Summary of responses to the PRI reporting and assessment tool 2008

KBC Asset Management

Organisational Overview
1. What were your organisation's total assets under management as of 31 December 2007 (in millions)?85000
Please select currencyEuro (EUR)
1a. If 'Other' was selected, please specify the other currency here
2. What category would best describe your organisation?
3. What proportion (in %) of your fund is defined benefit and what proportion (in %) is defined contribution? (please only answer this question if you answered  Pension or superannuation or retirement or provident fund or plan to Q2)
Defined benefit
Defined contribution
4. Please provide an overview of your asset mix as of 31 December 2007 (in %):
Listed equity (developed market, active)20
Listed equity (developed market, passive)3
Listed equity (emerging market, active)1
Listed equity (emerging market, passive)0
Fixed income - developed markets31
Fixed income - emerging markets2
Real estate or property2
Private equity1
Hedge fund1
Infrastructure0
Currency0
Commodities0
Cash10
Other (Please specify): capital protected mutual funds 29
capital protected mutual funds
5. Please indicate what percentage of your assets are managed internally and what percentage are managed externally (in %):
 
Internal
External
Listed equity (developed market, active)1000
Listed equity (developed market, passive)1000
Listed equity (emerging market, active)1000
Listed equity (emerging market, passive)00
Fixed income - developed markets1000
Fixed income - emerging markets1000
Real estate or property1000
Private equity1000
Hedge fund1000
Infrastructure00
Currency00
Commodities00
Cash1000
Other (Please specify): capital protected mutual funds 1000
capital protected mutual funds
6. Please provide the following contact details for your main PRI contact:
URL for webpage outlining the specific services and products your organisation has to assist signatories in fulfilling their commitments to the Principleskbcam.be/sustainableinvestment
Principle 1
8. Do you have a statement that makes specific reference to the integration of responsible investment (RI) or environmental, social and governance (ESG) issues within investment decision making and ownership practices?Yes, it is integrated into a broader statement
9. In what year were RI/ESG issues first formally addressed in a policy statement (integrated or independent)?2002
10. Has your statement that makes specific reference to the integration of RI or ESG issues been disclosed publicly?Yes
11. Please indicate how this statement that makes specific reference to the integration of RI or ESG issues can be obtained (a URL would be sufficient):https://multimediafiles.kbcgroup.eu/ng/published/KBCCOM/PDF/COM_MAR_Group_Investment_Policy_EN_0900dfde802dfa5d.pdf
12. For what percentage of your internal assets under management do you integrate RI/ESG issues into your internal investment decision-making processes? (in %)
Listed equity (developed market, active)100
Listed equity (developed market, passive)60
Listed equity (emerging market, active)100
Fixed income - developed markets100
Fixed income - emerging markets100
Real estate or property100
Private equity100
Hedge fund100
Cash100
capital protected mutual funds100
13. To what extent have you integrated RI/ESG issues into your internal investment decision-making processes?
Listed equity (developed market, active)To a moderate extent
Listed equity (developed market, passive)To a moderate extent
Listed equity (emerging market, active)To a moderate extent
Fixed income - developed marketsTo a moderate extent
Fixed income - emerging marketsTo a moderate extent
Real estate or propertyTo a moderate extent
Private equityTo a moderate extent
Hedge fundTo a moderate extent
capital protected mutual fundsTo a moderate extent
16. What proportion of your assets involve screening out or excluding stocks or sectors based on ethical (rather than long-term financial) criteria? (in %)100
17. Do you have any staff dedicated to RI/ESG issue analysis and/or implementation?
 
Dedicated
Combined full-time equivalents
Investment analyst24
Research analyst34
RI/ESG issue policy advisor11
(proxy) Voting specialist11
Engagement specialist12
Portfolio manager57
Other (Please specify):00
18. Which Board committee or other executive body has overall responsibility for RI/ESG issues?External advisory board for sustainability analysis Environmental advisory committee executive committee
19. Do you assess the capabilities of internal investment staff to incorporate RI/ESG issues?No
20. Do you assess the capabilities of external investment managers to incorporate RI/ESG issues?No Answer
21. Approximately what percentage of your internal non-ESG-specialist investment management staff received RI/ESG training in 2007? (in %)20
22. What forms of RI/ESG training or awareness raising have been invested in, encouraged or provided for internal staff (investment and other)?Informal internal training,Conferences,Regular briefings on key issues
23. Did you support the development of nonproprietary RI/ESG issue-related tools, metrics, analysis or academic research in 2007?To a small extent
24. Please indicate how the results of nonproprietary RI/ESG issue-related tools, metrics, analysis or academic research development you supported can be obtained if they have been disclosed publicly (a URL would be sufficient):https://www.kbcam.be/IPA/D9e01/~E/~KBCAM/~BZIUS4X/-BZIUS4B/BZIUSAV
25. Have you advocated/supported/ encouraged/participated in RI/ESG issue-related industry-wide training for investment professionals during 2007?Spoke at or attended conferences,Had dialogue or exchanges with peers,Instructed at universities or colleges
26. What was your most significant achievement in 2007 in relation to your implementation of Principle 1?NGO breakfast meeting on csr and sri Workshop with listed companies on SRI
