Information unaudited Information ungeprüftEU Taxonomy

With the EU Taxonomy, the European Union (EU) has defined criteria for environmentally sustainable economic activities. Our key taxonomy figures provide information as to the extent to which our core assets are in line with the EU’s environmental objectives.

The EU Taxonomy sets out science-based criteria for classifying economic activities as environmentally sustainable. Economic activities that contribute to one of the EU’s environmental objectives and have no negative impact on any of the others are regarded as environmentally sustainable or taxonomy-aligned. The following six environmental objectives have been defined:

• climate change mitigation;
• climate change adaptation;
• sustainable use and protection of water and marine resources;
• transition to a circular economy;
• pollution prevention and control;
• protection and restoration of biodiversity and ecosystems.

An economic activity that is covered by the EU Taxonomy but does not satisfy all the relevant criteria should be classed as taxonomy-eligible. The 2025 disclosure is made in accordance with Delegated Regulation (EU) 2026/73, adopted as part of the EU Omnibus I package, which adapts the delegated regulations to the EU Taxonomy Regulation. In addition to the tabular presentation, in particular the Delegated Regulation alters the denominator of the key figures – for example, risk exposure to companies that are not subject to CSRD reporting requirements is no longer taken into account. For this reason, the comparability of the key figures with the previous year is limited.

1 Green asset ratio (GAR)

The core key figure for banks in relation to the EU Taxonomy is the green asset ratio (GAR). It indicates the proportion of those balance sheet assets that are associated with environmentally sustainable economic activities. These include the following: claims; bonds and equity instruments vis-á-vis financial and non-financial companies that are required to publish a sustainability statement in accordance with the CSRD; mortgage loans; building refurbishment and car loans to private households; loans to local public authorities (residential construction financing and other specialist financing) as well as other repossessed real estate collateral held for sale.

For the purposes of calculating the GAR, we analysed the relevant assets along the regulatory scope of consolidation in line with the regulatory requirements. This was done on the basis of the EU Taxonomy technical screening criteria and taking account of the data available. The data situation continues to be challenging in our home markets – especially with regard to our lending activities, which is why these assets could not be definitively assessed. In the case of bonds and equity instruments, we used information from an established external data provider.

1.1 Bonds and equity instruments

In order to determine the taxonomy key figures for bonds and equity instruments, we weighted the gross carrying amounts of the individual positions with the proportion of revenues and investment expenditure (CapEx) associated with environmentally sustainable economic activities and came up with a total. We adopted a look-through approach to the LLB funds. The LLB funds where only a portion of the position is held and where the amounts concerned are not material relative to the total volume were allocated to other assets without taxonomy values. A conservative approach to valuations was chosen for external funds, and the volumes were subsumed into other assets without being assessed (i.e. not assessed as being either taxonomy-eligible or taxonomy-aligned).

In the year under review, we have not yet been able to classify the bonds based on the allocation of proceeds. Our external data provider has reviewed the way in which relevant data points are collected but is currently unable to provide robust taxonomy-relevant performance indicators for these financial instruments due to insufficient disclosure by issuers and regulatory uncertainties. We are continually monitoring developments in this area.

Overview of Taxonomy KPIs

1.2 Loans and advances

In the year under review, we made progress in the area of loans and advances. The revised Energy Regulation, which came into force in Liechtenstein in mid-2025, introduced a mandatory new energy performance certificate. We therefore now have a supportive regulatory framework in our home market of Liechtenstein that will enable us to systematically collect information for assessing the taxonomy-alignment of our mortgage investments in the future.

In mid-2025, we started piloting a digital taxonomy solution for the markets of Liechtenstein and Switzerland: We contact our financing clients via the LLB mobile banking app or e-banking and ask them for information on the sustainability of the real estate they are financing. Clients reply to a series of simple multiple-choice questions and have the option to directly upload evidence. Upon successful completion of the pilot scheme, the tool will be extended to all financing clients in Liechtenstein and Switzerland in 2026.

