Information unaudited Information ungeprüftClimate change

As a company committed to corporate social responsibility, it is important to us to monitor negative impacts on the climate and to counteract them. We aim to meet this commitment by managing our greenhouse gas emissions both in our own operations and in our banking products.

The LLB Group seeks to contribute to the solution for a sustainable future. That is why we have developed a climate strategy. This strategy is designed to shape the successful transformation of the LLB Group with CO₂-reduced banking operations and customised banking products. Our greatest impact on the climate comes from our banking products and services, which generate significantly higher greenhouse gas (GHG) emissions than our own banking operations. Nevertheless, we also see it as our duty to monitor and, where possible, further reduce our GHG footprint in banking operations.

1 General information

We have identified the following material negative impacts in relation to climate change in the double materiality assessment:

• Negative impacts on people and the climate are caused by our operational GHG emissions, primarily from electricity consumption, externally sourced heating and air conditioning, business travel and employees commuting. We currently operate under the assumption that, as of 2025, the potential savings in banking operations that lie within our own sphere of influence have been largely exhausted and that these adverse effects will initially remain despite firm reduction measures.
• Even more significant than our operational GHG emissions are our financed GHG emissions. These are caused by the actions of our counterparties and are reflected in the GHG balance of the LLB Group. The majority of these emissions originate from either our asset management activities or from our own or third-party fund products. The current political and social discourse, reflected in the easing of regulatory pressure among other things, is leading to medium- to long-term uncertainty with regard to future GHG emissions trends.
• Financed emissions in the mortgage portfolio are also of significance. According to the European Environment Agency, real estate is responsible for around one third of all GHG emissions in Europe. By financing real estate in our domestic markets, we are indirectly contributing to these negative impacts. In addition, due to the long terms of mortgage loans, we assume that the effect on the climate and wider society will persist over the medium to long term.

The negative impacts mentioned concern the ESRS sub-topic “Climate change mitigation”. The sub-topics “Climate change adaptation” and “Energy” were not deemed to be material on account of our business model and value chain. Like other banks, we mainly operate office premises that are less energy-intensive than, for example, the production sites of manufacturing companies. Therefore, no significant impacts, risks or opportunities could be identified with regard to the energy factor. Nevertheless, energy plays an important role in achieving our GHG reduction targets in banking operations.

Below, we first set out the LLB Group’s transition plan for climate change mitigation (section 2). The transition plan specifies the basic guidelines and overarching objectives for all areas covered by the sustainability strategy: banking operations, own investments, asset management, fund products and loans. The subsequent sections 3 and 4 present the concepts and measures we have agreed or implemented in each of these four areas. Section 5 details our targets for reducing GHG emissions and the methodology applied to define these targets. Section 6 contains all Group-level key figures, in particular on energy consumption and energy mix, greenhouse gas emissions and on dealing with these emissions.

We have not identified any significant impacts, risks or opportunities with regard to our own investments. However, since our own investments also contribute to the increase in our GHG emissions, we have extended our GHG reduction target to this area in the spirit of a holistic climate strategy. We therefore voluntarily report on our efforts concerning own investments.

2 Transition plan for climate change mitigation

Our transition plan for climate change mitigation addresses the material negative impacts that relate to climate change mitigation. Its aim is to minimise negative impacts on the climate and climate-related risks by reducing our GHG emissions. By doing so, we strive to secure the long-term economic resilience of the LLB Group.

The transition plan is closely linked to our ACT-26 corporate strategy. As part of this, the LLB Group has set itself the goal of achieving absolute net zero greenhouse gas by 2040 – ten years earlier than agreed in the Paris Climate Agreement (see section Sustainability in our strategy and business model). We intend to achieve this goal in stages – see section Targets relating to climate change mitigation.

The LLB Group’s net zero target is consistent with limiting global warming to 1.5 °C. We are committed to achieving net-zero emissions by 2040, which has been identified in the guidelines of the Intergovernmental Panel on Climate Change (IPCC) as the critical threshold for achieving the 1.5 degree target. The IPCC scenarios clearly show that an early and sustained reduction of greenhouse gases is crucial to avoid excess emissions. A net zero in 2040 therefore has a significantly higher probability of limiting global warming to 1.5 °C than a net zero in 2050.

The LLB Group is not exempt from the EU Paris-aligned benchmarks according to Delegated Regulation (EU) 2020/1818. According to the ESRS, companies are exempted from the EU Paris-aligned benchmarks if they:

• derive 1 per cent or more of their revenues from the exploration, mining, extraction, distribution or refining of hard coal and lignite;
• derive 10 per cent or more of their revenues from the exploration, extraction, distribution or refining of crude oil;
• derive 50 per cent or more of their revenues from the exploration, extraction, manufacturing or distribution of gaseous fuels;
• derive 50 per cent or more of their revenues from electricity generation with a GHG emissions intensity of more than 100 g CO_2e/KWh;
• negatively impact one or more of the EU environmental objectives under the Taxonomy Regulation.

None of the criteria listed above apply to the LLB Group.

2.1 Major decarbonisation levers

We have identified multiple decarbonisation levers that are helping us achieve our GHG emissions reduction targets. We consider the following to be the most important levers in terms of our net zero objectives:

• Product changes: We aim to reduce our financed GHG emissions through the ongoing optimisation of our product portfolio. Measures in this area include, for example, our sustainable impact-oriented funds and our environmentally friendly mortgage product for promoting energy-efficient renovations and environmentally conscious new builds. As well as this, in early 2026 we launched the “0%-Energiehypothek” (0 per cent energy mortgage) in Liechtenstein, which is a zero interest loan for energy-efficient renovation projects.
• Decarbonisation of own investments: With the almost complete phase out of the fossil fuel sector, the targeted removal of GHG-intensive investments and the consistent application of our sustainable investment approach, we continued to make significant reductions in our financed GHG emissions in our own investments.
• Low-emission mobility: A considerable driver of our operational GHG emissions is the commuting of our employees to work and emissions caused by business travel. Consequently, a major part of our efforts is aimed at promoting climate-friendly mobility within the LLB Group – for example through our mobility concept.

Further details on our decarbonisation levers and the corresponding measures are included in the sections Measures relating to climate change policies and Expected decarbonisation levers.

2.2 Expenses for the transition plan

The attributable costs – that is, those expenses which can directly and clearly be allocated to the transition plan – make up less than 5 per cent of annual operating expenses and are not considered material. They include, for example, internal personnel costs, software/licence costs and external consultation/auditing costs. Any opportunity costs, arising for example from our own investments, have not been taken into account. As a financial company, we do not calculate CapEx and OpEx metrics; therefore, we use operating expenses as the basis for the assessment.