27. What was your biggest barrier in 2007 with relation to your implementation of Principle 1?Enter text response here.
28. Please add any overall comments and clarifications related to Principle 1 here.Enter text response here.
Principle 2
29. To what extent did you employ the following approaches in your 2007 active ownership strategy for listed equities?
(Proxy) votingTo a small extent
Direct engagement conducted privatelyTo a small extent
Direct engagement conducted publiclyNot at all
Collaborative engagementNot at all
Filing shareholder resolutionsNot at all
Co-filing shareholder resolutionsNot at all
Other (Please specify): participation class action suitsTo a small extent
30. To what extent did you employ the following approaches in your 2007 active ownership strategy for all asset classes other than listed equity?
(Proxy) votingNot at all
Direct engagement conducted privatelyNot at all
Direct engagement conducted publiclyNot at all
Collaborative engagementNot at all
Other (Please specify):Not at all
31. Do you have a (proxy) voting policy?Planning to in 2008
32. To what extent does your (proxy) voting policy direct action on ESG issues? For each issue, please indicate the extent of direction.
EnvironmentalNo Answer
SocialNo Answer
GovernanceNo Answer
33. Does your (proxy) voting policy apply to all voting regions (where possible)?No Answer
34. Please indicate how your (proxy) voting policy can be obtained (a URL would be sufficient):No Answer
35. Do you ensure that voting is done in accordance with your (proxy) voting policy?No Answer
36. What percentage of total votes cast were against management? (in %)
37. What percentage of shareholder resolutions relating to environmental, social or governance issues was supported? (in %)
Environmental0
Social0
Governance0
38. Do you conduct (proxy) voting on behalf of your clients?Yes - We can execute client-specific (proxy) voting policies
39. How many shareholder resolutions related to RI/ESG issues did you participate in during 2007?
As lead filer
As co-filer
Planning to be lead filer in 2008
Planning to be co-filer in 2008
40. How were portfolio companies engaged with in 2007? Please check all that apply.Internal staff engaged portfolio companies directly
41. Do you systematically bring RI/ESG issue-related engagement opportunities to your clients?Planning to in 2008
43. How many portfolio companies did you engage directly/were engaged on your behalf on ESG issues in 2007?
 
Extensive engagement
Moderate engagement
Basic engagement
Environmental000
Social000
Governance000
44. What RI/ESG-related issues were addressed in your shareowner engagement initiatives? Please check all that apply.Other (please specify): 'production landmines/clusterbombs'
45. How were RI/ESG issue-related engagement targets and topics identified? Please check all that apply.Client directive
46. Do you set RI/ESG issue-related engagement objectives and attempt to evaluate success?To a moderate extent
47. Have you sought evidence relating to the effectiveness of your active ownership strategy? Please check all that apply.(Written) commitment to improve a particular ESG issue
48. What was your most significant achievement in 2007 in relation to your implementation of Principle 2?Enter text response here.
49. What was your biggest barrier in 2007 with relation to your implementation of Principle 2?Enter text response here.
50. Please add any overall comments and clarifications related to Principle 2 here.Enter text response here.
Principle 3
51. Have you asked that investee companies (or other investment entities) produce standardized reporting on their RI/ESG issue policies, practices or performance (within annual financial reports or other formats)?To a large extent
52. What format of standardized reporting on RI/ESG issue policies, practices or performance have you requested?Global Reporting Initiative (GRI),Carbon Disclosure Project (CDP),Other (please specify): 'own selectioncriteria for SRI funds'
53. Have you provided feedback to investee companies (or other investment entities) on their reporting on RI/ESG issues?To a moderate extent
54. Have you sought information from companies regarding their adoption of/adherence to norms, standards, codes of conduct or international initiatives related to RI/ESG issues?
