Case study: How Belfius works with its clients and customers to encourage sustainable practices

Belfius, a Belgian banking and insurance group, is entirely owned by the Belgian federal state through the Federal Holding and Investment Company (FHIC). It holds a license as a credit institution under Belgian Banking Law. Belfius’ business model caters to all segments of the Belgian economy and society, including public and social sector entities, businesses and entrepreneurs, as well as individuals, encompassing both the most robust and the most vulnerable. As of 2023, Belfius serves nearly 30% of Belgium’s population, offering banking services to about 3.8 million customers. Belfius is a signatory of the Principles for Responsible Banking (PRB) and is, accordingly, working with its clients and customers to encourage sustainable practices and enable sustainable economic activities.  Tweet This!

This case study is based on the 2023 Sustainability Report by Belfius, prepared in relation to its implementation of the PRB, that can be found at this link. Through all case studies we aim to demonstrate what ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.

Which Principles for Responsible Banking have been addressed?

The Principles for Responsible Banking addressed in this case are:

• • • Principle 3: Clients and Customers
      • 3.1 Client engagement
    • Principle 4: Stakeholders
      • 4.1 Stakeholder identification and consultation

Stakeholder identification and consultation

Please describe which stakeholders (or groups/ types of stakeholders) you have identified, consulted, engaged, collaborated or partnered with for the purpose of implementing the Principles and improving your bank’s impacts. This should include a high-level overview of how your bank has identified relevant stakeholders, what issues were addressed/results achieved and how they fed into the action planning process.

Belfius frequently consults and engages with its stakeholders, including customers, employees and unions, civil society, shareholders, sector organizations, prudential supervisors, rating agencies, and sustainability analysts. Belfius identifies stakeholders in two main ways: first, by considering those affected by its operations, and second, by recognizing those who influence its actions. These interactions occur regularly through various channels, tailored to the nature of Belfius’ relationship with each stakeholder. This dialogue helps Belfius understand stakeholders’ expectations regarding its environmental and social impact and informs them about its sustainability strategy, objectives, and risk management.

In 2017, Belfius conducted its first materiality analysis, which guided the development of sustainability policies and the integration of ESG into Belfius’ Inspire 2025 strategy. At the end of 2021, Belfius surveyed a selected group of stakeholders, including customers, suppliers, partners, NGOs, academics, trade unions, and employees, to ensure that its strategy and sustainability commitments addressed issues that stakeholders considered relevant and to identify any additional topics material to Belfius’ stakeholders. The results were published in the 2021 Sustainability Report and reviewed in 2022. In 2023, no new topics were added to Belfius’ sustainability agenda. In 2024, Belfius plans a comprehensive double materiality assessment to comply with the Corporate Sustainability Reporting Directive (CSRD) and European Sustainability Reporting Standards (ESRS).

Belfius collaborates with various sustainability initiatives and sector organizations to enhance positive impacts and mitigate negative ones both at a local and international level. It is a signatory to the UN Principles for Responsible Banking (PRB), the UN Global Compact, the UN Principles for Sustainable Insurance (Belfius Insurance), and the UN Principles for Responsible Investment (Belfius Asset Management). Belfius has also been a member of the Partnership for Carbon Accounting Financials (PCAF) since 2021.

Locally, Belfius is a member of the sustainability community The Shift and the Belgian Institute for Sustainable IT (ISIT-BE), which supports Belgian companies, organisations and individuals in their digital transitions while minimizing the environmental and social footprint of their IT services and usages. Belfius promotes diversity and inclusion as a signatory to the Women in Finance Diversity Charter for a more balanced and fair financial services industry and the Open@Work initiative, which connects people from the LGBTQIA+ community within Belfius.

Additionally, Belfius participates in sustainability-related workgroups, such as those focused on renovation facilitation, organized by Febelfin, its sectoral organization.

How did Belfius work with its clients and customers to encourage sustainable practices and enable sustainable economic activities?

In its 2023 Sustainability Report Belfius reports that it works with its clients and customers to encourage sustainable practices and enable sustainable economic activities as follows:

At Belfius, customers are the centrepiece of its business strategy, and engaging with them responsibly and transparently is crucial for fostering long-term relationships. Belfius’ ongoing efforts to promote sustainable practices among customers are supported by strong policies and a commitment to aiding all segments of Belgian society in transitioning to sustainable economic activities.

The Belfius Customer Acceptance Policy and the Transition Acceleration Policy (TAP) are fundamental to Belfius’ responsible client engagements. Belfius strives to ensure that all business lines and customers adopt and implement sustainable and responsible business practices. Reflecting its values as a responsible bank-insurer, Belfius expects all employees to embrace its principles of responsibility, honesty, and professionalism.

The TAP aims to exclude certain controversial activities, such as tobacco production and gambling, and actively support clients’ transition to a low-carbon and just economy, while adhering to the United Nations Global Compact principles. The policy applies to all processes within the Belfius Group, including client onboarding, loan and leasing origination, and investment offerings, amongst others.

The TAP is regularly reviewed with the aim of expanding its scope over time, addressing emerging societal or market changes promptly, and encompassing voluntary commitments (e.g., Principles for Responsible Banking) and upcoming legislation (e.g., the EU Taxonomy, Corporate Sustainability Due Diligence Directive).

UN Principles for Responsible Banking: Accelerating a positive global transition for people and the planet

With over 300 signatory banks representing almost half of the global banking industry, the Principles for Responsible Banking are the world’s foremost sustainable banking framework. Through these Principles, the banking community takes action to align core strategies, decision-making, lending and investment with the UN Sustainable Development Goals and international agreements such as the Paris Climate Agreement.

FBRH Principles for Responsible Banking (PRB) Assurance:

First class PRB assurance services: The result of solid, hands-on ESG/ Sustainability experience

• • • FBRH is a GRI Certified Training Partner (Global), IEMA Training Centre and a member of CPD.
    • FBRH builds trust. Over 200 reviews from top professionals from around the world demonstrate our ability to build strong, trusting business relationships.
    • FBRH possesses a unique skill set that combines ESG/sustainability certified training, experience in advisory services and report preparation, and ESG/sustainability report assurance.

The combination of all the above empowers FBRH to provide first class Principles for Responsible Banking (PRB) assurance services.

References:

This case study is based on published information by Belfius, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original please revert to the following link:

https://www.belfius.be/about-us/dam/corporate/investors/ratios-en-rapporten/belfius-reports/en/Sustainability-Report-2023.pdf

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