2.3 Embedded GHG emissions

The risk of embedded GHG emissions exists particularly in the mortgage portfolio. GHG-intensive real estate projects can have a negative long-term impact on our GHG balance and emission reduction targets, as withdrawal from these assets is legally and economically only possible to a limited extent. In order to mitigate this risk, already in the previous reporting year we adopted a concept aimed at reducing stranded assets in our lending activities (see section Policies relating to loans). In 2025, we also initiated a project which more firmly integrates transparency regarding GHG emissions in the relevant processes and structures.

2.4 Correlation with the EU Taxonomy

Our transition plan is not yet linked to the performance indicators of the EU Taxonomy. The transparency required for strategy integration is accelerated through targeted initiatives, such as data collection, and takes into account the ever-changing regulatory discourse. In general, we assume that high taxonomy scores are linked to a positive contribution to macroeconomic transformation and enhanced corporate resilience.

As a financial company, the LLB Group does not carry out any economic activities that make a significant contribution to the EU’s environmental objectives of “climate change adaptation” or “climate change mitigation” in accordance with the Taxonomy Regulation. However, we finance or invest in counterparties whose economic activities fall within the scope of the EU Taxonomy. The share of on-balance sheet assets related to environmentally sustainable (i.e. taxonomy-aligned) economic activities is expressed in the Green Asset Ratio (GAR); further performance indicators are defined for off-balance sheet assets (see chapter on EU Taxonomy).

2.5 Correlation with business strategy and financial planning

The transition plan for climate change mitigation is embedded in the LLB Group’s business strategy: Sustainability is one of the three key elements of our ACT-26 corporate strategy. As a result, our net zero objectives have the same strategic importance as the other two key elements, “Growth” and “Efficiency”. In practice, this means that sustainability aspects are taken into account when making important business strategy decisions. The transition plan is not shown separately in the financial planning. The required resources are taken into account within existing budget structures, meaning the measures are financially secured.

2.6 Role of administrative, management and supervisory bodies in the transition plan

The Group Executive Board and the Board of Directors are responsible for determining and monitoring the defined GHG reduction targets. Due to their membership in the Sustainability Council, members of the Group Executive Board are regularly informed about operational and financed GHG emissions and are included in the decision-making process for implementing important mitigation measures.

The Board of Directors is informed about strategic progress during the strategy updates. The annual strategy review in 2025 also included a detailed report on the status of GHG emissions and a discussion of proposed measures. Information regarding financed GHG emissions is provided by way of the risk report, with a focus on our own investments and mortgages. Measures for adapting the transition plan are proposed by the Group Executive Board and decided upon by the Board of Directors (see section Sustainability governance).

2.7 Progress in implementing the transition plan

During the reporting year, we made progress with implementing our transition plan in various areas. GHG emissions intensity was reduced in our own investments, asset management mandates and our own funds (minus 25.8 %) as well as in banking operations (minus 6.8 %).

The positive trend is the result of a series of targeted measures. We continually optimise our own investments, asset management and our own fund management in view of exposed greenhouse gas emitters. Furthermore, the internal ESG database was developed for the purpose of increasing transparency and controllability for all relevant stakeholders. With regard to our own investments, the almost complete withdrawal from the fossil fuel sector had a tangible positive impact on our financed emissions. In terms of banking operations, the mobility concept, which was revised in 2024, and the business travel regulations are proving to be increasingly effective.

Other measures were implemented or decided upon in the reporting year; however, we anticipate that these will only start to contribute to the objectives of our transition plan in the coming years. They include, for example, the launch of the “0%-Energiehypothek” (0 per cent energy mortgage) at the beginning of 2026, which enables us to promote energy-efficient renovation projects in Liechtenstein, as well as the construction of Haus Giessen and the upcoming strategic withdrawal from the Middle East.

2.8 Resilience of the business model against climate risks

In order to assess the resilience of our business model against climate risks, in 2025 a resilience analysis was carried out for our investment portfolio (LLB’s own funds, asset management mandates, own investments) using MSCI’s Climate Value-at-Risk model. The aggregated Climate Value-at-Risk (CVaR) stated takes into account political and regulatory transition risks and technology-related opportunities and risks as well as physical climate risks. The analysis is based on three scenarios from the Network for Greening the Financial System (NGFS) modelled up to the year 2050 (see table below).

Transitional climate scenarios for the calculation of CVaR

The results show that the aggregate CVaR of the investment portfolio ranges from minus 4 per cent to minus 8 per cent across the NGFS scenarios considered. In comparison, the MSCI World Index presents a higher aggregated CVaR in the corresponding scenarios, ranging from minus 5 per cent to minus 11 per cent. This benchmark comparison indicates that our investment portfolio is exposed to fewer climate-related transition risks compared to a global equity index and is therefore more resilient against climate risks.

These results are currently understood as an indicative assessment. As part of the ongoing ESG risk management project, both the models used and the findings obtained up to now are being subjected to a critical, more in-depth review. Furthermore, intensive work is under way to expand the climate resilience analysis to other business areas, particularly our lending activities.

In order to adapt our business model to climate change in the short, medium and long term, we have expanded our product range with ESG characteristics in recent years (in particular LLB’s own funds and asset management mandates) and, with regard to our own investments, we have decided to almost completely withdraw from companies in the fossil fuel sector. However, our ability to adapt is fundamentally dependent on the progress of the transformation toward a sustainable and resource-efficient economy. Only if we find sufficient investment opportunities on the asset side that align with the global 1.5-degree target can we successfully complete the transformation of our portfolios. We closely monitor global political, economic and regulatory developments as they have a major impact on the value of our investment portfolio.

3 Policies relating to climate change mitigation

ACT-26 and the transition plan provide the framework for managing our negative impacts related to climate change. There are also specific concepts for banking operations, own investment and various types of banking products, which we will present separately below. In particular, these strategies take into account the topic “Climate change mitigation” and, in the area of banking operations, also “Energy efficiency” and “Use of renewable energies”. In defining the strategies, we consider the expectations of our main shareholder, the Principality of Liechtenstein, in particular. The Principality has specified climate neutrality by 2040 as a target of its Participation Strategy.

