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KBC Asset Management NV

PRI reporting framework 2020

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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.

SUSTAINABLE INVESTMENTS

Socially responsible investment
(SRI) has developed in recent years from a niche market to a mainstream segment. KBC has been a pioneer in the field of sustainable investment for almost 30 years. We view it as another powerful tool with which to help achieve a more sustainable society. 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. In 2019, we were able to increase the volume of SRI funds to 12 billion euros, putting us firmly on track to achieve our 2021 target.

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]

Businesses whose activities or the way they pursue those activities are seriously at odds with the principles of sustainability are automatically excluded. We operate exclusion criteria that apply to all KBC funds as well as ones specifically for the SRI funds.

Each sustainable universe at Asset Management is subject to positive as well as negative screening. What this means is that we examine which companies and governments are fully committed to sustainability or whose products and services have a positive impact on the environment and society. We apply three types of positive screening: Best-in-Class (BiC), Theme and Impact Investing. Once sustainable universes have been finalised, the managers of the portfolios can select shares and corporate and government bonds.

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 mining sector, 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 companies that make a sustainable contribution to solving a societal problem like climate change, the threat of water shortages and the quest for alternative energy.

- 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.

 

TRANSPARENCY

We 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. 

01.6. Additional information [Optional].

          
        

SG 01 CC. Climate risk (Private)


SG 02. Publicly available RI policy or guidance documents

 

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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