Responsible investing
Sustainable investing, responsible investing and ESG investing are basically the same thing.
We limit ourselves to the term ‘responsible investing’, i.e. investments that embrace the importance of environmental, social and governance issues.
What is responsible investing?
Responsible investing funds enable you to invest in companies and countries that embrace ESG themes:
- Respect for the environment
- Social responsibility and respect for human rights
- Sound governance
Harmful or controversial activities, such as those involving weapons, tobacco and fossil fuels, are excluded.
Does investing responsibly affect the return?
Our own research shows that responsible investment funds generate similar long-term returns to traditional funds.
Responsible investing means you have an impact on the business world
We enter into a dialogue on your behalf with the companies you invest in and help determine their operations 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 hold up against those of conventional funds, especially over the longer term.
Nathalie Bally – Responsible Investing Expert at KBC
Why choose KBC for your investments?
1. More than 30 years’ experience in responsible investing
KBC launched its first fund for responsible investment back in 1992, becoming the first to do so in Belgium. We regularly review our selection method and develop new investment solutions.
2. Straightforward and strict selection method
No KBC fund invests in companies that are involved in the production of tobacco products, thermal coal or controversial weapons. Controversial regimes and human rights abusers are excluded, too.
Learn more about our general exclusion policy (PDF file)
Responsible investing funds are subject to additional screening, with clearly defined thresholds applying to companies involved in conventional weapons, fossil fuels, fur and adult entertainment.
See a full overview of negative screening criteria (PDF file)
We publish in full transparency the results of our screening of all companies and countries.
Lastly, we apply different positive selection methodologies (including for responsible funds, eco-thematic funds and impact investing funds). See our ‘Three ways to invest responsibly at KBC’ for more details.
3. Support from independent experts
Several times a year, we hold meetings with the Responsible Investing Advisory Board, an advisory board of 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
Our approach is based on three different perspectives. You choose which perspective best suits your funds.
- Responsible funds: you invest in companies and countries that operate sustainably and minimise their impact on the climate
- Eco-thematic funds: you invest in companies that provide solutions to problems such as climate change, the transition to alternative energy, water scarcity or societal challenges
- Impact investing: you invest in companies that have a positive impact on society or the environment
Learn more about our investment policy for responsible investing funds (PDF file)
