Responsible investment
Sustainable investment, responsible investment or ESG investment: what’s the best term to use? Today, we are talking about 'responsible investment': investment that explicitly acknowledges the importance of he environment, social issues and good governance. We also follow new European regulations that reserve the term 'sustainable' for a specific number of activities and products.
What is responsible investment?
Responsible investment funds invest in companies and countries which that embrace the ESG themes of Environment, Social and Governance.
This specific focus does not mean that you have to compromise on your returns. Research shows that social and financial returns can go hand in hand: funds that invest responsibly provide similar long-term returns to traditional funds.
Finally, responsible investment means you have an impact on the business world. KBC you enter into a dialogue with the companies in which you invest and help to determine their course through the exercise of 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 need not be inferior to 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, including those that don’t make it through the selection procedure.
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 companies 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 investing funds based on these perspectives:
- Responsible funds: invest in companies and countries that promote sustainability and make efforts to mitigate climate change
- ECO-themed funds: invest in companies that provide sustainable solutions to societal challenges such as climate change, the transition to alternative energy sources or water scarcity
- 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
You will find all documentation on Responsible Investing and KBC's Responsible Investing funds in this overview.