LLB Group on track towards climate neutrality
Vaduz, 16 November 2023. New products, a wide range of measures in banking operations, and exiting from fossil fuels in own investments: The LLB Group continues to make progress towards climate neutrality, as the bank's second TCFD report shows.
The LLB Group considers climate change to be one of the greatest challenges of our time. For this reason, the bank has set itself the ambitious goal of achieving full climate neutrality by 2040 as part of its ACT-26 corporate strategy – ten years earlier than envisaged by the Paris Agreement on climate change. As set out in the bank's target, carbon emissions from banking operations and products must be reduced to such an extent by 2040 that only a small residual amount will still have to be offset by compensation measures.
In this second TCFD report, the LLB Group provides information on the status of its efforts. Key indicators such as the carbon footprint of banking operations have seen a long-term decline. "We're headed in the right direction in banking operations," says Group CEO Gabriel Brenna. "The development in products is also positive."
Sustainable products launched
Highlights of the bank's efforts in 2022 included the expansion of its product range with new, sustainable products. LLB funds consistently take sustainability into account, including climate protection and respect for human rights. Two impact funds and the ESG+ asset management mandate enable investors to make targeted investments in companies and projects with a positive climate impact.
Climate-neutral banking operations
In banking operations, the LLB Group already achieved climate neutrality – with the help of offsets – in 2021. Carbon emissions that cannot be eliminated are offset with investments in environmental projects. In 2022, carbon emissions were reduced compared to the base year 2019. Measures such as the switch to green electricity and biogas, less commuting thanks to work from home, and a reduction in business travel have contributed to this long-term development. The goal is to gradually reduce the proportion of offsets by 2040 and replace them with reductions.
"What we've achieved over the past months shows that we are consistently pursuing our vision of full climate neutrality," says Group CEO Brenna, commenting on the positive development. "At the same time, we have to stay on the ball. The magnitude of the task does not allow us to take a break." The direction has already been set: In August 2023, the LLB Group decided to withdraw from own investments in companies in the fossil fuels sector. And at the beginning of 2024, the bank will launch new mortgages at favourable conditions that promote sustainable construction in its home markets for mortgage lending, Liechtenstein and Switzerland.
About the report
For the second time since 2021, the LLB Group is presenting a report in line with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), an international group of experts set up in 2015 by the G20 group of states and the Financial Stability Board (FSB). The aim of the TCFD recommendations is to create transparency on how reporting companies deal with climate risks. The information in the report relates to the 2022 business year. Strategic developments in the LLB Group were taken into account through August 2023.
Liechtensteinische Landesbank AG (LLB) is the longest established financial institute in the Principality of Liechtenstein. The majority of the company’s share capital is held by the Principality of Liechtenstein. LLB’s shares are listed on the SIX Swiss Exchange (symbol: LLBN). The LLB Group offers its clients comprehensive wealth management services as a universal bank, in private banking, asset management and fund services. With 1'168 employees (full-time equivalent positions), LLB is represented in Liechtenstein, Switzerland, Austria and the United Arab Emirates. As per 30 June 2023, the business volume of the LLB Group stood at CHF 102.3 billion.
- 26 February 2024, presentation of the 2023 business result
- 19 April 2024, 32nd ordinary General Meeting of Shareholders
Liechtensteinische Landesbank AG
Dr. Cyrill Sele
Head of Group Corporate Communications & Sustainability
Telephone +423 236 80 99