KBC Bank Ireland Report to Society

MAKING A POSITIVE DIFFERENCE

Message from our CEO, Wim Verbraeken 1KBC Bank Ireland’s Strategy 2Sustainability @ KBC 3Governance 4Our Commitment to Stakeholders 5Making a Positive impact on Society 7Financial Literacy 8Entrepreneurship 9Environmental Responsibility 10Health and Wellbeing 11Our Partners 12Conclusion 13

Sustainability @KBC

About this ReportThis is a ‘non-financial’ report which presents our sustainability values and governance and demonstrates the link between our strategy and our commitment to addressing sustainable development challenges.

Our sustainability vision is part of our business model and is across the spirit of everything we do as ‘The Bank of You’. It provides an update on progress we have made in meeting the targets set within our Sustainability Framework.

Contents

Message from our CEOAs the ‘The Bank of You’ our customers are at the core of everything we do as we continue to deliver a new way of banking for Irish consumers. Progressing on this journey we appreciate that our corporate strategy has the potential to make a real and lasting impact to society. We want to support our colleagues, customers and communities so as to make that positive and lasting impact.

Across the wider KBC Group, Sustainability is integrated into our overall corporate strategy and day-to-day business activities. Our Corporate Strategy is based on four pillars:

• We place our customers at the centre of everything we do.

• We look to offer our customers a unique bank-insurance experience.

• We focus on our Group’s long-term development and aim to achieve sustainable and profitable growth.

• We take our responsibility towards society and local economies very seriously.

Our vision on sustainability places our society at its centre and is based on a long term view to remaining sustainable and competitive as a business.

The Sustainability Framework, built through close collaboration with our colleagues across the KBC Group, recognises that as a bank serving retail consumers and micro-SMEs, we have an important role to play in society in addressing sustainable development challenges. This means offering solutions that make sense today, and designing products for how we want to live tomorrow. It also means supporting charities and educational initiatives designed to improve the physical, mental and financial well-being of our customers and our communities. We have identified a number of high-impact areas where we believe KBC can contribute most positively as a bank and defined four pillars of focus: Environmental Responsibility; Financial Literacy; Entrepreneurship; and Health & Wellbeing.

I am proud of the many achievements of our employees and customers who together have been instrumental in ensuring that our Sustainability programme has made an impact.

This Report to Society highlights the role we play in our communities at large. We hope it gives you an insight into how we are making a contribution to society and how we are investing in a sustainable future.

Wim VerbraekenOctober 2018

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At KBC Bank Ireland we are on a mission to shake up the business of banking. As a provider of financial services, we do things differently. Our digitally led, customer-centric approach offers a new way of banking to Irish consumers by providing innovative, financial products and services designed for how we actually live, work and do business. We are challenging the status quo and putting our customers at the heart of everything we do.

We have been growing our capability in our dedicated ‘digital first’ Innovation Hub here in Ireland. The Innovation Hub allows us to develop and bring innovation to the Irish market quicker than our competitors. Along with digital improvements made for our customers’ needs, we have also extended our reach and accessibility through our contact centre that operates on a 24/7 basis and our hub network with extended opening hours.

With 16 local hubs located across Dublin, Cork, Limerick, Kildare, Galway, Waterford, and Wicklow, our teams of mobile advisors, our contact centre, our online banking platform and one of the best mobile banking apps in Europe, our customers can connect with us from anywhere and anytime online, or in real life.

Ireland is a core market within the KBC Group along with Belgium, the Czech Republic, Slovakia, Hungary and Bulgaria. Being a core market means that KBC Bank Ireland is part of a wider group working together to create a positive impact on society. We all work to the same Sustainability Framework, share the same values and localise our initiatives. This means that our Sustainability vision is baked into our business model, drives our values and resonates across all we do.

KBC Bank Ireland’s Strategy

We are one of just 29 Irish companies to have achieved the BITC Mark. This is thanks to each of our 1,200 employees who

live our sustainability programme every day.

270,000 customers

16 Hubs nationwide

24/7 customer service

Digital First BankingApple Pay, Google Pay,

Fit Bit Pay and Garmin Pay Open a Current Account

in 5 minutes

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Entrepreneurship

Sustainability at KBCTo us, corporate sustainability means the ability to live up to the expectations of all our stakeholders and meet our obligations, not just today but also in the future. Our sustainability strategy has three cornerstones:

Our Sustainability Framework recognises that business has an important role to play in society and in addressing the sustainable development challenges. Put simply, we want to increase our positive impact on society in areas where we can make a positive difference through our everyday activities.

