Case study: How KBC creates economic value for its stakeholders
KBC is an integrated bank-insurance group, catering mainly for retail, private banking, small and medium-sized enterprises (SMEs) and mid-cap clients, operating in its core markets of Belgium, Bulgaria, the Czech Republic, Hungary, Ireland and Slovakia. KBC creates financial value for all its stakeholders, by generating and distributing economic value. Tweet This!
This case study is based on the 2021 Sustainability Report by KBC, prepared in accordance with the GRI Standards, that can be found at this link. Through all case studies we aim to demonstrate what CSR/ 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.
KBC is committed to fulfilling its role in society and responding to societal needs and the expectations of its stakeholders, creating sustainable value for all. In order to create economic value for its stakeholders KBC took action to:
- create economic value for employees
- create economic value for shareholders
- create economic value for clients
- create economic value for the community
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With this case study you will see:
- Which are the most important impacts (material issues) KBC has identified;
- How KBC proceeded with stakeholder engagement, and
- What actions were taken by KBC to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2021 Sustainability Report KBC identified a range of material issues, such as long-term resilience of its business model, ethical business conduct and responsible behaviour, sustainable and responsible lending, insurance and advisory service offering. Among these, creating economic value for its stakeholders stands out as a key material issue for KBC.
Stakeholder engagement in accordance with the GRI Standards
The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:
Stakeholders must be consulted in the process s of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.
Key stakeholder groups KBC engages with:
| Stakeholder Group | Method of engagement |
| Clients
| · Annual client satisfaction: Client net promotor score (NPS) ranking · Complaints management · Regular customer panels and customer consultations · Local engagement by branch network and relationship managers · Collaboration with clients in their transition to becoming a low-carbon business · Webinars on ESG-related topics |
| Employees
| · Employee surveys (e.g. Shape Your Future survey) · Regular consultations with the occupational health and safety committees, health, safety and security advisers and employee representatives · Annual meeting of the European Works Council · Regular evaluation of all staff StiPPLE, a digital learning and talent platform for employees |
| Investors and core shareholders
| · Investor days · Regular roadshows for investors and analysts and dedicated virtual ESG meetings · Annual general meeting · Review by credit rating agencies · Sustainability assessments such as S&P Global Corporate Sustainability Assessment, CDP, Sustainalytics, FTSE4Good, BankWijzer Belgium and Ethibel |
| Suppliers
| · CSR questionnaire as an integral part of supplier assessments · Supporting suppliers willing to make the adjustments needed to comply with the Code of Conduct for Suppliers · Webinars on ESG-related topics · Vendor meetings on all levels of the hierarchy · Proofs of Concept during which KBC mutually learns about the potential value creation · Transparent, simultaneous communications and approaches in competitive sourcing cases |
| Public authorities
| · Membership of banking and insurance federations · Membership of other national and international representative bodies to establish and maintain relationships with political actors and achieve closer follow-up of regulatory initiatives impacting the financial sector (e.g., public consultations) · Active participation at networking events |
| NGOs and the broader community
| · Regular (one-on-one) meetings with NGOs · Membership of sustainability network organisations · Membership of local works councils · Research papers and media analysis |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics KBC engaged with its stakeholders through an online survey and in-depth interviews.
What actions were taken by KBC to create economic value for its stakeholders?
In its 2021 Sustainability Report KBC reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2021, KBC paid m EUR 2 457 in staff expenses.
- Creating economic value for shareholders
- In 2021, KBC paid m EUR 2 614 to shareholders (gross dividend per share: EUR 8.6).
- Creating economic value for clients
- In 2021, KBC paid m EUR 1 869 in interest paid to clients (interest expense).
- Creating economic value for the community
- In 2021, KBC paid m EUR 13.0 in community investment.
Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?
The GRI Standard addressed in this case is: Disclosure 201-1 Direct economic value generated and distributed
Disclosure 201-1 Direct economic value generated and distributed corresponds to:
- Sustainable Development Goal (SDG) 8: Decent Work and Economic Growth
- Targets: 8.1, 8.2
- Sustainable Development Goal (SDG) 9: Industry, Innovation and Infrastructure
- Targets: 9.1, 9.4, 9.5
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References:
This case study is based on published information by KBC, 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:
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