Group Sustainability is responsible for the strategic and operational monitoring of our climate change mitigation concepts and the associated measures. At the operational level, structured discussions take place with the relevant Sustainability Streams at regular intervals or on an ad hoc basis if required. During these, planned measures are discussed and prioritised, while any challenges are addressed. As well as this, there is an annual strategy review on target attainment, during which progress, deviations and the need for adjustments are systematically assessed. The results feed into the further development of our concepts and into Group-wide management.

3.1 Policies relating to banking operations

As with other financial institutions, the impact of our banking operations on the climate is relatively small. This is demonstrated by the comparison of our own GHG emissions (Scopes 1, 2 and 3.1 to 3.7) and our financed emissions (Scope 3.15); further information can be found in the Greenhouse gas emissions section. Nevertheless, we want to reduce our emissions in banking operations and exercise our responsibility.

For our climate-focused activities in banking operations, we measure and manage Scopes 1, 2 and 3.1 to 3.7 in all regions in which we operate, based on the definitions of the GHG Protocol. The most important lever for reducing our GHG emissions is the mobility of our employees. Commuting and business travel together account for the majority of our operational GHG emissions. Energy management as defined under Scope 1 and 2 represents the second largest lever in banking operations and therefore also plays a key role in our GHG targets.

3.1.1 Corporate mobility management

The key points for this area are defined in the “Mobility management of Liechtensteinische Landesbank AG including FL Group companies” policy, which was adopted by the Group Executive Board. The aim is to promote green mobility when commuting to and from our locations in Liechtenstein. The Group Logistics Services organisational unit is responsible for the operational implementation. All LLB Group company employees can view all the key information on the Intranet.

“Mobility Management 2.0” has been in force since the beginning of 2024, creating further incentives for climate-friendly mobility. At our locations in Liechtenstein, we have significantly increased our subsidies for using public transport and the bonuses that we pay employees who choose not to take up a parking space. By contrast, we apply a two-tier system of parking charges, which depend on the length of an employee’s commute. Discounts are available for electric vehicles and plug-in hybrid vehicles.

In addition, we have taken measures with regard to business trips by making changes to our expense regulations. For instance, staff travelling to social events and internal meetings are expected to use mainly public transport. GHG emissions from LLB Österreich commuter traffic are much lower than at our other locations due to the particularly well-developed Wiener Linien network. The bank has covered the cost of annual season tickets for public transport since September 2023 in order to make using it an even more attractive proposition. LLB Schweiz is currently weighing up changes to its own mobility management.

3.1.2 Energy supply

In order to control our GHG emissions in banking operations, we primarily rely on purchasing electricity from renewable energies (e.g. wind, solar, hydropower). In Liechtenstein, Switzerland and Austria, we have largely switched to green electricity. We have also installed solar panel systems at various locations. In LLB Group buildings in which natural gas was previously used, we have almost completely moved to biogas (as of 31 December 2025).

The Group Logistics Services organisational unit continues to identify potential energy savings and evaluates the outcome of efficiency measures. The requirements of the climate strategy are directly applicable to our energy management and are not operationalised within the framework of a separate policy.

3.1.3 Supplier management

The development, manufacture and delivery of items and materials (e.g. technical equipment, furniture, office supplies) that we need for our banking activities also cause GHG emissions. For this reason, we have adopted a Group-wide Code of Conduct for strategic suppliers, which must be signed by all suppliers above a certain purchasing volume. The suppliers of the LLB Group undertake to comply with the principles of the Code. These principles include the fight against corruption and money laundering, the protection of human rights, environmental and climate change mitigation measures as well as data protection.

Existing suppliers with an annual turnover of over CHF 1 million have signed the Supplier Code of Conduct. New suppliers must sign the Supplier Code of Conduct before entering into business relations. Moreover, we have established a media screening process for our Group’s suppliers in order to detect controversies at an early stage; this approach is being further expanded gradually. No other review steps are implemented at the moment. The Supplier Code of Conduct can be accessed on the LLB Group’s website.

In addition, we have stated in the Group directive “Purchasing Management – Group Sourcing & Procurement” that the sustainability effect of a product must be taken into account in the procurement process. The Group directive is available on the Intranet for all LLB Group company employees to access. The Group Sourcing & Procurement organisational unit is responsible for supplier management.

3.2 Policies relating to our own investments

We believe that our own investments are an important tool for reducing negative impacts on the climate and society. In contrast to many banking products, we have sole decision-making responsibility in this respect: We determine the companies, projects and financial instruments that we invest in. This gives us significant leverage to reduce our financed GHG emissions.

In order to fulfil our ecological and social responsibilities, we have defined a set of environmental, social and governance criteria for our own investments, which we take into account when making investment decisions. These include violations of international and national standards, the manufacture of controversial products and severe controversies involving companies.

Management tools and ESG criteria for our own investments

Particularly relevant for climate change mitigation is the exclusion of companies that generate more than 10 per cent of their turnover from coal in thermal use or from shale oil or gas. In 2023, we decided to withdraw from fossil fuels as much as possible. This means that for our own investments, we do not make any direct investments in companies in the fossil fuel sector. The exclusion is based on the NACE codes of our counterparties. We cannot completely rule out indirect investments via collective investments; however, these are immaterial positions (31 December 2025: significantly under 1 % of the total portfolio).

The sustainability criteria that apply to our own investments were decided on by the Group Asset & Liability Committee (GALCO) and comply with the Group Market Risk regulation. The criteria are continually reviewed and updated. The Group Treasury organisational unit is responsible for the operational implementation.

We also pursue our sustainability goals in our own investments through the active exercise of our shareholders’ rights and participation rights. Similar to the approach we take for our investment products (see section Policies relating to asset management and fund products), we apply the assessment methodology for Socially Responsible Investors (SRI) of International Shareholder Services (ISS) to exercise our voting rights on shares. We therefore follow the guidelines on the UN Principles for Responsible Investment (UN PRI).

3.3 Policies relating to asset management and fund products

In asset management and our LLB funds, we pursue a responsible approach that takes ethical, social and environmental aspects into account. Unlike with our own investments, our decision-making freedom in asset management is limited, as we always take the sustainability and investment preferences of our clients into account. Therefore, our options for reducing GHG emissions through our investments are limited.

We have opted to apply a methodologically comprehensive approach to the investment process. Similar ESG criteria are applied to the selection of individual securities as for own investments (see section Policies relating to our own investments). Suitable instruments to reduce our GHG footprint include the exclusion of or withdrawal from investments in coal and shale oil or gas, as well as targeted investments in climate-friendly companies or projects (green investments).

