The LLB Group’s business policy, which is based on continuity, forms the basis for sustainable action. Sustainability to us means balancing economic action with social and environmental responsibility. At the end of 2014, we compiled a set of about 25 sustainability topics. In 2015, in accordance with version 4.0 of the “Global Reporting Initiative” (GRI), we established, reviewed and evaluated a list of material aspects and indicators and focused on strategic priorities.
The Annual Report 2015 contains the integrated “Stakeholders report” with its proactive focus on sustainability. The LLB Group is close to its clients and is investing around CHF 30 million in digitalisation over the next five years to adapt its distribution channels to the needs of its clients. It is an attractive and responsible employer, and, as a part of the community, is active in different areas of culture and ecology as well as society. Its contribution to the sustainable development of a prosperous Liechtenstein forms the basis for the fulfilment of its performance mandate.
In dialogue with stakeholder groups
For the LLB Group, sustainability as a corporate responsibility means fulfilling the expectations of the different stakeholder groups. In 2015, the business area Group Corporate Communications & General Secretary worked together with the line and support units in a newly formed core team to 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”).
- The 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 Finance 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 NGOs: Through our membership of associations and organisations, we maintain a dialogue with partners and non-governmental organisations (NGOs) (see chapters “Regulatory framework and developments”, and “Institutional clients”).
- 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”).
Materiality matrix for sustainability aspects
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 above) and addresses them individually. The topics positioned in the top right of the matrix are of particular relevance. In 2016, we intend to further develop the process of identifying and managing sustainability topics.