We have identified a number of high-impact areas where we believe we can contribute most positively.

LIMITING OUR ADVERSE

IMPACT ON SOCIETY

INCREASING OUR POSITIVE

IMPACT ON SOCIETY

+ENCOURAGING RESPONSIBLE

BEHAVIOUR ON THE PART OF ALL

EMPLOYEES

Environmental Responsibility

We have set goals to reflect our values and beliefs about sustainability. By fostering an internal culture of innovation through collaboration, we have developed new product solutions and community initiatives close to the hearts of our customers. We actively engage with our colleagues in the 16 hubs, our partners and local communities to deliver our sustainability promise. We have built partnerships with Business in the Community Ireland, Enactus Ireland, and Junior Achievement Ireland along with a charity partnership with the Alzheimer Society of Ireland.

This means that each of our 1,200 employees embraces our role as corporate citizens to create a sustainable future for all.

Financial Literacy

Health and Wellbeing

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Wim Verbraeken

Wim Verbraeken is Chief Executive of KBC Bank

Ireland. Wim has been with the KBC Group for over 25 years, where he held a number of international assignments and senior management roles. Wim joined KBC Bank Ireland in July 2013. Passionate about driving the Sustainability agenda at KBC, Wim is chair of our Sustainability Steering Committee and represents the Irish programme at Executive Committee and Board level.

Leading the Sustainability Programme @ KBC Bank Ireland

Aidan Power

Aidan Power joined KBC Bank Ireland as Director of Marketing in

2012 and has been growing the challenger banking brand - ‘The Bank of You’ - ever since. Aidan is an experienced Director of Marketing, Communications, Corporate Affairs and CSR from both the Financial Services and FMCG sector.  He is also a Board Director with Enactus Ireland – a social entrepreneurship Not for Profit.

Eamonn Tuffy

Eamonn Tuffy is Director of Operations at KBC Bank Ireland since

2013. Eamonn has over twenty years of experience in the banking sector. KBC is committed to its customers and this drives Eamonn and his team to deliver a rewarding experience to our customers. In addition Eamonn is focused on reducing our carbon footprint as part of our facilities management and environmental programme.

Maeve MacEnri

Maeve MacEnri is Director of Human Resources

at KBC Bank Ireland since September 2017. Maeve has twenty years of HR experience across market leading multinational companies with expertise in driving transformation and change. As Ireland’s digital-first bank, KBC is building a sustainable bank for the future, with a focus on attracting and retaining the best people to make KBC a great place to work.

Edelle McMonagle

Edelle McMonagle is Head of Sustainability, Content

and Communications with KBC Bank Ireland. Edelle has a broad portfolio of activities with responsibility for PR, internal communications, and sustainability. Edelle leads the Sustainability team on a day to day basis, energising collaboration amongst employees, partners and our colleagues in KBC Group.

GovernanceCEO of KBC Bank Ireland, Wim Verbraeken, is a member of the KBC Group Internal Sustainability Board (ISB), which is chaired by the KBC Group CEO, Johan Thijs. In the ISB the Group Sustainability strategy is articulated and communicated. Working with the Corporate Sustainability Division of KBC Group, the KBC Bank Ireland Sustainability team is responsible for developing and implementing the strategy in Ireland. The Team reports progress to KBC Group and to the KBCI Steering Committee.

The local Steering Committee has responsibility for Sustainability at KBC Bank Ireland, providing leadership and demonstrating commitment to Sustainability across the organisation. The members of the Steering Committee lead, inspire and support the development of the strategy. However, they are not at it alone. The Bank’s sustainability strategy is anchored in the initiatives and programmes of a variety of groups, employees and committees bank-wide.

Sustainability receives the highest level of attention at Board level, Executive Management level, Group level and Country level.

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Our Commitment to StakeholdersEmployeesOur employees are encouraged to share their ideas, express their opinions, take initiative and assume responsibility for realising their potential. Our Sustainability programme is built on the commitment of our employees who share our vision for better, brighter communities. Our employees have been involved contributing thousands of hours of volunteer work across all our programmes.

Although KBC Group is made up of many businesses across Europe, all our employees belong to one big family called ‘Team Blue’. We have in common our sustainability framework, values and cornerstones. As Team Blue, our employees develop ideas as a team, share ideas across countries and build our positive impact together.

We are the only bank in Ireland that offers fully comprehensive health insurance for its employees as well as their families. We also support employees with pension and income protection, personalised wellness plans, subsidised day care, study support, flexible working hours, plus two days of paid volunteer leave.