Management tools and ESG criteria for asset management

We also take note of EU Sustainable Finance Disclosure Regulation (SFDR) classifications when selecting external funds for our investment products. For this reason, our investment advice, the LLB range of funds and our third-party fund recommendations all contain a high proportion of investment funds that promote social and ecological criteria (“light green” financial products according to Art. 8 SFDR) or invest in companies and projects with a sustainable investment objective (“dark green” financial products according to Art. 9 SFDR).

Voting and engagement are also suitable for pursuing our sustainability goals in the asset management of our own funds. With the support of the Institutional Shareholder Services (ISS), we have clearly positioned ourselves in equity funds. For voting analysis and decisions, we use the SRI assessment methodology from the ISS. In asset management and with our funds, we also follow the recommendations of the UN Principles for Responsible Investment.

In line with the requirements of the SFDR, we regularly review our investments for indicators of adverse sustainability impacts (Principal Adverse Impact Indicators, PAI). This also includes GHG emissions caused by our investments. By doing so, we continue to have a precise overview of the impact of our investment decisions and fulfil our due diligence obligations in the area of sustainability.

The details on our approach to responsible investment are set out in the Group directive on investment advice and asset management. In addition, this information can be found in every investment proposal or asset management agreement. The responsible investment approach outlines the specific ESG management tools for the respective mandate; LLB Asset Management is responsible for this.

3.3.1 Impact-oriented funds and “ESG+” mandates

Since 2022, our range of funds has included attractive investment funds with climate-focused characteristics. The following two funds represent an extremely effective tool for clients to make their portfolio more climate-friendly:

• Investment fund “iNdx Equities Global Paris Aligned”: LLB has launched a Liechtenstein-domiciled, globally investing impact equity fund (Art. 9 SFDR). The objective of the fund is to replicate the MSCI World Climate Paris Aligned Net US Index. The index and fund are designed to overweight companies that are on a credible path to decarbonisation or those that offer sustainable solutions.
• A second solution is the impact-oriented bond fund LLB Green Bonds Global as classified under Art. 9 SFDR, which is dedicated to the global bond market segment of green bonds. It allows investors to employ their capital in a targeted way for climate change mitigation measures. Currently, one third of the bond issuers are financing renewable energy projects, followed by climate-friendly mobility and energy efficiency projects.

We have also implemented more sustainable and climate-friendly practices in the past few years in asset management. The mandates take ESG criteria into account. Furthermore, an overall minimum ESG performance as defined in the LLB sustainability approach is ensured. For example, our own investment instruments do not make investments in companies with ESG ratings lower than “BBB” and companies involved in severe controversies are excluded entirely.

In addition, with the LLB mandate “ESG+” we offer an investment solution that can help bring about a more substantial and measurable impact: At least 45 per cent of the investments is allocated to Art. 9-compliant products in accordance with the EU Sustainable Finance Disclosure Regulation, while the rest is broadly diversified and invested to achieve the minimum ESG performance.

3.3.2 Investment advice and private label funds

The majority of our managed assets consist of assets in which our clients have invested as part of investment advisory mandates. In contrast to our fund products and asset management mandates, the investment decision here rests solely with our clients, which is why our scope for action is correspondingly limited. Nevertheless, we continue to fulfil our responsibility by offering investment advice mandates with varying levels of focus on sustainability. However, in line with common industry practice, these mandates are not currently part of our net zero target.

Our influence on private label funds is even smaller. These are purely execution transactions that we carry out on behalf of external asset managers. The decision regarding investment policy is made by our clients, who act on behalf of their customers. We recognise that we also have an impact on the environment and society through these services. However, because we do not participate in investment decisions, we have excluded private label funds from our general objectives and have not as of yet defined a strategy for GHG reduction.

3.4 Policies relating to loans

In the area of loans, we focus on real estate and mortgages. In Liechtenstein, we have a leading position in the mortgage lending business with a market share of around 50 per cent. Mortgages also play a decisive role in LLB Schweiz. With tailored financing products and services, we specifically support sustainable construction and energy-efficient renovations.

In order to reduce GHG emissions in the area of loans, we ensure the consistent implementation of our loans concept that we adopted in 2024. Its focus is on mortgage financing, which accounts for around 90 per cent of our loan portfolio. This makes them the most effective lever for controlling our financed emissions when it comes to lending. Three fields of action are crucial for achieving the ACT-26 goals:

• Improving the data basis: We want to close existing data gaps and replace estimates with actual values, thereby optimising the data quality for the GHG calculation. To this end, we are in regular contact with our clients, relevant trade and industry associations, policymakers and other companies. We also established a digital process in e-banking during the reporting year that collects the required ESG information and evidence from our new and existing clients.
• Reduction of stranded assets in the portfolio: In this context, we understand stranded assets to mean the financing of real estate that has high GHG emissions and could therefore lose market value in the future. Various measures and initiatives aim to convince our clients of the potential of energy-efficient renovations, thereby reducing the greenhouse gas emissions of our loan portfolio. Against this background, we have trained our client advisors on the topics of sustainable construction and energy-efficient renovations, revised our product portfolio and launched a CO₂ and renovation calculator. In the reporting year, together with the Principality of Liechtenstein we made preparations for the launch of the “0%-Energiehypothek” (0 per cent energy mortgage), which has been providing a targeted incentive for energy-efficient renovations since early 2026.
• Avoiding stranded assets in new business: We also want to avoid GHG-intensive real estate projects in new business wherever possible. In particular, the training courses for client advisors help us to identify critical assets in a timely manner and motivate clients to implement GHG-reducing measures. Our environmentally friendly mortgage product, for example, establishes monetary incentives in the form of attractive financing terms for energy-efficient real estate projects.

All of these fields of action are particularly relevant for our target markets of Liechtenstein and Switzerland. In addition, the loan policy also defines a field of action for Lombard loans. Lombard loans and classic commercial loans are excluded from the calculation of financed emissions.

The Group “Credit risk management” regulation stipulates that we must exclude business relationships that contravene laws, are in breach of moral or ethical principles, may harm the reputation of the LLB Group or can be used to circumvent the law. The Group Risk Management organisational unit is responsible for the content.

3.4.1 Sustainable financing solutions

We also pursue our GHG reduction targets in our lending activities with the help of innovative product solutions. These include our environmentally friendly mortgage product, which specifically promotes CO₂-efficient construction. If a new building meets the highest energy standards (GEAK Class A or B, Energy Certificate FL Class A or B, Minergie label) or if an energy-efficient renovation of an existing property is to be financed, clients receive an interest rate discount. In 2024, we improved our engagement through the launch of a CO₂ and renovation calculator, the first of its kind for the Liechtenstein market. Through this tool, we offer easier access to information about energy-efficient renovations and current funding programmes.

