Commitment to sustainability

Sustainability will shape the future. By integrating sustainability criteria into all of its business processes, VP Bank wants to have a positive impact on society and the environment while at the same time making an active contribution to the sustainable development in the finance industry.

VP Bank has developed its Sustainability Plan 2026 in close cooperation with internal and external stakeholders. In order to identify the areas with the greatest potential impact and set appropriate goals, VP Bank spoke with ­clients, shareholders and employees, held workshops with the Board of Directors and external experts, and carried out a materiality analysis. The plan went into effect on ­ 1 January 2021. The sustainability plan includes both products and business activities. Consistent implementation of this strategy is intended to bring about positive change and drive the growth of the company.

An overview of how VP Bank defines risks and opportunities and how the Bank aims to positively impact society and the environment and balance out any possible negative impacts can be found in chapter “Communication on progress” of the Sustainability Report 2022.

VP Bank believes that growth, profitability and stability go hand in hand with a positive impact on the environment and society as a whole. In 2020, the Bank launched its “Investing for Change” initiative to consistently integrate sustainability factors into the investment and advisory process. The VP Bank Sustainability Score (VPSS) was developed to make it possible to evaluate financial instruments in terms of sustainability criteria. The VPSS provides a broader assessment of sustainability than typical ESG ­ratings. Since 2021, investments have also been reviewed ­ in terms of whether or not they contribute to the achievement of the United Nations’ Sustainable Development Goals (SDGs).

More information about the VPSS as well as a detailed description of inclusion and exclusion criteria can be found on the VP Bank website at Private clients > Sustainable investing.

VP Bank has made it a goal to offer its clients new investment opportunities in the area of sustainability. To this end, the Bank has added, for example, risk-optimised ESG equity funds and the Green City Basket. In 2021, VP Bank consistently integrated the evaluation of sustainability criteria in accordance with the VPSS into all discretionary mandates and launched the Sustainable Plus offer, which offers additional themes such as investing in green and social bonds, microfinance and sustainability-related thematic investments.

Further information about sustainable investments, including the thematic and impact-oriented investment approach, can be found on the VP Bank website.

For VP Bank, a management approach that includes sustainable corporate governance is a key factor for success. Sustainability also includes the well-being of the Bank’s employees and the communities in which the Bank is active. For ­this reason, VP Bank aims to continually improve its working conditions and increase community involvement while at the same time complying with best-practice standards and principles, intentionally investing in further training for employees, and promoting innovation.

Further information can be found in chapter “Our social contribution (S)” of the Sustainability Report 2022 as well as in the “Employees” chapter of this annual report, in which the personnel strategy is described.

In 2021, VP Bank signed the UN Principles for Responsible Banking (PRB) and the UN Principles for Responsible Investment (PRI) and joined the Net-Zero Banking Alliance (NZBA). It is also a member of the UN Global Compact (UNGC), Swiss Sustainable Finance and the Swiss Climate Foundation. 

With its Sustainability Report 2022, VP Bank discloses information in accordance with the requirements of PRB and PRI as well as the progress reports required by the UNGC. The report is compiled in accordance with GRI Standards and includes a number of the indicators suggested by the ­Sustainability Accounting Standards Board (SASB). More recently, the Bank implemented the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and highlighted contributions to the UN SDGs in the report.

Further information about sustainable governance, including details concerning the above-mentioned standards and guidelines, can be found in chapters “Stakeholder Engagement” and “Climate related financial disclosure” of the Sustainability Report 2022.

The Paris and Glasgow Agreements have mapped out a plan for fighting climate change. VP Bank’s goal is to be carbon-neutral by 2026. The Bank’s stakeholders agree on the gravity of this issue and have ranked climate change and the efficient use of resources as two key topics as part of the materiality analysis that was carried out.

VP Bank Group has relied on renewable energies for quite some time. For example, solar panels on the roof of the Giessen building in Vaduz have provided the Bank with eco-friendly energy for around 25 years. Further technologies that are used in some of the Bank’s branches include LED lighting, motion-sensor lights and various renewable energy sources such as geothermal heat pumps.

More information about the Bank’s CO₂ target and its progress in terms of environmental protection can be found in chapter “Our ecological contribution” of the Sustainability Report 2022.

In accordance with its Articles of Association, the VP Bank Foundation supports exceptional projects, institutions and persons in the fields of the environment, arts, education, science and culture. In 2022, the Foundation awarded funds totalling around CHF 210,000, which were distributed as shown in the figure below.

Sustainability also means taking responsibility for future generations. In future, VP Bank aims to help its clients obtain new perspectives and achieve new goals in the area of philanthropy with the dedicated Philanthropy and Impact area of responsibility.