Fully comprehensive health insurance for employees

Personalised wellness plans

Over 9,000 hours annually of training completed by our staff

Two days of paid volunteer leave

Flexible working hours

Subsidised day care

Study support

Pension and income protection

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n develop grow

&

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Suppliers KBC’s suppliers are required to comply with the principles outlined in our Sustainability Code of Conduct for Suppliers, which forms part of our overall corporate sustainability and responsibility strategy.

The Code of Conduct is in line with the UN Global Compact Principles and applies to all KBC Group entities and to all KBC’s procurement and outsourcing activities. We have adopted a specific corporate social responsibility policy towards suppliers and contractors.

This policy declaration is based on the ten universal principles of the UN Global Compact. KBC applies provisions in relation to Human Rights Requirements, Employee Policy, Anti-Corruption and Environmental as part of this policy.

Our Commitment to StakeholdersCustomers

Our brand is centred around the concept of “The Bank of You”, which puts customers at the heart of our business. The Bank of You is all about celebrating the individuality and diversity of our customers. Our vision is to offer a best in class, innovative and truly customer-centric experience that inspires pride in our employees and loyalty from our customers.

We have a dedicated customer board and customer centricity champions across the business. This ensures that we are constantly challenged to deliver the best experience and outcome for our customers.

We engage with all new customers and seek feedback on their experience of opening a new account with us. We also engage annually with a cross section of customers to capture their opinion and feedback on being a KBC customer.

Over the last 12 months, we listened to over 15,000 consumers who told us what was important to them – an easier banking experience, with the freedom to bank anytime, anywhere and digital technology makes that possible. As a result we delivered solutions that matter to our customers, including easier account opening, digital wallets and products focussed on value, all supported by 24/7 customer service.

We collaborate with digital partners to design solutions, so customers do not have to wait days for a physical debit card before their account can be used. We were the first bank to offer Apple Pay, Android Pay and FitBit Pay. We opened a new retail hub in Blanchardstown Shopping Centre, the first hub to open 7 days a week.

We are committed to being a challenger bank and will continue to engage our customers so we can deliver the best products and services to suit their needs.

Listened over 15,000 customers

800 Mystery Shops conducted

across Hubs, Contact Centre

and Online

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We’re on a mission to create positive, long term impact for our employees, our

customers and society. This promise is led by four important pillars:

MAKING A POSITIVE IMPACT

ON SOCIETY

FINANCIAL LITERACY

HEALTH & WELLBEING

ENTREPRENEURSHIP

ENVIRONMENTAL RESPONSIBILITY

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FINANCIAL LITERACY

THE YOUTH SEGMENTWith Junior Achievement Ireland, we support Make Maths Matter, a programme that supports financial literacy and STEM education in primary schools.

Through the Business in the Community Skills@Work mentoring programme, we run workshops that teach secondary school students practical skills for employment

CUSTOMERS STARTING OUT Our Home Experience Events attracted over 1,000 people this year from around the country and expert advisors were on hand to take attendees through the step-by-step process of buying their home; from demystifying the mortgage process to finding the right property and closing a sale.

GROWING TOWARDS RETIREMENTWe hosted 16 Investment Evenings nationwide. These educational seminars empower customers with the knowledge to make the best of their money.

THE KBC’S OF BANKINGOur online portal the KBC’s of Banking, promotes understanding of financial management, financial products and planning with easy to understand educational content. There has been over 5,000 visitors to the site since the launch.

In Ireland today, just one in four adults describe themselves as financially savvy. We are focused on increasing financial awareness through continued support of financial literacy through education at all stages of life.

Skills@Work mentoring programme Make Maths Matter

KBC Home Series Event

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ENACTUS – GET READY TO INNOVATETo support and inspire the next generation of entrepreneurs, we have welcomed 14 paid internships through Enactus Ireland—a global network of college students and business leaders working together to make a difference through social entrepreneurship.

LAUNCH OF MICRO-SME BANKINGTo demonstrate our commitment to supporting start-ups, we have launched Micro-SME banking. This service is exclusively for small to medium professional services providing a personal banking advisor, who will tailor solutions to suit the needs of their business.

IRISH EARLY CAREER AWARDSWe are a lead partner with the Irish Early Career Awards. We have launched a new bursary with the winning entrepreneur receiving €1,500. It’s part of our commitment to fostering young careers, helping them to thrive and realise their potential in the workplace.

INSPIRATION DAYIn partnership with the Dublin Tech Summit we hosted the KBC Inspiration Day attended by over 150 entrepreneurs. Panellists from a diverse range of businesses discussed the changing face of their industries.