In the reporting year, we also concluded preparations for the new “0%-Energiehypothek” (0 per cent energy mortgage), which launched in early 2026. This financing solution will enable us to support energy-efficient renovations projects in Liechtenstein in future – see section Measures relating to loans.

In 2024, all client advisors in Liechtenstein and Switzerland received comprehensive training on energy-efficient renovations to build in-depth knowledge about sustainability, climate goals and CO₂ reductions. This enables them to raise awareness among our clients about sustainable construction and energy-efficient renovations and to provide professional information about funding and the impact on the market value and rental price of the property. The training remains available to all colleagues.

4 Measures relating to climate change policies

We have adopted a series of measures to manage our GHG emissions and reduce them in the medium to long term. For information on the funds spent for the measures mentioned, see section Expenses for the transition plan.

4.1 Measures in banking operations

During the reporting year, planned or implemented projects relating to banking operations and relevant decarbonisation levers include:

• Energy efficiency: During the reporting year, we were able to complete construction of our new building named Haus Giessen, which is “LEED Gold” and “Minergie P Eco” certified. The new building will be occupied and less energy-efficient existing properties will be vacated starting at the beginning of 2026. We expect a slight increase in energy efficiency as a result of the move to the new building.
• Electrification of the LLB fleet: The transition of the LLB vehicle fleet to electric vehicles was continued in the reporting year. All vehicles across the Group are replaced at the end of their lifecycles.
• Resource efficiency: We piloted a recycling concept in the reporting year and will roll this out across the Group.
• Low-emission mobility: Our “Mobility Management 2.0” programme, focusing on Liechtenstein, was consistently implemented during the reporting year.

For the year 2025, market-based GHG emissions from banking operations amounted to 3ʼ896 t CO_2e (2024: 4ʼ206 t CO_2e) and were therefore 7.4 per cent lower than in the previous year and 17.0 per cent lower than the figure for the baseline year 2019 (4ʼ694 t CO_2e). Reductions in our GHG emissions can be traced back to the above-mentioned measures and external influencing factors, such as our employees making the switch to electric vehicles and measures relating to business travel.

Across the Group, an average of 2.90 t of CO_2e was generated per employee (FTE) in the reporting year (2024: 3.11 t CO_2e, market-based). This corresponds to a relative decrease of 6.8 per cent. Compared to the baseline year 2019 (4.01 t CO_2e), we were able to achieve a reduction of 27.7 per cent. These calculations have taken into account the integration of the former ZKB Österreich for the years 2019 and 2025. The year-on-year trend was determined using the figures for 2019.

We assume that the withdrawal from the United Arab Emirates will have a positive impact on our operational GHG emissions from 2026 onwards. This is primarily attributable to the expected reduction of long-haul flights and overnight hotel stays as well as the associated phase-out of conventional electricity. Beyond the measures mentioned, as of 2025 the potential for savings within banking operations are largely expended, to the extent that we do not anticipate any comparable reduction in emissions over the coming years.

4.2 Measures relating to own investments, asset management and fund products

The decarbonisation of our own investments also consistently continued during the reporting year. After the announced almost complete withdrawal from companies operating in the fossil fuel sector was concluded in 2024 according to plan, in 2025 we concentrated on the further optimisation of our portfolio: We identified the greatest GHG emitters and subjected these to a comprehensive re-assessment. We will continue to carefully monitor the GHG emissions from our own investments in future and will review further options for optimisation. Nevertheless, the greatest levers in our view have already been implemented, meaning we do not anticipate any comparable reduction in emissions over the coming years through targeted individual measures on our part.

This reporting year saw us continue to monitor our GHG emissions in asset management and from fund products and implement the necessary asset allocation adjustments. Through these measures and the progress made by our issuers, GHG emissions from our own investments, asset management and from our fund products have fallen by 151ʼ830 t CO_2e or 14.5 per cent compared with the previous year (2024: 1.05 million t CO_2e). GHG emissions intensity was reduced by 20 t CO_2e per CHF 1 million invested compared with the previous year (2024: 78 t CO_2e per CHF 1 million investment) and by 41 per cent compared with our baseline year (2019: 99 t CO_2e per CHF 1 million invested). These calculations have taken into account the integration of the former ZKB Österreich for the years 2019 and 2025. The year-on-year trend was determined using the figures for 2019.

We will develop further reduction measures for the new strategy period in 2026. At the present time, it is difficult to predict future GHG savings that can be expected due to ever-changing trends: Unlike other investment classes, with regard to our fund products and our asset management activities we are heavily dependent on social and political frameworks and on client interest in sustainable financial solutions.

4.3 Measures relating to loans

In early 2026, working in close collaboration with the Principality of Liechtenstein, LLB launched the “0%-Energiehypothek” (0 per cent energy mortgage). This zero-interest financing solution will support green renovations of properties in Liechtenstein. LLB bear the administrative and risk costs, while the Principality assumes the refinancing costs. As a result, neither interest nor fees are accrued by clients. Green renovations are promoted pursuant to Art. 3 of the Energieeffizienzgesetz (EEG) (Liechtenstein Energy Efficiency Act (EEG)). Examples of these renovations include the replacement of oil and gas heating systems, the improvement of thermal insulation and the installation of photovoltaic systems.

During the reporting year, we implemented and successfully piloted a specially developed digital application process for collecting information. This enables our new and existing clients to provide ESG information and evidence as part of a loan application in a simple and user-friendly way within the e-banking environment. The solution creates a client-friendly hub for collecting ESG information, serves as a foundation for value-added services and increases transparency with regard to financed GHG emissions.

The financed GHG emissions in our mortgage portfolio for 2025 totalled 88ʼ407 t CO_2e (2024: 101ʼ304 t CO_2e). Compared with the previous year, this represents a decrease of 12.7 per cent, which can be attributed to an improved data basis in particular. The comparison is difficult because data availability and quality have changed and improved significantly in recent years. In the future, we will review whether we should redetermine the 2019 baseline year due to changing conditions regarding data availability and quality.

