Responsible investing
Sustainable investing, responsible investing and ESG investing are basically the same thing. At KBC, we limit ourselves to the term ‘responsible investing’, i.e. investments that embrace the importance of environmental, social and governance issues. We make a point of offering responsible investments as first choice, which is a good thing for the generations to come.
What is responsible investing?
Responsible investing funds enable you to invest in companies and countries that embrace the ESG themes of Environment, Social and Governance. They also exclude harmful or controversial activities such as those involving weapons, tobacco and fossil fuels.
This specific focus does not mean that you have to compromise on return. Our research shows that social and financial returns can go hand in hand: funds that invest responsibly generate similar long-term returns to conventional funds.
Lastly, responsible investing means you have an impact on the business world. KBC enters into a dialogue on your behalf with the companies you invest in and helps determine their operations by exercising voting rights at general meetings.
Financial returns are important, and that also applies to responsible investing. Even within the academic world, there is no consensus regarding the expected financial returns of responsible investing funds versus conventional funds. KBC believes that the returns generated by responsible investing funds hold up against those of conventional funds, especially over the longer term.
Nathalie Bally - Expert in responsible investing at KBC
Three reasons to invest responsibly with KBC
KBC launched its first fund for responsible investment back in 1992, making us a pioneer in Belgium in what was then still a niche market. Since then, we have built up more than 30 years’ expertise and we continue to play that pioneering role. For example, we regularly review our selection method and develop new investment solutions.
No actively managed KBC fund invests in tobacco, thermal coal or controversial weapons. Controversial regimes and human rights abusers are excluded, too. Find out more about the general exclusion policy.
Funds that invest responsibly are moreover subject to additional screening. Companies that are active in the conventional weapons, fossil fuels, fur and adult entertainment sectors are also excluded. See a full overview of negative screening criteria.
We publish in full transparency the results of our screening of all companies and countries.
Lastly, we apply three positive selection methodologies: Responsible funds, ECO-thematic and Impact Investing. You will find more on this below under Responsible investing with KBC’.
We hold quarterly meetings with the Responsible Investing Advisory Board, an advisory board of eight independent experts who challenge and inspire our policies.
They are all academics who:
- Provide feedback on the sustainability research methodology
- Ensure the transparency of research
- Advise on company and country exclusions
- Discuss which companies should be included in the responsible investment universe
Learn more about the operation and composition of the Responsible Investing Advisory Board.
Responsible investing with KBC
All KBC investment products that invest responsibly carry the label 'Towards Sustainability', an initiative of Febelfin. This means that the funds follow a clear sustainability strategy, exclude very harmful or activities and have a transparent policy on socially controversial practices such as the death penalty.
In addition, KBC’s approach is based on three positive perspectives. You choose your responsible investment funds based on these three perspectives:
- Responsible funds: invest in companies and countries that promote sustainability and make efforts to mitigate climate change.
- ECO-thematic funds: invest in companies that provide sustainable solutions to societal challenges such as climate change or water policy.
- Impact Investing funds: invest in companies that have a positive impact on society and/or the environment through their products and/or services.
Get inspired as an investor
Wondering whether investors can benefit from corporate social responsibility? Be inspired by the articles and podcasts in our ‘Make a Difference’ series.
You will find all documentation on Responsible Investing and KBC's Responsible Investing funds in this overview.
