Sustainability

To remain a successful banking group over the long run, efficient, farsighted corporate leadership is a must. For its part, VP Bank is also committed to taking into account the expectations and wishes of its stakeholders. That is the only way sustainable success can be achieved.

Today, true success is no longer conceivable unless consideration is given to the social and environmental impact of doing business. And a true understanding of sustainability by necessity spans the entire spectrum of corporate practices: from purchasing, to operational ecology, all the way through to product policies and investor relations. In addition, sustainable dealings have become a decisive driver of growth and innovation.

Corporate responsibility is progressively becoming a focal point for various interest groups. Even the capital market is attaching greater weight to this factor. As the banking sector is one of the key industries in any economy, it is under the intense scrutiny of analysts and investors, alike. When assessing the value of a company, they are paying more and more attention to responsible corporate behaviour.

The role of VP Bank in society – its “corporate citizenship” – is shaped by a distinct sense of responsibility vis-à-vis clients, employees, investors, shareholders, partners, interest groups and the environment. Its orientation towards long-term economic, environmental and social compatibility is a key element of VP Bank’s successful corporate activities.

VP Bank Group is commited to the principle of sustainable business practices. It is convinced that responsible dealings and commercial success go hand in hand. The entire business model of a bank is based on the trust of its clients. VP Bank’s activities in the area of sustainability help to reinforce and deepen that trust. Responsible dealings are therefore an integral part of its corporate culture, internal work processes and operative banking business.

In order to achieve the goals of commercial success and social integrity, all of VP Bank’s employees have been called upon to act in keeping with the principle of sustainability. The internal “Code of Conduct” lays down the ethical principles of VP Bank and serves as a guideline for proper comportment. And it applies to the entire VP Bank Group. Within the scope of their activities, the Board of Directors, Group Executive Management, as well as all other managers at VP Bank, personify the fundamental values and principles of behaviour prescribed in the “Code of Conduct”.

In terms of its responsibility towards the environment, VP Bank takes targeted measures for the frugal use of natural resources. Through its business activities, VP Bank is in constant interaction with society and therefore con- tributes to the safeguarding and further development of Liechtenstein as a commercial and industrial location.

By documenting its activities, VP Bank offers insight into its social responsibility and contribution to the common good. The publication “Sustainability at VP Bank” has been issued since 2010.

Five years ago, a mobility concept was introduced at the Head Office in Vaduz. It features financial incentives for using public transportation as well as a graduated fee structure for employee parking spaces. The concept is self-financing: rental proceeds from the parking spaces are used for bonus payments to employees who waive the use of cars and parking spaces.

This concept also motivates employees to form carpools. In addition, VP Bank offers the free use of Mobility Cars, an arrangement that has met with an enthusiastic response. A favourable trend was to be seen again in the total number of kilometres driven for business purposes in employees’ own vehicles: after having already declined in 2010 by 47 per cent versus the previous year, the number fell by 8 per cent in 2011 and by a further 36 per cent in 2012. The use of a videoconferencing system has helped to reduce the business travel activities of employees, who also are provided with a free pass for bus and railway transport within Liechtenstein.

The bottom line of the Mobility concept is impressive: all goals have been achieved – a reduction of automobile traffic, the fostering of environmental awareness, the promotion of public transportation, and an elimination of the shortage of parking spaces. This concept is exemplary throughout the region. In March 2011, VP Bank’s mobility management approach received the “Zurich Climate Prize”, which honours measures aimed at improving energy efficiency and reducing CO2 emissions.

As a general rule, VP Bank sends out client asset statements only once a year; daily and quarterly statements are printed and dispatched only at the express request of the client. In recent years, this has led to a considerable reduction in the use of paper for forms and statements. For example, the number of printed forms has declined steadily from 655,000 in 2005 to 353,400 in 2012, as has the number of envelopes from 1,300,000 in 2005 to 821,673 this past year. However, due to the bevy of new regulations, both totals rose versus the previous year as more frequent client mailings were made necessary.

Paper consumption has steadily decreased from 49.59 tonnes in 2008 to 41.09 tonnes in 2012 and now stands at the lowest level since 2004. The sharp increase in the number of e-banking clients has contributed significantly to this gratifying development.

VP Bank prints its publications – including its Annual Report – on environmentally certified paper. FSC (Forest Stewardship Council) certification guarantees that the paper originates from wood harvested in exemplary, environmentally friendly forestry operations. Since 2010, payment order forms have also been printed on FSC-certified paper.

Thanks to the introduction of order cards and referral to documents in electronic form, the number of printed copies of the Bank’s annual and semi-annual reports has declined by roughly 65 per cent over the past five years. Since 2010, the electronic communications of VP Bank Group include the footnote “Please consider the environment before printing this e-mail”.

For the Vaduz and Zurich locations, the number of e-mail documents has increased dramatically: in 2007, the total was approximately 130,250; by 2011 it was already more than 696,270 and in 2012 about 778.609 – an increase of 11 per cent compared to the previous year.

