Sustainability mandate

The LLB Group’s business policy, which is focused on continuity, forms the basis for sustainable action. Sustainability to us means balancing economic viability with social and environmental responsibility. The Annual Report 2017 contains an integrated “Stakeholders report” for the third time, the first time being in 2015 and the second in 2016. It was prepared in accordance with the Global Reporting Initiative (GRI) Standards – “Core Option”. By doing this, we are highlighting our proactive focus on sustainability.

Implementation of the CSR Directive

Since 2017, capital market-oriented corporations as well as large credit institutions and insurance companies that have more than 500 employees have been required to disclose information about their Corporate Social Responsibility (CSR) performance in their annual report. In September 2016, EEA country Liechtenstein amended its Persons and Companies Act (PGR) and implemented Directive 2014/95/EU (the CSR Directive on disclosure of non-financial and diversity information). For the first time ever, Liechtenstein has regulations on reporting about certain sustainability topics such as environmental, employee and social matters, as well as respect for human rights, anti-corruption and bribery matters.

LLB met EEA requirements a year before the law came into force in Liechtenstein. At the end of 2014, it compiled a set of around 25 sustainability topics. In 2015, in accordance with version 4.0 of the GRI, we established, reviewed and evaluated a list of material aspects and indicators and focused on strategic priorities, as shown in the materiality matrix on the right. We reviewed and supplemented the material aspects in 2016 and 2017.

Value-oriented

The values of “integrity”, “respectfulness”, “excellence” and “pioneering” (see chapter “Strategy and organisation”) underpin the LLB Group’s actions. We are client-oriented and, as such, are investing in the further development of the physical and electronic contact points (see chapters “Retail & Corporate Banking”; “Corporate Center”). Here we are paying particular attention to meeting our clients’ security needs and our data protection standards for the use of the various distribution channels at all times. Our internal code of conduct provides a guiding framework for the value-based and responsible actions of all employees (see chapter “Strategy and Organisation”).

Contribution to the sustainable development of Liechtenstein

The LLB Group is involved in different cultural, environmental and social areas (see chapter “Brand and sponsoring”) and thus in the sustainable development of a prosperous Liechtenstein. This forms the basis for the fulfilment of our performance mandate. We indirectly promote Liechtenstein as a workplace and contribute to the prosperity of the people (see chapter “Retail & Corporate Banking”).

In dialogue with stakeholder groups

For the LLB Group, sustainability as a corporate responsibility means meeting the expectations of the different internal and external stakeholder groups. The Group Corporate Communications & General Secretary Business Area works together with the line and support units of the core team on an ongoing basis to further develop the key sustainability topics.

While the members of this core team represent the views of the LLB Group, they are in regular dialogue – personally, by electronic media or telephone, or at information meetings, working sessions, roadshows or conferences – with the different stakeholders who we influence and who, in turn, influence the course of our business.

The stakeholder groups are in particular:

• Clients: Their needs are uppermost at every point of contact. Our client advisers systematically record client needs plus private and corporate client satisfaction. The LLB Group fosters partnership-based dialogue with its institutional clients via its “LLB Xpert Views” online platform and in round-table discussions (see chapters “Retail & Corporate Banking”, “Private Banking” and “Institutional Clients”).
• Principality of Liechtenstein: The Principality of Liechtenstein is our majority shareholder. The Chairman of the Board of Directors of the LLB Group and the Group CEO submit a bi-annual report on the course of business to the Head of the Government of Liechtenstein. Once a year, the Board of Directors and the Group Executive Board exchange views with the entire Government. It, in turn, reports to the Audit Commission of the Landtag (Parliament) on the implementation of the investment strategy of Liechtensteinische Landesbank AG (see chapter “Corporate governance”).
• Shareholders: In addition to the annual General Meeting of Shareholders, we exchange views with our shareholders at investor presentations and in regular meetings with the Liechtenstein Government as the representative of the majority shareholder, the Principality of Liechtenstein (see chapter “Corporate governance”).
• The public: We are in continuous dialogue with the public through our employees. We also foster an intensive exchange with media representatives (see chapter “The LLB share”).
• Partners and non-governmental organisations (NGOs): Through our membership of associations and organisations, we maintain a dialogue with partners and NGOs (see chapters “Regulatory framework and developments”, “Institutional Clients”, and “Responsibilities for society and the environment”).
• Employees: We obtain our employees’ opinions by engaging in dialogue during the annual objective-setting process as well as in the employee survey, which is conducted every two years (see chapter “Employees”).

Key sustainability topics

Sustainable business management and long-term responsibility are core values to us. The key factors in selecting and prioritising topics for the materiality matrix were: the external impact; the impact on the stakeholder groups; the relevance to the existence of the banking group; and public perception. For the key sustainability topics, we defined the relevant GRI aspects and indicators. The LLB Group closely monitors the topics included in the materiality matrix (see chart below) and addresses them individually. The topics positioned in the top right of the matrix are of particular significance. In 2017, we further developed the process of identifying and managing sustainability topics.

Drink tap water – donate drinking water

LLB joined “Drink & Donate” – a drinking water project. Since February 2017, hydration stations that use fresh tap water have been provided at its headquarters in Vaduz. Laboratory tests attest to its excellent quality. LBB donates CHF 60 per employee per year to “Drink & Donate”, a Zurich-based non-profit organisation. We donated a total of CHF 39’000 in 2017.

By consuming tap water instead of transporting branded bottled water thousands of kilometres, we want to reduce our CO₂ footprint, produce less waste, save energy and protect our environment. In this way, the 660 LLB employees in Vaduz and our clients make a sustainable contribution to supporting people in developing countries who do not have access to clean drinking water.