Divergent thinking will be key in solving the challenges of tomorrow. Entrepreneurship and the creation of enterprises designed specifically to address social problems will become more important as Ireland’s population grows. We have put in place programmes to support entrepreneurs.

ENTREPRENEURSHIP

Irish Early Career Awards

The winning Enactus interns

KBC Inspiration Day

Micro-SME Banking

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KBC Green Team

CARBON FOOTPRINT We have reduced our energy consumption through a dedicated LED program and aircon programme that are energy efficient.

GREEN TEAMOur dedicated Green Team drive our sustainable business goals, initiatives and communications through awareness weeks, campaigns and competitions.

ISO14001We have achieved the ISO14001 standard for environmental management this year and we are externally recognised for our efforts in protecting and enhancing the environment.

WASTEOur waste segregation process has helped us to achieve 130 tons of recycled waste.

RAINWATER HARVESTINGWe installed a rain harvesting unit in KBC head office which processes and collects cold water for general use. As staff levels have increased, our usage of city water consumption has remained consistent with 2015 levels.

As innovators in banking, our focus has been on providing easy to use and accessible products. This means a digital-first approach that goes hand-in-hand with greener, more sustainable business. But more than this we have a long term green strategy which is embedded in the hearts and minds of KBC employees.

ENVIRONMENTAL RESPONSIBILITY

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SEECHANGE KBC are proud to support SeeChange. We are a recognised Green Ribbon Workplace which promotes open conversation around mental health and challenges stigma in the workplace.

EMPLOYEE WELLBEING PROGRAMME Employee wellbeing benefits are part of everyday life at KBC, from personalised wellness plans, study support and flexible working hours.

ACTIVE@WORK AWARD We received the Gold level Active@Work Award. This is an Irish Heart Foundation led programme which encourages workplaces to support and motivate employees to get more active.

SPORTS DEVICES AND CONTACTLESS PAYMENTSWe continue to make health and wellbeing a focus through innovation with our partnerships. We are the only bank to offer Irish customers payments through their fitness devices, including Fitbit Pay and Garmin Pay.

WELLFESTBy partnering with Wellfest we played an active role in bringing wellness to our customers. The festival inspires and educates people about nutrition, fitness and mental health and features a host of experts in these areas. We also offer the online ‘WellGood’ programme to help people fit wellness into their everyday lives and the Wellfest Summer Tour brings Wellfest to our local hubs.

This year we have made health and well-being our focus. The reason is simple: mental well-being is as important as physical health. So finding ways to improve total well-being is more than a socially responsible sustainability initiative—it’s a no brainer.

HEALTH & WELLBEING

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Payments through fitness devices CEO, Wim Verbraeken receiving the Green Ribbon

KBC Wellfest Festival

We partner with Business in the Community Ireland (BITCI) to deliver their skills@work programme to local secondary schools. Through this programme we give students a unique insight into the world of work and support them in developing their employability skills.

KBC Ireland has achieved the Business Working Responsibly Mark and as a result we are proud members of the BITCI CEO Leaders Group. The Leaders’ Group on Sustainability is a coalition of Ireland’s leading organisations that is striving to improve the sustainability of the Irish business sector through sharing best practice and creating new ways of doing business.

Our PartnersThrough our partnership with Junior Achievement we are promoting financial and numerical literacy with primary school children through their Make Maths Matter programme. Make Maths Matter is a series of modules promoting math skills through games and showcasing the relevance of maths in everyday life.

We have partnered with the Alzheimer Society of Ireland as our charity partner. Throughout the year we organised a range of fundraising and volunteering events. Since our partnership began, we have raised over €200,000.

KBC is actively involved in Enactus Ireland. We mentor Enactus students as they develop their entrepreneurial concepts through their university programme. We host and judge a “pitch perfect” event where we award the winning project seed money to fund their project and also provide paid internships for students to gain experience in the workplace.

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We’ve really just started!Across KBC Group, we are focused on creating a positive, long term impact for our employees, our customers and society at large.

Our collective mission is to empower individuals to make the personal changes necessary to create a positive and sustainable impact in the community. Through our colleagues’ passions and by adopting a grassroots approach we are ensuring that we truly “walk the talk”.

Through innovative product solutions, our green agenda and social initiatives designed to support our customers and the communities we live in, we have put You at the heart of our strategy.

Sustainability @KBC

For more information about KBC Bank Ireland, read our Annual Report here.

13KBC/2998 11.18

October 2018