AdoptionTo a large extent
AdherenceTo a large extent
55. Which norms, standards, codes of conduct or international initiatives related to RI/ESG issues have you sought information about from companies, with regard to their adoption of/adherence to?UN Global Compact,International Labour Organization standards,Universal Declaration of Human Rights
56. What was your most significant achievement in 2007 in relation to your implementation of Principle 3?We published csr scores of 2700 companies on our website https://www.kbcam.be/IPA/D9e01/~E/~KBCAM/~BZJ0UW5/-BZIUS4B/BZIUSAV/~-BZJ0XI9
57. What was your biggest barrier in 2007 with relation to your implementation of Principle 3?Enter text response here.
58. Please add any overall comments and clarifications related to Principle 3 here.Enter text response here.
Principle 4
59. Are you considering RI/ESG requirements when searching for and selecting the following?
External investment managerNot applicable
Investment consultantYes
Proxy votingYes
Engagement overlayYes
Investment researchYes
Internal operations (for example, purchasing, travel, office space etc.)Not applicable
60. Have you linked the following to performance on RI/ESG issues?
Investment monitoringNot applicable
Incentive structure (internal investments)Not applicable
Incentive structure (external investments)Not applicable
Contractual relationships with external investment managersNot applicable
61. Are the default pension funds or retirement plans offered to your employees also signatories to the PRI?Yes
62. To what extent do you encourage your service providers to become PRI signatories?Not at all
63. To what extent do you encourage your clients to become PRI signatories?Not at all
64. To what extent do you encourage peer organisations to become PRI signatories?To a moderate extent
65. Do you have evidence that you have played a role in the improved integration of RI/ESG issues by external investment managers?No Answer
66. Does your broker evaluation process include an ESG component or do you have a budget to pay cash for ESG broker research?Yes
67. Have you revisited any relationships with service providers in light of RI/ESG issue-related capabilities?Yes
68. Have you engaged in dialogue, lobbying or initiatives pertaining to government policy and/or industry regulations (for example, stock exchanges, accounting standards) related to RI/ESG issues in 2007?To a moderate extent
69. What was your most significant achievement in 2007 in relation to your implementation of Principle 4?participation consultation encouters organised by the belgian authorities to set up the framework for the national actionplan on CSR.
70. What was your biggest barrier in 2007 with relation to your implementation of Principle 4?Enter text response here.
71. Please add any overall comments and clarifications related to Principle 4 here.Enter text response here.
Principle 5
72. Did you use the PRI Engagement Clearinghouse in 2007?No
73. Did your use of the clearinghouse result in subsequent action or collaboration with other signatories?No Answer
74. Please elaborate on how the PRI Engagement Clearinghouse could be made more useful:Enter text response here.
75. To what extent do you participate in the following RI/ESG issue-related collaborative engagement initiatives and/or industry associations? For those not listed, please use the "other" field:Carbon Disclosure Project,Other (please specify): ''
77. What was your most significant achievement in 2007 in relation to your implementation of Principle 5?Enter text response here.
78. What was your biggest barrier in 2007 with relation to your implementation of Principle 5?Enter text response here.
79. Please add any overall comments and clarifications related to Principle 5 here.Enter text response here.
Principle 6
80. Have you disclosed how RI/ESG issues are integrated into your investment processes?Yes - to clients or beneficiaries and the public
81. Please indicated how this disclosure of how RI/ESG issues are integrated into your investment processes can be obtained (a URL would be sufficient):https://www.kbcam.be/IPA/D9e01/~E/~KBCAM/~BZIUS4X/-BZIUS4B/BZIUSAV https://multimediafiles.kbcgroup.eu/ng/published/KBCCOM/PDF/COM_MAR_Group_Investment_Policy_EN_0900dfde802dfa5d.pdf
82. To what extent do you disclose your annual (proxy) voting record?Planning to in 2008
83. Please indicated how your (proxy) voting record can be obtained (a URL would be sufficient):
84. Do you systematically report (privately and/or publicly) on your RI/ESG issue-related engagement activities, results and progress?Planning to in 2008
85. Please indicate how your reporting on RI/ESG issue-related engagement activities, results and progress can be obtained (if it is publicly available, a URL would be sufficient):