Water consumption once again declined markedly versus the previous year and now lies below all readings recorded since 2004: water consumption per employee has dropped from 16.3 m3 in 2005 to 12.3 m3 in 2012.

Through numerous initiatives, VP Bank Group is focussing on the prudent consumption of energy. Those measures extend from the environmentally friendly manner in which the renovation of the Bank’s headquarters in Vaduz and construction of the new service centre in Triesen were accomplished, to the use of geothermal energy for heating and cooling, right through to the use of motion-activated lighting. Total power consumption at the Bank’s Liechtenstein facilities has been on the decline for four years now thanks to efficiency-enhancing measures, amongst them an optimised cooling aggregate in Triesen for office air conditioning, which was installed in 2012.

For more than 15 years, a photovoltaic power generator has been in operation on the roof of the building in Vaduz. It supplies environmentally friendly energy that is fed into the Bank’s power grid. Owing to a rejuvenation of the control system for this installation, power generation from photovoltaics increased continually from 2009 to 2011. However, in 2012 it decreased by some 6 per cent, partly due to unfavourable weather conditions. 

The unusually cold temperatures in February 2012 were also responsible for an increase in heating oil consumption. 

By means of heat-recovery technology, VP Bank recycles thermal energy with the goal of minimising its primary energy consumption. Thanks to a “recuperator”, the Bank’s natural gas consumption was reduced by more than 60 per cent versus 2011.

The differing types of buildings at VP Bank call for an overall concept that brings all of its Liechtenstein facilities up to the same level in terms of power technology. The goal of this concept is to harmonise all of the existing installations, optimise the distribution of power and efficiently exploit any ambient heat loss. To that end, energy flow meters were installed in 2009 in order to record and optimise the flows of energy from heating and cooling. The evaluation is adjusted to take seasonal fluctuations into account. The results flow into the measures for fine-tuning the Bank’s overall energy supply. In addition, the energy supply project foresees the continued use of leading-edge technologies that enable heating on the basis of heat recovery. An initial implementation phase has been under way since the start of 2013.

In the autumn of 2012, a new service contract for photocopiers was signed. The old copiers will be replaced in the spring of 2013. The new devices are made of recycling- capable components and use environmentally friendly polymerised toner, which, in its production, generates 40 per cent less CO2 emissions than conventional toners. Another major advantage is the lower TEC (typical electricity consumption) rate, which expresses the average weekly power consumption of electronic products based on their normal office uses. This new generation of equipment switches more rapidly to the sleep mode and requires considerably less energy than previous models. That in turn helps VP Bank to reduce its operating costs and fulfils the goal of continually applying new technologies to minimise energy consumption and hence further reduce CO2 emissions.

Ever since 2004, waste separation has been the order of the day at VP Bank: paper, glass, cardboard, polystyrene, PET bottles and green waste each have their own receptacles. 

The total amount of waste generated in 2012 was 188 tonnes or 6 tonnes more than in the previous year, this after four years of steady decline. The reading per employee of 0.38 versus 0.36 tonnes was also slightly higher, however still significantly below the amounts recorded in 2007 through 2009.

Responsibility for the Bank’s environmental sustainability is borne by the Logistics & Security unit. The head of the unit represents VP Bank in the Swiss Network for Sustainability and Management. 

VP Bank is also involved in the municipality of Vaduz’s operational mobility management, where it contributes to a professional exchange of experiences gained in the area of mobility management.

The Mobility Management project group of the Liechtenstein Chamber of Commerce and Industry is another body in which VP Bank actively participates. VP Bank is also a member of “Öbu”, the Swiss network for sustainable business operations and think tank for environmental, social and management topics.

VP Bank has been participating in the Carbon Disclosure Project (CDP) since 2008. CDP is an international non-profit organisation that has the goal of seeing to it that companies and communities lower their CO2 emissions and deal with water in a sustainable manner. On behalf of investors, CDP Switzerland gathers data and information on CO2 emissions, climate risks as well as the reduction goals and strategies of the largest exchange-listed Swiss companies. The findings are published in an annual report.

VP Bank is certified under ISO 14001:2004 (Environmental Management), which underscores the viability of its environmental and sustainability policy. The themes of “operational ecology” and “social/communal” have been integrated into the existing quality management system. 

VP Bank evidences its responsibility as an employer by fostering modern and attractive work conditions. Motivation and good health have just as much influence as the actual physical office environment does on the performance of each individual; and that in turn influences the success of the entire company.

VP Bank needs to have motivated, well-educated employees who exemplify service orientation, competence and open-ness vis-à-vis their clients. One prerequisite for that is a work environment in which all employees feel comfortable and at the same time are encouraged. VP Bank offers them the leeway to come up with and implement their own ideas. It motivates them to achieve superior performance, offers them opportunities for training and continuing education, and fosters a healthy work/life balance. 

Special emphasis is placed on training young people in order to ease their entry into the business world and give them a sense of what the future can hold. VP Bank expressly encourages the private commitment of employees to public offices, schools of higher education, work groups and professional organisations.

In Liechtenstein, the VP Bank Sports Club organises numerous activities that are either free or available at sharply reduced prices. On the VP Bank intranet, a wide array of information is available on the topics of “Fitness at the workplace” and “Healthy eating”. Stress checks, a stop-smoking programme and a special “Fruit box” offer are also part of this effort. In addition, at its facilities in Vaduz, VP Bank offers the “well.system”, which enables individualised management of personal health-related habits.

VP Bank has a long tradition of donating to or sponsoring numerous charitable organisations, initiatives and projects in the areas of social services, relief organisations, health, education, culture, nature conservation and the environment.

The VP Bank Art Foundation was established in 1996 for the purpose of collecting contemporary works by international as well as regional artists. Its aim is to foster an understanding of art both within and outside the Bank. The acquired works can be viewed in the offices of the Bank and are also loaned out to third parties for display at art exhibitions. In 2012, three notable paintings were acquired and a new publication was presented. The latter is a status report and discusses the direction in which the collection is headed. But it also addresses the general environment for the collection and thereby takes a closer look at the people involved.

The VP Bank Foundation, which was initiated in 2006 on the occasion of the 50th anniversary of VP Bank and founded in 2007, supports – in keeping with its Articles of Incorporation – a wide range of projects, institutions and individuals who stand out for their accomplishments in the areas of ecology, art, education, sciences or culture. Grants are also provided for activities that serve the public good. In addition, this support should in some way be connected with or closely related to both the Principality of Liechtenstein and the corporate values of VP Bank. Donations may also be made for welfare and social purposes. 

In March 2012, the Board of Directors of VP Bank appoint- ed the existing members of the Foundation’s Board of Trustees – Hans Brunhart, Fredy Vogt and IGT Intergestions Trust reg. – to a further term of office. During the year under review, the Foundation distributed grants amounting to approximately CHF 380,000. 

As in the previous two years, support of the Chair of Company, Foundation and Trust Law at the University of Liechtenstein was a prime example of the Foundation’s patronage. By providing annual grants of CHF 100,000 over the past three years, the VP Bank Foundation, in collaboration with the Liechtenstein government, has offered financial as well as ideational backing for this chair. The final CHF 100,000 tranche of this support was paid in January 2013. With this patronage, the Foundation has fostered the scientific assessment of legal issues that are of tremendous significance to the positioning of Liechtenstein as a financial centre. Since its inception, the Chair has gained a high profile and enjoys great acceptance and a fine reputation. The VP Bank Foundation will not prolong this engagement, which had the character of start-up funding, beyond the term of the original agreement; however, it will consider supporting concrete projects of a small magnitude. 

The agreement with the University of Liechtenstein on supporting the research project “The specific structure of Liechtenstein as a microeconomy”, which also had a three-year term, has expired inasmuch as the project was concluded at the end of last year. The project resulted in new and important findings with regard to the economic structure of Liechtenstein. Thus the VP Bank Foundation can pride itself in the outcome of this sponsorship effort.

With a donation of CHF 18,000, the VP Bank Foundation is supporting a project aimed at facilitating access to data on sustainable investments. The funding has been made available to specific participants in the continuing education programme of the CEPS Centre for Philanthropy Studies as well as students at the University of Basel. Further significant engagements in the field of education include scholarships for especially gifted students at the Rheintal International School and the now long-standing contributions to the Bildungs- und Seminarhaus Gutenberg.

In the area of ecology, the Foundation supported VP Bank’s initiated and funded foundation “pro natura – pro ski” this past year with a contribution in the amount of CHF 70,000. The activities of this foundation make a recognised contribution towards balancing the various interests involved in the environmentally friendly development of winter sport areas, in close collaboration with the University of Natural Resources and Life Sciences in Vienna.

Ever since its establishment, the Foundation has attached great value to the continuity of support in the areas of ecology, education and science and will continue to pursue this policy in the coming years, albeit with some changed accents.

Of particular note in the area of culture is the Foundation’s engagement in the “arte povera” exhibition by Liechtenstein Art Museum as a part of the Weimar Art Festival. Through the successful interaction between the Principality of Liechtenstein and a number of local foundations and companies, it was possible to realise this project.

In connection with the annual “Lichtblick” campaign, more than 40 social institutions in Liechtenstein received grants from the Foundation totalling approximately CHF 100,000. 

Again in the past year, a portion of the Foundation’s capital was invested in the EMF Microfinance Fund AGmvK as well as in VP Bank “Balanced” (CHF) Strategy Fund class C units; both of these positions will be maintained. Income from the latter holding was used in part for contributions to the international relief organisations of SolidarMed. Owing to the recognised performance of this NGO, the appropriation of funding was renewed during the period under review and the amounts were increased.

The VP Bank Foundation is a member of the Association of Liechtenstein Non-profit Foundations e.V. and the “SwissFoundations” association of charitable institutions. The Board of Trustees is involved in the expansion of the Liechtenstein association and benefits from the valuable exchange of ideas in both organisations.