KBC Groupe : Sustainability Presentation

An update on ESG

KBC Group Corporate Sustainability

Filip Ferrante, General Manager Group Corporate Sustainability

Interactive digital publication available on www.kbc.com

Defining report content:

• Prepared in accordance with the GRI Standards: Core

option

• Two yearly materiality assessment to identify material topics, complemented with maturity assessment

- The material topics define the content of the report, and are discussed throughout the report

 Includes relevant disclosure topics and associates metrics under the SASB Commercial Banksindustry standard

• Describes our contribution to adress the UN Sustainable
  Development Goals
• Includes reporting on our ongoing climate change actions in line with our commitment to the Collective Commitment to Climate Actionand structured according to the four pillars of the TCFD Framework

GRI/SASB

Content Index

Stakeholder engagement and materiality assessment

• Stakeholder identification and engagement
• Materiality assessment:
• • Setting the scope: stakeholder mapping
  • Selecting relevant topics considering relevant sustainability frameworks and benchmarks
  • Validating topics and determining importance through surveys and in-depth interviews
  • Concluding on materiality: plotting high-impact, medium to high-impact and medium-impact topics on the materiality matrix
  • Determining maturity of the material topics though an internal self-assessment identifying urgent topics
• Determining relevance for our stakeholders (= boundary) and mapping material topics to our corporate strategy, high-impact areas (SDGs) and relevant GRI/SASB standards

During 2021 and for the coming years, we will set the priorities of our sustainability strategy on the basis of these results.

KBC sustainability strategy

• To avoid or limit the negative impactof our products and services as much as possible
• To provide financial solutions and business opportunities that have a positive impactin a number of pre-determined focus domains
• We focus especially on responsible behaviouras the foundation for sustainability at KBC.
• Financial resilience and strict risk management

Our commitment to climate action- through our dedicated Sustainable Finance Progamme - is both on limiting our adverse impact and increasing our positive impact:

• Increasing the opportunities of and exposure to low-carbon clients and activities;
• Reducing the risks of and exposure to high-carbon clients and activities; and
• Engaging, working with and supporting our clients in their transition towards climate resilience

Our climate strategy encompasses the 'double materiality' approach, comprising our commitment on the one hand to manage the direct and indirect impact of our company on the climate ('environmental and social materiality'), and to manage the financial impact of climate change on our company ('financial materiality') on the other.