5 Targets relating to climate change mitigation

To minimise negative impacts related to climate change, the LLB Group has set itself the goal of reducing its greenhouse gas emissions to net zero by 2040. While pursuing this goal, we will disclose both absolute and relative GHG reduction targets for greater transparency. Relative reduction targets refer for example to emission figures relative to invested assets or per employee. These targets mean we can assess our progress on the journey to net zero while taking into account corporate growth. Unless indicated otherwise, target attainment is measured in tonnes of CO₂ equivalents (t CO_2e).

The GHG reduction shall be implemented in stages; 2019 serves as the baseline year for all measures:

• By 2026, the aim is to reduce GHG emissions from our own investments and banking products (mortgage-backed loans, LLB funds, asset management mandates) by around 30 per cent.
• In banking operations, this reduction should be 20 per cent by 2026. This target applies to all LLB Group locations.
• By 2030, we aim to reduce our GHG emissions by 55 per cent across the Group. This figure includes banking operations, our own investments and our banking products.

These interim targets concern both absolute and relative developments in GHG emissions. Our targets cover the following Scopes as defined in the Greenhouse Gas Protocol (GHG Protocol) and are therefore consistent with the limitations of our greenhouse gas inventory – see section Limitations of the GHG calculations:

• Scope 1: includes all emissions caused directly by combustion (e.g. company vehicles).
• Scope 2: includes emissions caused by purchased energy (e.g. electricity, heating).
• Scopes 3.1 to 3.7 and 3.15: includes emissions caused by purchased inputs, third-party services or own products and services.

Achieving the defined target depends heavily on supportive social and political frameworks. Regulatory requirements, funding mechanisms, technological innovations and the acceptance of sustainable financial products are crucial external success factors, yet simultaneously also sources of potential uncertainty for our transition plan.

5.1 Target definition

Our targets are science based and consistent with limiting global warming to 1.5 °C. We are committed to achieving net zero emissions by 2040, which has been identified in the guidelines of the Intergovernmental Panel on Climate Change (IPCC) as the critical threshold for achieving the 1.5 degree target. The IPCC scenarios clearly show that an early and sustained reduction of greenhouse gases is crucial to avoid excess emissions. A net zero in 2040 therefore has a significantly higher probability of limiting global warming to 1.5 °C than a net zero in 2050.

Furthermore, we are guided by the EU climate targets, in particular the European Green Deal, which calls for a reduction in GHG emissions of at least 55 per cent by 2030. We also support Liechtenstein’s national climate goals. As our main shareholder, the Principality of Liechtenstein has enshrined net zero by 2040 in the “Participation Strategy of the Government of the Principality of Liechtenstein for the Participation in Liechtensteinische Landesbank AG”.

We have defined our reduction targets based on the assumption of an orderly transition to a sustainable economic model in line with the 1.5-degree target outlined in the Paris Agreement. We have not derived our targets from a sector-specific decarbonisation pathway for companies we finance or invest in. We are also not pursuing a sector-specific emission reduction pathway with regard to our mortgage portfolio.

5.2 Information on the baseline year

We have set 2019 as the baseline year for all reduction targets. The baseline year was chosen as this was the last full year before the COVID-19 pandemic and it is therefore the most representative year for our strategy period. The years 2020 and 2021, which were marked by lockdowns, would provide a highly distorted picture as a basis for comparison.

In the reporting year, we retroactively adjusted the figures for the baseline year 2019 and the reference year 2024. This is because of the integration of the former ZKB Österreich in the LLB Group at the beginning of 2025. According to the GHG Protocol, the baseline year and other reference years must be recalculated if there are material structural changes within the reporting organisation, as structural changes “merely transfer emissions from one company to another without any change of emissions released to the atmosphere” (The Greenhouse Gas Protocol, Revised Edition 2015, p. 37). The Protocol cites company acquisitions and disposals as examples.

ZKB Österreich’s operational and financed GHG emissions in the baseline year of 2019 are for the most part based on actual data. In cases where information was unavailable in banking operations, estimates based on plausible assumptions were made by the myclimate foundation. No data on banking operations or the investment portfolio is available for 2024 and so we have used the figures from 2019.

Furthermore, in the reporting year we took into account GHG emissions arising from government bonds and third-party funds for the first time when calculating our financed GHG emissions. In doing so, we have followed the standard issued by the Partnership for Carbon Accounting Financials (PCAF). Changes to the baseline year and reference year can be found in the tables below.

Adjustment of the baseline year

Adjustment to the reference figure for 2024

5.3 Expected decarbonisation levers

We have identified multiple decarbonisation levers that are helping us achieve our GHG emissions reduction targets. These decarbonisation levers concern both banking operations and financed emissions. As a financial services provider, our focus is less on new technologies, but on developing our product and service portfolio in accordance with the expectations of our clients.

LLB Group decarbonisation levers

The most important levers and their expected contribution to achieving our targets are shown in the table above. Climate scenarios were not considered when defining the levers; instead, we based this process on operationally feasible measures with a direct influence on our emissions balance. Emissions are recorded according to the GHG Protocol (Scopes 1, 2, 3.1–3.7 and 3.15); Scopes 3.8–3.14 are not considered material. The quantification of potential for savings is based on assumptions; this process is reviewed at least once a year. We estimate that the expected overall contribution of the decarbonisation levers identified will be a percentage in the mid-single digits by the end of our current strategy period 2026.

With regard to the decarbonisation levers, we are not currently making use of any nature-based solutions as defined in the ESRS. Such approaches are less suitable for our bank, as the main sources of our own emissions are energy-related consumption, mobility and procured services. These are primarily reduced through technological and operational measures to increase efficiency. As well as this, the bank does not own any premises or operate any activities of note in ecosystems in which nature-based solutions could be meaningfully implemented. For this reason, we focus on those decarbonisation levers which lie within our direct area of influence and which enable measurable reductions in emissions. Notwithstanding this, we support reforestation and rewilding projects – see section Climate-protection financing activities for remaining greenhouse gas emissions. These contribute to the long-term sequestration of greenhouse gases, the strengthening of ecological systems and the promotion of biodiversity, but are not recognised as reducing the operational emissions balance.

6 Key figures relating to climate change mitigation

6.1 Energy consumption and energy mix

In the reporting year, the total energy consumption for the LLB Group was 5ʼ218 MWh (2024: 4ʼ948 MWh). This represents an increase of around 5.4 per cent on the previous year. However, the relative share of fossil fuel energy was reduced by 5.9 per cent. As no comparative figures are available for the former ZKB Österreich for the previous year, the key figures for 2024 were taken from the year 2019.

