINABLE FUNDS

- Best-in-class funds invest in companies from a broad range of sectors, that are the best performers in terms of sound corporate governance, social policy and environmental approach. By working only with the best 40% of businesses, and as few as 20% in the ining and energy sectors, companies are challenged to operate more sustainably. The funds also include bonds from the most sustainable countries. Criteria for this include the welfare of the population, care of the environment and international relations.

- Theme funds invest in firms that pursue solutions in the area of climate change, water shortages and alternative energy sources.

- Impact Investing funds comprise 50 innovative businesses that are completely rethinking themes like mobility, energy, health and population ageing, and formulating surprising solutions to them. These are often slightly smaller (listed) players, but they have still come through KBC Asset Management’s stringent screening.

STRINGENT SCREENING: EXCLUSIONS

Thorough screening, based on strict and clear rules, is carried out to determine which companies and countries qualify for the investment universe for sustainable and responsible investment solutions. We exclude investments in certain companies due to their controversial activities. We also review our sustainability criteria on an ongoing basis. KBC Asset Management places a great deal of emphasis on transparency, which is why it makes all its research results and the full list of exclusions available on www.kbc.be.

 

INDEPENDENCE

Sustainable and responsible investing stands or falls by its credibility. The sustainability policy and criteria are therefore monitored by the SRI Advisory Board, which is fully independent of KBC. The body consists of leading academics from several universities, who are experts in fields like human rights, business ethics, biology and ecology. They operate in their own name and do not represent the institutions at which they are employed. They decide which screening methodology we should use and set the criteria for rating companies. They also ensure that screening is complete, thorough and accurate.

 

PROXY VOTING

KBC Asset Management pursues an active policy of proxy voting and engagement. By exercising the rights attached to shares held by the investment funds and by making our voice heard at the annual general meetings of these companies, KBC aims to defend the interests of our clients and investors. We do so by proxy voting, when deemed appropriate and necessary. KBC Asset Management applies this active voting policy to several  different themes, recognising that business, corporate governance and sustainability issues all determine the value of a company in the medium and long term. All these factors can have a significant impact on value creation or the return enjoyed by clients and investors. 

To contribute further to the growing problem of climate change, KBC has also decided to make its sustainable investments ‘fossil free’. Consequently, all KBC SRI funds divested themselves of their investments in coal, oil and gas companies at the end of 2017. he focus in 2017 was on raising awareness among our branch staff through campaigns and information sessions. Thanks to this enhanced knowledge and awareness, our branch staff are now offering sustainable investments proactively in addition to conventional nvestments. The fruits are already appearing: the target we set ourselves in 2016 of doubling the volume of SRI to 5 billion euros by 2018 had already been reached by the middle of 2017. This means that sustainable investments already account for approximately 6.5% of total client portfolios. We have decided in the meantime to raise our target to 10 billion euros of SRI by 2020.

 

 

 

Commitments

UN Global Compact

UN Guiding Principles on Business and Human Rights

UN Environment Programme Finance Initiative (UNEP FI)

Principles for Responsible Investment (PRI)

Task force on Climate-related Financial Disclosure

OECD Guidelines for Multinational Enterprises

Equator Principles

COP 21

Belgian SDG Charter

 

 

 

 

01.6. Additional information [Optional].

          
        
I confirm I have read and understood the Accountability tab for SG 01 I confirm I have read and understood the Accountability tab for SG 01

SG 01 CC. Climate risk (Private)


SG 02. Publicly available RI policy or guidance documents

New selection options have been added to this indicator. Please review your prefilled responses carefully.

02.1. Indicate which of your investment policy documents (if any) are publicly available. Provide a URL and an attachment of the document.

URL/Attachment

02.2. Indicate if any of your investment policy components are publicly available. Provide URL and an attachment of the document.

02.3. Additional information [Optional].


SG 03. Conflicts of interest

03.1. Indicate if your organisation has a policy on managing potential conflicts of interest in the investment process.

03.2. Describe your policy on managing potential conflicts of interest in the investment process.

Code of conduct for conflicts of interest

Conflicts of interest can exist or arise within management companies. KBC Asset Management therefore has a code of conduct for conflicts of interest in order to detect, solve and monitor any such conflicts. It ensures that we operate fairly in line with the client’s interests.

https://multimediafiles.kbcgroup.eu/ng/published/AM/PDF/AM_policy_ConflictsOfInterest_EN.pdf

03.3. Additional information. [Optional]


SG 04. Identifying incidents occurring within portfolios (Private)


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