Sustainability governance

The Board of Directors sets KBC’s sustainability strategy and oversees its implementation by the Executive Committee. This strategy covers ESG‑related themes in a broad sense, including climate and other environmental topics, as well as gender diversity, human rights, ethical behaviour and integrity. Twice a year, the Board evaluates and discusses the implementation and progress of the sustainability strategy using the KBC Sustainability Dashboard, and important changes to sustainability policies and sustainability‑related reporting are discussed at board level when required.

The KBC Board of Directors and the Risk and Compliance Committee closely monitor ESG-related risks, including climate, environmental, cyber, compliance, and conduct risks. These are defined as top risks by the Executive Committee. For more details, refer to the KBC Group Risk Report.

The Audit Committee ensures the Executive Committee establishes effective internal controls and monitors KBC's sustainability reporting process.

The Executive Committee is responsible for the operational management of KBC’s sustainability strategy, including the Group’s ESG‑related strategies and policies, and monitors the implementation of this strategy across the Group.

The Internal Sustainability Board (ISB) is KBC's main forum for ESG-related discussions. Chaired by the Group CEO and vice-chaired by the Group CFO, it includes executive and top-management representatives from all business units, core countries, and group services. The ISB collaborates closely with the Group Corporate Sustainability department and the Senior General Manager Group Sustainability, who is also a member.

The Steering Committee Sustainability is chaired by the Senior General Manager of Group Corporate Sustainability and brings together the Sustainability General Managers of all home countries and representatives of relevant head‑office departments, including risk functions. The committee discusses proposals to be submitted for decision by the ISB and supports the implementation of those decisions.

The Data and Metrics Steering Committee, co-chaired by the Group CFO and the Senior General Manager of Group Finance, has specific management responsibility for challenges related to sustainability-related data collection and reporting.

The Corporate Sustainability Reporting Directive (CSRD) Steering Committee oversees KBC’s CSRD conceptualisation and implementation. The Steering Committee is only responsible for reporting topics. Strategic decisions remain the responsibility of the relevant existing decision-making bodies and committees.

The Senior General Manager Group Corporate Sustainability leads the Group Corporate Sustainability Department, reporting directly to the Group CEO and regularly meeting with the Chairman of the Board of Directors. The department oversees ESG-related issues, develops sustainability strategies and policies, and implements them across the Group.

The organisation of the local sustainability teams varies from country to country. However, they are generally organised as country sustainability departments and committees. Local top management steers these committees. They provide support for the local integration of the sustainability strategy as well as the organisation and communication of local sustainability initiatives.

Another external board, the RI Advisory Board, acts as an independent body overseeing the screening of the responsible character of the Responsible Investing funds offered by KBC Asset Management.