Despite this progress, data availability remains the key challenge in the implementation of taxonomy as it relates to loans and advances: No evidence is yet available for the majority of financed real estate in Liechtenstein. In Switzerland, there is no nationwide obligation to issue GEAK (cantonal energy certificate for buildings), the Swiss equivalent of the energy performance certificate in the EU. Energy performance certificates are mandatory in Austria. The process of collecting information has also started there but so far no taxonomy-aligned loans have been identified.

As a result, we have reported our mortgage investments conservatively as having no value. We do not consider the financing of social housing to be a significant area of business and have therefore refrained from disclosing a corresponding key figure. In addition, as at the reporting date there are no claims due from financial and non-financial companies which are subject to compulsory disclosure. As at 31 December 2025, the LLB Group has three taxonomy-relevant properties in its portfolio that were acquired as a result of default or at auction. These properties are shown as taxonomy-eligible.

1.3 Trend and outlook

The proportion of taxonomy-aligned assets (across all activity classes) as at 31 December 2025, Group-wide in revenue-based terms, totalled 0.27 per cent (31.12.2024: 0.05 %) and 0.27 per cent in investment-related terms (31.12.2024: 0.06 %). We are continuing to work on obtaining a more complete and objective picture of our environmentally sustainable assets. To improve the situation, we are, among other things, continuing with an internal project that addresses the existing challenges and helps increase data quality. The chapter Detailed EU Taxonomy disclosure contains further details on taxonomy ratios.

2 Performance indicator for off-balance sheet exposures

The GAR exclusively includes balance sheet exposures. The Taxonomy Regulation envisages a separate performance indicator (key performance indicator, KPI) for off-balance sheet exposures (financial guarantees to companies and assets under management). It expresses the proportion of assets under management and financial guarantees associated with economic activities deemed to be environmentally sustainable under the EU Taxonomy in relation to the assets under management or financial guarantees.

The proportion of off-balance sheet exposures associated with economic activities deemed to be environmentally sustainable under the EU Taxonomy, as at 31 December 2025 and based on revenue, totalled 9.09 per cent (31.12.2024: 7.95 %) and in investment-related terms 14.45 per cent (31.12.2024: 13.02 %). This ratio is attributable to the assets under management (i.e. asset management mandates LLB Comfort and wiLLBe, including own funds within the LLB Group). Investment advisory mandates were not a focus in the reporting year

We took a similar approach to balance sheet exposures for the calculation and used an external data provider for bonds and equity instruments. In the case of external funds, it was technically impossible to differentiate between disclosure-relevant volumes in terms of the amounts involved. For this reason, we have not included the associated book values in the total volume. As at the reporting date we had no relevant financial guarantees (liabilities from credit guarantees, warranties and calls on shares and other equities). Further details can be found in the chapter Detailed EU Taxonomy disclosure.

3 Other assets

LLB Immo Kapitalanlagegesellschaft m.b.H, a subsidiary of Liechtensteinische Landesbank (Österreich) AG, places emphasis on the integration of sustainability criteria in the management of the real estate portfolio. Some of its funds have already been awarded the Austrian Ecolabel or have received a report from the Austrian Society for Environment and Technology. As at the reporting date, five real estate funds with a total volume of CHF 0.94 billion are under management (31.12.2024: CHF 1.08 billion). Real estate assets totalled around CHF 1.2 billion (31.12.2024: CHF 1.4 billion); of this, 99.23 per cent (31.12.2024: 99.35 %) were categorised as taxonomy-eligible and 62.97 per cent (31.12.2024: 25.25 %) as taxonomy-aligned.

We were supported with the classification by an established external service provider that specialises in the analysis and presentation of sustainable real estate data. As at the reporting date, the real estate volume of the LLB Semper Real Estate fund totalled CHF 726.9 million (31.12.2024: CHF 899.3 million), with 98.69 per cent (31.12.2024: 98.97 %) being classified as taxonomy-eligible and 58.95 per cent (31.12.2024: 13.26 %) as taxonomy-aligned. The LLB Group has invested around CHF 11.7 million (31.12.2024: CHF 13.7 million) in this mutual real estate fund via its financial investments. The position was allocated to other assets. The rise in the proportion of taxonomy-aligned assets can be attributed to a re-evaluation of existing assets in the reporting year.