Responsible Investing report

KBC Institutional Fund Euro Bonds Responsible Investing Classic Shares KAP
BE0058979031
SFDR Classification: art.8

Publication date: 23-02-2024

Responsible Investing report

Your responsible fund is actively screened and adjusted to maximise sustainability. Based on a number of sustainability indicators, you can see to what extent your fund is achieving the predefined goals.

Click on the arrows next to each indicator for the most recent information.

The country ESG score assesses how well the government policies of countries perform in terms of the environment, social issues and corporate governance (ESG). The higher the score, the greater the number of countries that are committed to sustainable development.

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Fund
81.12

Target
Higher than 77.00

External circumstances, such as market movements and updates of external data, may lead to the above targets not being met. In such cases, the fund manager will bring the fund into line with its objectives as soon as possible, at all times in the sole interests of the investor.

Source: KBC Group Economics - Data coverage rate: 100.00% fund

The CO2 intensity (carbon intensity) of a country indicates how many tonnes of CO2 that country emits per million USD of Gross Domestic Product (tCO2e/$M GDP).

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Fund
349.16

Target
Lower than 422.53

Source: S&P Trucost Limited © Trucost (2024) - Data coverage rate: 100.00% fund

Did you know that one ton of CO2 is equal to:

70 x flights from Brussels to Rome
500 x annual CO2 uptake of a tree

The fund takes into account in its investment decisions all Principal Adverse Impacts on sustainability factors (PAI) such as the environment, social framework, respect for human rights, anti-corruption, ... .
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All indicators listed in Table 1 as well as the relevant indicators from Tables 2 and 3 of Delegated Regulation 2022/1288 (Annex 1) are taken into account. The most important are:

  • Environment (countries): PAI 15
    This fund has a carbon intensity reduction target for countries.
  • Social (countries): PAI 16
    This fund does not invest in government bonds issued by countries where social violations occur.

Some terms explained

Economic activities can have positive but also negative effects on sustainability factors. Principal Adverse Impacts (PAI) indicate the main adverse effects of investment decisions on sustainability factors, such as the environment, the social framework, respect for human rights, anti-corruption and the like. Learn more at www.kbc.be/SRD.

The CO2 intensity of a country indicates how many tonnes of CO2 that country emits per million USD of Gross Domestic Product (tCO2e/$M GDP).

The number of tonnes of CO2 emitted by a country is the sum of:

  • CO2 emissions resulting from the domestic production of goods and services for domestic consumption and export
  • CO2 emissions resulting from the import of goods and services, back to the country of origin

At fund level, this figure represents the weighted average of all CO2 intensities of the underlying countries represented in the fund and for which data is available. 

The data coverage rate reflects the proportion of investment instruments for which relevant data is available, expressed as a percentage. In calculating this, technical elements such as cash or derivatives are not taken into account.

ESG stands for Environment, Social and Governance and refers to the three themes that are central to a sustainability screening.

Bonds to finance green and/or social projects (‘ESG bonds’). We distinguish three types:

1. Green bonds: for financing projects which have a positive impact on the environment.

2. Social bonds: for financing projects which have a positive impact on society.

3. ESG bonds: for funding projects which have a positive impact on both the environment and society.

Both companies and governments are authorised to issue these types of bonds. To qualify as an ESG bond with KBC Asset Management, the bonds must comply with the International Capital Market Association (ICMA) principles for using the proceeds.

The ESG country score assesses how well the government policies of countries perform in terms of the environment, social issues and corporate governance (ESG). The higher a country’s ESG score on a scale of 0 to 100, the greater the number of countries that are committed to sustainable development.

The score is determined from five perspectives:

  1. General economic performance and stability;
  2. Socio-economic developments and public health;
  3. Equality, freedom and rights of all citizens;
  4. Environment;
  5. Security, peace and international relations.

At fund level, this figure represents the weighted average of all ESG scores of the underlying countries in the fund for which data is available. The specific ‘target’ objectives for a fund, as well as the benchmark and/or a reference portfolio based on a certain target allocation against which these objectives are compared, can be found at www.kbc.be/investment-legal-documents > Investment policy for responsible investing funds.

This Board is made up of independent members whose sole responsibility is to supervise the approach and activities of the specialist researchers of KBC Asset Management NV.  Any changes KBC Asset Management makes to its responsible investment methodology must pass their test. In this way, KBC Asset Management keeps abreast of social trends.

The Sustainable Finance Disclosure Regulation (SFDR) is a European Regulation governing sustainability disclosures in the financial sector. It divides funds into three categories:

  • Article 6 funds: funds that neither have sustainable investment as their objective, nor do they promote environmental and/or social characteristics.
  • Article 8 funds: funds that promote environmental and/or social characteristics.
  • Article 9 funds: funds that have sustainable investment as their objective.

Companies or governments whose activities or the way in which they carry them out run seriously counter to the principles of responsible business are excluded. We distinguish two types of exclusion criteria:

  • Exclusion criteria that apply to all KBC funds, such as serious violations of the United Nations Global Compact principles, human rights abuses, controversial regimes, tobacco producers, coal mining, etc.
  • Exclusion criteria specific to responsible investment funds, such as companies linked to or active in conventional weapons, fossil fuels, gambling, adult entertainment, fur and speciality leather, irresponsible extraction of palm oil, etc..

Your responsible fund is actively screened and adjusted to maximise sustainability. Based on a number of sustainability indicators, you can see to what extent your fund is achieving the predefined goals.

Click on the arrows next to each indicator for the most recent information.