Strategically responsible to stakeholders

Corporate Social Responsibility is a crucial element of how business is carried out within KBC, and it permeates every business unit in a pertinent manner. Management is in charge of ensuring a successful combination of a long term vision of leadership and operational know-how at the various operational units. In the past years, KBC was able to build a successful monitoring and a concise overview of the degree to which CSR related policies are implemented throughout the Group. The clear determination of Key Performance Indicators in the interface with KBC domains of activities has allowed the Group to identify its domains of action in relation to stakeholders. KBC aims through its activities to contribute to the economic, social and ecological advancement of the communities it serves.

KBC’s business strategy relies on a set of principles, which are embedded in its Code of Conduct and which model its responsible behaviour:

• Fairness
• Reasonableness
• Openness
• Transparency
• Discretion
• Privacy Insurance

KBC gets inspiration from its principles to deal with its stakeholders:

Customers
KBC’s responsible vision provides a clear framework to devise a group strategy to meet its customers’ borrowing requirements at reasonable, market-conform rates, which compensate it for risks linked to its financial products. Before granting any credit, KBC rolls out a preliminary analysis which is not solely focused on purely financial and economic aspects of the credit but also on relevant social and ecological parameters. In order to ensure the broadest range of investment preferences, KBC develops investment products with diverse risk profiles and features a broad range of Sustainable Responsible Investments, which incorporate ethical investment principles. As part of this strategy, KBC Asset management has set up its own research team to screen, according to sustainability standards the companies present in its portfolio while being assisted by an ad-hoc External Advisory Board in charge of providing support to the screening dynamics. In December 2008, KBC concluded the calendar year with a great nomination, shared with other 203 responsible companies worldwide, as the Group was praised for “Realising Rights and Business” by the Human Rights Resource centre” an independent non-governmental organisation engaged in promoting awareness of business and human rights. The recognition came from Mary Robinson, former UN High Commissioner for Human Rights and currently President of “Realising Rights: the Ethical Globalisation Initiative”.

Personnel
KBC’s workforce can rely on a working environment characterised by equal opportunities and zero tolerance towards discrimination. KBC believes in forging a long lasting working relationship achieved through the provision of the right balance between the individual’s professional commitment, which contributes to the company’s capabilities and his or her personal development in the broadest sense of the word. This is achieved at group level: through a competitive pay package coupled with a caring touch when problems arise, the provision of flexible working arrangements, employee’s mobility plans and social schemes. KBC makes available to its employees an extensive range of opportunities for development, giving them the possibility to choose from a number of integrated types of training which complement and reinforce each other (conventional learning, individual study, e∞learning, learning on the job and mentoring opportunities). KBC believes in a human resources approach which can match the concept of a high quality management, while boosting open dialogue and corporate culture. A 360º appraisal system is in place at Group level, following the belief that this approach is essential to the creation of competitive development opportunities for our young “potential”. A good social dialogue is at the basic building block of KBC corporate culture and for this reason, a cohesive information flow is always made available through internal communication channels. KBC works very closely with Trade Unions, holding monthly talks with the works council and its committees, and consulting with the health and safety committees and union representatives.

Environment
KBC applies a rational use of resource principle in all of its actions and covering all of the relevant aspects. KBC endorses sustainable building principles and is particularly careful to the organisation of the work stations of its employees, in order to combine emission savings and motivation boosting for its workforce. Such balanced synergies are also applied to the relevant expectations from its suppliers of services and products. Environmental risks are also part of the account credit and insurance policies development as KBC Group adopted the Equator Principles since 2004.

The KBC group environmental strategy was developed with the help and support of ARGUS, an independent Belgian not-for-profit organisation created in 1970 with the support of KBC and later (in 2006) also endorsed by CERA (a Belgian Financial cooperative and core shareholder of KBC). ARGUS aims to inform and motivate the community to apply environmentally friendly solutions to their lives and work. In order to do this, ARGUS takes many different initiatives, often also in collaboration with many local partners. Within the framework of KBC Autolease, its leasing cars concept, fleet managers have the possibility to purchase ‘CO2 certificates’ to compensate for the CO2 emissions generated by the cars in their fleet. As part of a special collaboration with ARGUS, the money raised from the certificates is used by ARGUS Climate Fund towards reforestation projects managed by third parties. The off-setting occurs through VER (Verified Emission Reductions) investments in climate projects in third world countries.

Global communities
KBC’s true essence as a responsible citizen is even more perceived in its direct actions towards the local community around it. As such, KBC supports and sponsors associations and organisations that are intertwined in the local texture, in order to make sure that it can act as reference point to the community. “Speaking the same language” is the motto behind the community involvement strategy at KBC. Its approach is so successful due to the ability to rightly assess the needs and matching them with the right partners and resources needed to find sustainable opportunities for all. KBC recalls its employees how much it values its role as a sustainable employee also within society, as it carefully listens to the different activities they are involved in, to find and form new alliances and cement new partnerships while backing up projects already chosen by its workforce.

KBC also goes beyond the local community calls by looking at needs of far∞away communities in various Less Developed Countries (LDCs) through its microfinance commitment, stemming from its long lasting cooperation with BRS (Belgian Raiffeisen Foundation). As one of the main sponsors of BRS, KBC is actively involved, through an informal group of staff, in various international microfinance and micro insurance projects. As part of the “Employee Involvement Programme KBCBRS” those employees who choose it can devote part of their time to work on international microfinance projects. The active members of the “KBC steunt BRS” support group meet regularly to discuss and plan with BRS representatives the monthly needs and future targets.

Further information: Flavia Micilotta, CSR Communication Officer, KBC Group, flavia.micilotta@kbc.com, www.kbc.com