Energy consumption and energy mix

The majority of the LLB Group’s energy consumption is covered by renewable energy sources. A residual amount is attributable to a conventional heating system in a small building in Liechtenstein and our two locations in the United Arab Emirates (UAE). The opening of Haus Giessen will allow us to vacate the property in Liechtenstein in 2026; we will also withdraw from the UAE in 2026. As a result of the acquisition of the former ZKB Österreich, up until 3 May 2025 our property portfolio also included a building which was still supplied with conventional electricity and gas. During the reporting year, the LLB Group’s photovoltaic systems generated 228 MWh of renewable energy.

6.2 Greenhouse gas emissions

6.2.1 Limitations of the GHG calculations

We calculate our GHG emissions in accordance with recognised standards and report them accordingly; the framework for this is provided by the Greenhouse Gas Protocol (GHG Protocol). The Scopes taken into account are those that are directly related to our banking activities and indirectly related to our value chain: Scopes 1, 2, 3.1 to 3.7 and 3.15. The Scope 3 categories (3.1 to 3.7 as well as 3.15) relevant for the LLB Group are: purchased goods and services; capital goods; fuel- and energy-related activities; upstream transportation and distribution; waste generated in operations; business travel; employee commuting and investments.

We consider Scope categories 3.8 to 3.14 to be immaterial for the following reasons:

• Upstream leased assets (Scope 3.8): Emissions from rented fixed assets, plant and equipment, such as office buildings, are already included in the LLB Group’s Scope 1 and Scope 2 emissions. Therefore, emissions from energy consumption and those directly generated by these buildings are already recorded.
• Downstream transportation and distribution (Scope 3.9): As a bank, the LLB Group neither produces nor sells physical products. Therefore, there are no relevant transport or distribution processes that could cause emissions.
• Processing of sold products (Scope 3.10): Since the LLB Group does not manufacture physical products, there is no downstream processing by third parties that could cause emissions.
• Use of sold products (Scope 3.11): The LLB Group does not produce any physical products that could be used. Therefore, no emissions are generated by the use of such products.
• End-of-life treatment of sold products (Scope 3.12): Since the LLB Group does not manufacture physical products, there are no products that need to be disposed of or treated at the end of their useful life. Therefore, this Scope does not apply.
• Downstream leased assets (Scope 3.13): The leasing of property, plant and equipment does not form part of the core business of the LLB Group. There are therefore no relevant emissions or leasing processes that would have to be taken into account.
• Franchises (Scope 3.14): The LLB Group does not operate any franchise companies. There are therefore no relevant emissions that would have to be taken into account.

Scope 3.15 (Investments) is of particular importance for banks. For the LLB Group, this concerns those emissions caused by the bank’s own investments and banking products (mortgage-backed loans, LLB’s own funds, asset management mandates).

6.2.2 Calculation methodology

6.2.2.1 Banking operations

We calculate the annual GHG emissions produced by our banking operations (Scopes 1, 2 and 3.1 to 3.7) in the first quarter of the following year. We first collect the underlying raw data (electricity consumption in kWh, kilometres driven for commuting, flight distances for business trips, paper consumption in kg etc.) in the EcoCloud external GHG accounting tool of the myclimate foundation and document the data source. The quality of the raw data is indicated as “exact”, “calculated” or “estimated”.

Our GHG emissions are reported in CO₂ equivalents (CO_2e). The conversion based on defined emission factors is carried out externally by the myclimate foundation. To do this, it first checks the plausibility of the raw data and models missing data by using values from the previous year, from comparable locations, from studies or from myclimate models as well as benchmarks. The greenhouse gasses CO₂ (carbon dioxide), CH₄ (methane), N₂O (nitrous oxide), HFCs (hydrofluorocarbons), PFCs (perfluorocarbons), SF₆ (sulphur hexafluoride) and NF₃ (nitrogen trifluoride) are taken into account for the calculation. The emission factors used by myclimate refer to the Global Warming Potential (GWP100), which calculates the climate impact of greenhouse gases over a period of 100 years. By definition, CO₂ has a GWP of 1. The climate impact of other gases is expressed in relation to CO₂, based on their effect and atmospheric lifetime. The results are then reviewed and validated by our experts.

The GHG calculation for the reporting year included all locations in Liechtenstein, Switzerland, Austria, Germany and the United Arab Emirates. Where possible, we use primary data. For reasons of efficiency or due to a lack of data availability, this is not always feasible, which is why we make estimates or extrapolations in such cases. Our GHG emissions are reported using both a location-based and a market-based approach. Location-related Scope 2 emissions are based on the average emission factors of energy generation at specific locations. Market-related Scope 2 emissions are calculated on the basis of the electricity mix actually purchased by the LLB Group. Data quality, calculation logic and degree of automation are continuously improved.

6.2.2.2 Own investments, own fund products and asset management

When calculating financed GHG emissions (Scope 3.15) in our own investments, asset management and LLB funds, we apply the standard of the Partnership for Carbon Accounting Financials (PCAF). The basis for this is our ESG database solution, which is primarily based on information from the external data provider MSCI. Both reported and estimated GHG values of our counterparties are included in the calculations. In order to ensure a comprehensive and valid picture of our GHG situation, we also use additional adjustment procedures. For example, extreme outliers are corrected, missing individual figures are supplemented with the most recently available figures, data is inherited along the corporate hierarchy or, if no data exists, completed using current industry benchmarks.

Listed stocks and corporate bonds are included in the calculation because reliable and comparable GHG emissions data is available for these asset classes due to existing reporting requirements and established standards. The calculations refer to the Scope 1 and Scope 2 emissions primarily relevant for portfolio management. Government bonds and third-party funds have been taken into account for the first time this year. In the case of green bonds, the project-related GHG emissions are used. If information on these is not available, the company’s CO₂ value is used. The former holdings of ZKB Österreich are included for the current reporting year and the reference year 2019, while the change analysis compared to the previous year uses the portfolio values from the reference year, which account for around 5 per cent of the relevant total volume.

By using the procedure described, we increase data availability and ensure high data quality. Since our external data provider and the institutionalised data cleaning procedures of the ESG database cannot provide all CO₂ values, we have estimated the missing values using the average values of our portfolio. This enabled us to ensure that 100 per cent of the gross book values were covered. We continue to work on optimising the coverage of our data.

For the GHG calculation in our own investments, we consider financial assets within the framework of Asset Liability Management (ALM) as well as strategic investments. The positions of the trading book are excluded, as it is immaterial for us due to the very low volume. Furthermore, we consider all asset management mandates, LLB funds and the willbe digital wealth management service. Advisory/investment advice mandates, execution based on client orders (execution only) and private label funds are excluded.