86. Did you communicate on RI/ESG issues and the PRI to beneficiaries or plan participants in 2007?
87. Please indicate how your communication on RI/ESG issues and the PRI to beneficiaries or plan participants can be obtained (if it is publicly available, a URL would be sufficient):
88. Are you undertaking any additional efforts to raise awareness of the PRI and RI/ESG issues amongst stakeholders?To a moderate extent
89. What evidence do you have of the impact on external investment manager practices? Please check those that apply.No Answer
90. Have you sought to determine what impact your overall RI/ESG issue-related efforts (voting and engagement, investment decision making, disclosure, etc.) have had on corporate behavior or performance?Not at all
91. Have you sought to determine what impact your RI/ESG issue-related approach has had on the performance of your portfolio?To a large extent
92. Have you sought to determine what impact your RI/ESG issue-related efforts, requests and guidance have had on the consideration of RI/ESG issues by your external service providers excluding external investment managers (for example: research providers, consultants, etc.)?Not at all
93. Do you report on progress and/or achievements relating to the PRI or RI, and how would you like to publish your response to this assessment?Please automatically publish our responses to the reporting and assessment tool in full on the PRI website
94. What was your most significant achievement in 2007 in relation to your implementation of Principle 6?CSR report KBC group was awarded as second best CCSR report in Belgium
95. What was your biggest barrier in 2007 with relation to your implementation of Principle 6?Enter text response here.
96. Please add any overall comments and clarifications related to Principle 6 here.Enter text response here.
Emerging Markets
97. To what extent have you actively thought about how to integrate RI/ESG issues within investment decision making and ownership practices with regards to emerging markets investments?To a moderate extent
98. Please describe your activities with regards to integrating RI/ESG issues within investment decision making and ownership practices with regards to emerging markets investments.
99. To what extent do you believe the integration of ESG issues in emerging markets is as relevant as the integration of ESG issues in other markets?No Answer
100. To what extent did you employ the following approaches in your 2007 active ownership strategy in emerging markets?
(Proxy) votingNo Answer
Direct engagement conducted privatelyNo Answer
Direct engagement conducted publiclyNo Answer
Collaborative engagementNo Answer
Filing shareholder resolutionsNo Answer
Co-filing shareholder resolutionsNo Answer
Other (Please specify):No Answer
101. To what extent have you developed a comprehensive RI/ESG engagement capability regarding business activities in emerging markets?No Answer
102. Please list the three most often addressed RI/ESG-related issues in your shareholder engagement initiatives in emerging markets?
1.
2.
3.
103. Have you sought information from companies regarding their adoption of/adherence to norms, standards, codes of conduct or international initiatives related to RI/ESG issues in emerging markets?
AdoptionNo Answer
AdherenceNo Answer
104. Do you take RI/ESG considerations into account when selecting and approving emerging markets external investment managers?No Answer
105. Do your consultants factor RI/ESG issues into their short listing of emerging markets external investment managers?No Answer
106. Do you have evidence that you have played a role in the improved integration of RI/ESG issues by external investment managers investing in emerging markets?No Answer
107. To what extent have you worked together with other investors to improve the effectiveness of implementing the PRI in emerging markets?No Answer
108. Are you undertaking any additional efforts to raise awareness of RI/ESG issues in emerging markets?No Answer
109. Have you sought to determine what impact your RI/ESG issue-related efforts (voting and engagement, investment decision making, disclosure, etc.) have had on corporate behaviour or performance in emerging markets?No Answer
110. Please add any overall comments and clarifications related to the PRI in emerging markets here.
111. What is your top PRI-related goal/priority for emerging markets in 2008?raising awareness in central european branches concerning controversial weapons and SRI
Closing Comments
112. Why did your organisation join the PRI?KBC AM is major asset manager with important SRI department, managing 6 bln in SRI funds, and 17 bln in funds and mandates
113. Please describe the benefits you have enjoyed as a result of signing the PRI:none so far
114. To what extent do you believe the PRI has succeeded in changing investor behaviour and/or raising awareness or capacity on RI/ESG issues? Do you have any examples you could share?PRI has become the universal stabndard for the investment industry
115. What are the top three activities the PRI Secretariat could undertake to enhance and encourage further implementation of the PRI by current and prospective signatories?
1.information transfer, seminars
2.training sessions
3.platform
116. What are your top three PRI-related goals/priorities for 2008?
1.voting and engagement policy focussing on ESG issues
2.full disclosure of our voting and engagement activities in our CSR report
3.csr screening in emerging markets
117. Please rank the six principles from most difficult to implement to least difficult to implement:
Most difficult
1
Principle 4
2Principle 5
3Principle 2
4Principle 1
5Principle 3
Least difficult
6
Principle 6