Responsible Investing report

KBC Equity Fund Global Value Responsible Investing Classic Shares DIS
BE6338506411
SFDR Classification: art.8

Publication date: 14-06-2024

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 ESG risk score for companies measures the difference between a company's exposure to sector-relevant environmental, social and governance (ESG) risks and the extent to which the company covers these risks. A lower score indicates less sustainability risk for the company in question.

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Fund
18.36

Target
Lower than 21.40

Source: Morningstar Sustainalytics © Morningstar Sustainalytics (2024) - Data coverage rate: 100.00% fund.

The greenhouse gas intensity of a company indicates how many tonnes of CO2 equivalents that company emits (Scope 1+2) per million USD of turnover (tCO2e/$M turnover).

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Fund
71.20% decrease compared to end 2019 reference value

Target
50% decrease by 2030 compared to end 2019 reference value
Within the sector, 2019 is generally accepted as the reference year for the target.

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.

FundTarget
2019-12-31177,42
2020-01-31124,19
2022-11-04113,35
2023-02-28105,22
2023-03-31101,9
2023-04-3098,01
2023-05-26111,64
2023-05-31104,88
2023-06-30106,59
2023-07-24110,79
2023-07-3192,66
2023-08-3190,02
2023-09-21110,79
2023-09-3096,99
2023-10-26110,79
2023-10-3171,44
2023-11-28109,95
2023-11-3066,63
2023-12-14109,95
2023-12-3164,61
2024-01-3162,86
2024-02-2964,15
2024-03-2891,9
2024-03-3154,66
2024-04-3057,77
2024-05-1383,33
2024-05-3151,09
2030-01-0188,71
Source: S&P Trucost Limited © Trucost (2024) - Data coverage rate: 100.00% fund - Target: see table 2 'Reduction path greenhouse gas intensity' at www.kbc.be/investment-legal-documents> Investment policy for responsible investing funds.

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

Companies which seriously violate the United Nations Global Compact (UNGC) sustainability principles are excluded by KBC Asset Management from its universe of responsible funds.

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Fund

100% In line with UNGC
Source: MSCI, Morningstar Sustainalytics © Morningstar Sustainalytics (2024) - Data coverage rate: 98.98% fund.

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:

  • Greenhouse gases: PAI 3
    This fund has a carbon greenhouse gas intensity reduction target for companies.
  • Greenhouse gases: PAI 4
    This fund does not invest in companies that are active in the fossil fuel sector.
  • Biodiversity: PAI 7
    This fund does not invest in companies that have major or serious controversies related to land use and biodiversity or in companies with activities that have an adverse impact on biodiversity and do not take sufficient measures to reduce their impact. 
  • Social affairs and employees: PAI 10
    This fund does not invest in companies that seriously violate UNGC principles and OECD guidelines.
  • Social affairs and employees: PAI 14
    This fund does not invest in companies that are active in controversial weapons.

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 greenhouse gas intensity of a company indicates how many tonnes of CO2 – equivalents that company emits per million USD of turnover (tCO2e/$M turnover). The number of tonnes of greenhouse gases emitted by a company is the sum of:

  • the direct greenhouse gas emissions resulting from of the company's own activities (Scope 1)
  • the indirect greenhouse gas emissions resulting from the generation of purchased electricity (Scope 2)

The indirect greenhouse gas emissions resulting from activities of, for example, suppliers and customers (scope 3) are not included in that sum, as this scope 3 data largely depends on assumptions and is not disclosed by companies.

At fund level, this figure represents the weighted average of all greenhouse gas intensities of the underlying companies in which the fund invests and 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.

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.

The ESG risk score for companies measures the difference between a company's exposure to sector-relevant environmental, social and governance (ESG) risks and the extent to which the company covers these risks. The lower a company's ESG risk score on a scale of 0 to 100, the less its sustainability risk. 

The company ESG risk score is determined from three perspectives:

  1. Environment: waste policy, water intensity and greenhouse gas emissions;
  2. Social: employment conditions, workforce diversity and union rights;
  3. Governance: independence of the board of directors and transparency on pay and taxes.

At fund level, this figure represents the weighted average of all ESG risk scores for the underlying companies in which the fund invests and 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 United Nations' Global Compact (UNGC) has drawn up 10 sustainability principles in the area of human rights, employment rights, environment and combating corruption, which all businesses have to respect.

For its responsible investing funds, KBC Asset Management excludes all companies that seriously violate these principles,  based on Morningstar Sustainalytics' Global Standard Screening and Controversy Research and MSCI's Controversy Research.

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, etc.

You can find all the exclusion criteria at www.kbc.be/investment-legal-documents > Exclusion policies for Responsible Investing funds.

This report contains information (the “Information”) sourced from MSCI Inc., its affiliates or information providers (the “MSCI Parties”) and may have been used to calculate scores, ratings or other indicators. The Information is for internal use only, and may not be reproduced/redisseminated in any form, or used as a basis for or a component of any financial instruments or products or indices. The MSCI Parties do not warrant or guarantee the originality, accuracy and/or completeness of any data or Information herein and expressly disclaim all express or implied warranties, including of merchantability and fitness for a particular purpose. The Information is not intended to constitute investment advice or a recommendation to make (or refrain from making) any investment decision and may not be relied on as such, nor should it be taken as an indication or guarantee of any future performance, analysis, forecast or prediction. None of the MSCI Parties shall have any liability for any errors or omissions in connection with any data or Information herein, or any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages.