Sustainability at VP Bank

Given today’s global developments, corporate responsibility vis-à-vis society as a whole is having an ever-greater influence on the public’s perception of companies. Sustainable corpor­ate leadership, corporate social responsibility (CSR) and corporate citizenship are various terms used to describe the matter, but they essentially mean the same. The objective is to take a holistic view of the business activities and shape them in a way that is economically, ecologically and socially reconcilable. The banking sector is one of the most significant industries in an economy and is therefore closely scrutinised by analysts and investors. In their assessment of a company, they are placing more weight on responsible corporate dealings.

VP Bank’s role in society is marked by its clearly perceivable sense of responsibility versus stakeholders and the environment. For VP Bank, a management mindset that embraces sustainable corporate leadership is a crucial factor in successful entrepreneurial activity.

VP Bank Group is committed to the principle of sustainability. It is convinced that responsible actions and economic success are interdependent. The business model of a bank is based on the trust of its clients. VP Bank’s activities in the area of sustainability foster and reinforce that trust. Thus, responsible action is a key element of the corporate culture, the internal work processes and the operative business of VP Bank. Moreover, VP Bank maintains high standards with regard to corpor­ate governance.

VP Bank maintains a constructive dialogue with its clients, employees and shareholders, as well as with its ancillary social environment, and takes their feedback into account in its business decisions. By doing so, the Bank generates added value for all of its stakeholders.

Stiftung Fürstl. Kommerzienrat Guido Feger is the largest shareholder of VP Bank. Established by the Bank’s founder in 1954, it supports social, charitable and cultural projects, thereby shaping the corporate culture at VP Bank Group and lending expression to the Bank’s social character.

As a partner of the Swiss Climate Foundation, VP Bank provides financial support for the energy efficiency and climate protection projects of small- and medium-sized companies in Switzerland and Liechtenstein.

In addition, VP Bank strives to uphold its responsibility towards the environment by means of targeted measures for the sustainable use of resources. Moreover, due to its commercial activities, VP Bank is by definition in an active interrelationship with society as a whole, and thus contributes to the further development and preservation of Liechtenstein as a centre for finance and industry.

With its sustainability policy, VP Bank defines precise min­imum standards for the products and services it offers. This policy applies just as much to the acceptance of savings deposits as it does to the granting of loans and the conduct of the investment business. As a part of this, VP Bank makes every effort to keep its banking operations CO₂-neutral.

In conducting its banking business, VP Bank actively hinders bribery – which represents the core of corruption –, the granting and receiving of undue advantage, and money laundering. This is achieved, on the one hand, through regular client advisor training sessions and, on the other hand, by monitoring compliance with the rules laid down in the Service Regulations and the Code of Conduct. 

Apart from the values and management principles of VP Bank, the Code of Conduct documents the Bank’s commitment to ethically correct business practices. VP Bank pursues its vision of generating enthusiasm by offering its clients unique experiences. This requires trust and closeness to the client. VP Bank fosters both of these aspects by voluntarily observing ethical principles in its business activities and creating a viable foundation of rules for its conduct.

The Code of Conduct lays down the ethical principles of VP Bank that are binding on all employees, and serves as a guideline for proper behaviour. Each employee receives a copy of the Code of Conduct upon joining the company. The document is also available on the VP Bank intranet as well as on the Bank’s website as a downloadable file. Contraventions of the Code of Conduct are dealt with without compromise through disciplinary measures and the consequences applicable under labour law.

In addition, the Service Regulations of VP Bank specify im­portant manners of behaviour with regard to banking secrecy, discretion, data integrity, equal opportunity, social media guidelines, conflicts of interest, insider information and data protection. The Service Regulations take the form of a direct­ive and are an integral part of each employment contract. They apply to all employees of VP Bank.

It is the goal of VP Bank to constantly broaden and improve all of its efforts in the area of sustainability. In August 2015, Group Executive Management resolved to redouble those efforts: the topic of CSR is being emphasised even more in all areas of VP Bank Group. Several examples of how this is being accomplished: 

• increased networking with the Bank’s relevant interest groups;
• VP Bank’s adoption of the UN Global Compact (see below);
• active internal fostering of consciousness with regard to the related issues;
• greater integration of sustainability aspects into the client advisory discussion; and
• the introduction of a “Volunteering Day”.

For the implementation of these activities, a CSR workgroup was established in 2015.

The reports on the measures taken and results achieved are at present based mainly on data from Liechtenstein. VP Bank foresees being able in the next several years to introduce a reporting routine devoted specifically to environment-related numbers. Further information on the topic of sustainability/CSR can be found in the following sections of this annual report:

• “VP Bank’s stakeholders”
• “VP Bank’s suppliers”
• “VP Bank’s business ecology”
• “The social engagement of VP Bank”

Absolute transparency is pivotal in the ability to do business and assume corporate responsibility in a sustainable way. This means disclosing information that is important to the key interest groups/stakeholders. As a socially responsible enterprise, VP Bank also wants to set an example with the reporting it provides to its stakeholders.

In an effort to make Europe’s economy more successful and competitive, the EU has prescribed that major companies with dealings in the capital markets must in future disclose not only financial, but also non-financial key readings. In February 2014, the EU member states agreed on a report­ing obligation concerning social responsibility (CSR). Going forward, large companies should report on their achieve­ments in the areas of society, the environment, their em­ployees, human rights, the fight against corruption and the diversity in their corporate bodies. One of the framework ordinances the companies can draw on for this purpose is the UN Global Compact.

The United Nations Global Compact is a universal conven­tion concluded between companies and the UN with the aim of shaping globalisation in a more social and environ­mentally friendly way. It is the largest sustainability initiative the world has ever seen: more than 12,000 signatories in 170 countries, 8,000 of them companies, have committed to this endeavour.

By signing the Compact, companies assume the obligation to comply with certain social and ecological minimum standards in the years ahead. The tenets are codified in the form of ten principles – companies are called upon to:

1. support and respect within their sphere of infl uence the protection of internationally proclaimed human rights;
2. make sure that they are not complicit in human rights abuses;
3. uphold their employees’ right to freedom of association and the effective recognition of the right to collective bargaining;
4. eliminate all forms of forced and compulsory labour;
5. effectively abolish child labour;
6. eliminate discrimination in respect of employment and occupation;
7. support a precautionary approach to environmental challenges;
8. undertake initiatives to promote greater environmental responsibility;
9. encourage the development and diffusion of environmentally friendly technologies; and
10. work against corruption in all its forms, including extortion and bribery.

The signatory companies are to draw up an annual report on their compliance with the foregoing principles. 

VP Bank has decided to adopt the provisions and spirit of the UN Global Compact. The Bank’s membership commenced in early 2016. In its 2016 annual report, VP Bank for the first time will give an account of its compliance with the guidelines of the Compact.

Further information on the UN Global Compact can be accessed via the following link: www.unglobalcompact.org