6.2.2.3 Loans

The GHG emissions of the mortgage portfolio (Scope 3.15) are calculated once a year in accordance with the Partnership for Carbon Accounting Financials (PCAF) standard. First, the necessary raw data on the properties is collected and processed from internal systems, where available. This data includes basic information about the buildings (e.g. floor area, type of heating). After we have internally validated and anonymised the raw data, we forward it to the real estate specialist Wüest Partner AG. There, the data is supplemented with the additional information necessary to determine GHG emissions.

The calculations are based on standardised methods, which take into account energy consumption for heating, hot water and electricity, among other things. These methods are based on recognised principles, in particular the standard SIA 380/1:2016 “Heating demand” (December 2016) and the information sheet SIA 2024 “Space utilisation data for energy and building technology” (October 2015). The GHG emissions for each property and for the entire portfolio are determined on this basis. After our experts have verified the data, it is prepared for internal and external reporting. This approach enables a clear and reliable assessment of the GHG emissions of our mortgage portfolio.

6.2.3 Change in GHG emissions

For the year 2025, the LLB Group’s total market-related GHG emissions amounted to 990ʼ964 t CO_2e (2024: 1.16 million t CO_2e). This means we can report an absolute reduction of 20.6 per cent compared to the baseline year 2019; compared to the previous year, the decrease is 14.3 per cent. As expected from a bank, our investments (Scope 3.15) account for the majority of our total GHG emissions (more than 99 %). The relevant investments have grown by around 37 per cent since 2019. Even with this pleasing growth, absolute GHG emissions have been reduced compared with the reference year.

In 2025, we procured 92.9 per cent of our electricity via contracts with energy attributes such as certificates of origin and green tariffs, while 7.1 per cent came from non-certified residual mix. Biogenic emissions are not currently recorded separately, as they are not material in terms of our own operations and within upstream emissions and are not available for the emissions category 3.15 on account of the current data situation.

GHG emissions of the LLB Group

We also succeeded in reducing the measure GHG intensity as compared to net profit. Based on this key figure, the LLB Group emitted around 13.6 per cent less GHG per CHF 1 million of net profit generated in the 2025 reporting year than in 2024 (see table below). The relevant items for calculating the net income can be found in the Consolidated income statement of the LLB Group.

GHG emissions intensity in relation to net profit

6.3 Climate-protection financing activities for remaining greenhouse gas emissions

As part of our net zero target, we are striving to achieve a reduction in our GHG emissions of 90 to 95 per cent by 2040. In this regard, we are especially dependent on social and political parameters (e.g. the advancing decarbonisation of our counterparties, increasing acceptance of sustainable product ranges).

Thus far we have been assuming responsibility for the GHG emissions arising from our banking operations by acquiring and retiring CO₂ certificates in accordance with internationally recognised standards (e.g. Plan Vivo, VER). The projects are implemented and regularly audited (including by SGS and chartered accountants) by the charitable organisation myclimate. As part of these climate‑protection financing activities, we support climate change mitigation projects outside of our value chain:

• A pioneering programme that stores carbon in arable soils to combat soil erosion and humus depletion. With humus-building measures, organic farmers are contributing to a more climate-friendly agriculture.
• A project that promotes sustainable land use through reforestation and appropriate management of existing forests, which increases carbon absorption and strengthens biodiversity.
• A reforestation project that involves small farming families working together to reforest unused land and improve the quality of life of the population.

These measures are part of a continuous learning and development process which focuses on scientific standards and current industry standards.

Retired CO₂ credits

In 2025, 1ʼ598 t CO_2e were removed. In line with industry practice, the certificates are permanently retired once a year as soon as they become available in the relevant register. This process is also documented. The certificates are cancelled and cannot be traded again, guaranteeing the one-time effect of the climate change mitigation effect. In addition, the retirement of the certificates and fulfilment of customer promises is audited by the international goods testing agency SGS. The certificates contribute to sustainable development and climate change mitigation. The reduction or removal of greenhouse gas emissions through climate change mitigation projects is disclosed in line with Plan Vivo methodologies. In one region, there is also a strong alignment with the “Gold Standard SOC Framework”.

We have not included the aforementioned CO₂ certificates in the calculation of our GHG emissions, meaning they have no reducing effect on the reported GHG footprint of the LLB Group. Instead, in accordance with legal requirements, we only report our gross GHG emissions.

6.4 Internal CO₂ pricing

The LLB Group does not use an internal CO₂ pricing system.

6.5 Financial impacts of climate-related risks and opportunities

We are making use of the transition periods for ESRS E1-9 and ESRS 2 SMB-3. As part of an ongoing project to professionalise our ESG risk management process, we ensure continual development in order to strengthen the resilience of the LLB Group in accordance with the current standards. The Group Risk Management department is responsible for implementing the project.

6.6 Additional disclosure according to the Partnership for Carbon Accounting Financials (PCAF)

The following tables provide detailed information on the development of our financed GHG emissions. They follow the standard of the Partnership for Carbon Accounting Financials (PCAF).

The table below illustrates the development of our GHG emissions arising from our own investments, asset management and LLB’s own fund products. Unlike ESRS disclosures, here we also take into account the Scope 3 emissions of our counterparties. The coverage ratio provides transparent information about the proportion of assets for which we have emissions data.

GHG emissions in own investments, in asset management and own fund products

The table below shows the development of our GHG emissions in the mortgage portfolio. As well as absolute GHG emissions, a favourable trend can also be observed with relative GHG emissions. Our average data quality score according to the PCAF standard is 4.2 (2024: 4.2).

GHG emissions in the mortgage portfolio

The table below shows the distribution of financed GHG emissions by investment class. Investments in listed equity and debt capital therefore make up the majority of the financed emissions. With regard to the Scope 1 and Scope 2 emissions of our counterparties, a decrease is noticeable compared to the previous year. When additionally taking the corresponding Scope 3 emissions into consideration, an increase is noted.

GHG emissions by asset class

PCAF recommends maximum transparency possible regarding the exposure of financial institutions to GHG-intensive sectors. To meet this requirement for our investments (own investments, asset management mandates and LLB funds), we are providing the information in the table below. With regard to these five GHG-intensive sectors, cement production generates the greatest amount of absolute GHG emissions for Scope 1 and Scope 2 within the LLB Group.

GHG emissions by sector