Basis for preparation

General basis for preparation of the sustainability statement (BP-1)

This sustainability statement has been drawn up for VP Bank Group on a consolidated basis in accordance with the European Sustainability Reporting Standards (ESRS). The scope of the reporting entity corresponds to the scope of financial reporting by VP Bank Group and is presented in the chapter Consolidated annual report of VP Bank Group. In 2024, VP Bank withdrew from its Hong Kong location, which is therefore no longer included in 2025.

The scope of the reporting entity does not include the Data Info Services AG (DIS AG) 50:50 joint venture until its liquidation in November 2025 between VP Bank Ltd and Liechtensteinische Landesbank AG. DIS AG was established in May 2011 and operates solely as a procurement company for financial information without any further operational activity. Also not included in the scope of consolidation is the 40 per cent stake in Embla Fund Management AG and, as such, is treated the same way as other minority interests. There is no consolidation in accordance with CSRD.

In order to identify and report on material impacts, risks and opportunities, the Group’s own business activities and the upstream and downstream value chain are taken into account. Further information on the upstream and downstream value chain and their consideration in this sustainability statement can be found in chapter ESRS 2 SBM-1, and information on material impacts, risks and opportunities can be found in chapter ESRS 2 IRO-1. VP Bank is making use of the transitional provisions in some cases, as stated in Annex SN.1. Significant adjustments and changes compared with the previous year's report are summarised in Annex SN.8.

No information is provided on intellectual property, know-how or innovation results, although the relevance of the disclosures in question as a whole is not affected. There are no exceptions to the obligation to disclose impending developments or matters in the course of negotiation, in accordance with Art. 1096b to 1096i and Art. 1121(3a) et seqq. of the Liechtenstein Persons and Companies Act (Personen- und Gesellschafts­recht des Fürstentums Liechtenstein, PGR), within the meaning of Art. 29a of EU Directive 2013/34/EU.

Disclosures in relation to specific circumstances (BP-2)

Identification and assessment take into account the actual and/or potential impacts, risks and opportunities over different time horizons. The definition of these time horizons follows the approach of the general requirements under ESRS 1, according to which short-term is defined as less than one year (<1), medium-term as one to five years (1–5) and long-term as more than five years (>5).

In 2024, VP Bank conducted a comprehensive double materiality assessment (DMA) based on various data sources listed in chapter ESRS 2 IRO-1. In addition, data from the upstream and downstream value chains were used. Insofar as any forward-looking information is used in the analysis, it should be noted that this information is always subject to a degree of uncertainty and that the underlying estimates may change in the future.

The geographical and product-related distribution of the actual purchasing volume in CHF has been taken into account when assessing the upstream value chain within the DMA. This includes information on the share of procurement costs of tier 1 suppliers according to location, as well as a breakdown by purchasing category: information technology (IT), advisory services and human resources, information services, workplace, marketing and public relations (PR). The measurement uncertainty surrounding the upstream value chain is considered to be low, as the analysis is based on all relevant individual positions and does not use any estimates. Estimates are used in some cases in the context of GHG emissions under chapter E1-6, although the contribution to absolute group-wide GHG emissions must be classified as non-material.

When evaluating the downstream value chain within the context of the DMA, the analysis was broken down into two areas: (i) the lending business, with a focus on mortgage loans; and (ii) the investment business, with a focus on own investments and client assets in wealth management mandates. Due to the heterogeneous nature of the portfolio composition, estimates based on benchmarks were used in connection with client assets. The measurement uncertainty surrounding investments must be classified as moderate. In connection with the financed real estate in the mortgage portfolio, estimates for emissions were based on building types and location-specific information on natural hazards. Details on the sources for estimates and uncertainty of results are described in the respective topic-specific standards.

In the current financial year, VP Bank carried out the annual DMA review process for the first time. The aim is to review the timeliness of the results of the comprehensive DMA carried out in 2024, including the adequacy and completeness of the reported material IROs. Incompleteness in currently identified material IROs is generally caused by changes in internal and external circumstances. In workshops with internal stakeholders, VP Bank has examined whether any material internal and external circumstances have arisen since the last DMA/IRO review that would trigger a need for adjustment. The adequacy and completeness of the current DMA has been confirmed and the IROs already identified have been retained.

In addition to the reporting requirements under ESRS, this sustainability report also complies with the following reporting standards and frameworks: Principles for Responsible Banking (PRB), the UN Global Compact (UNGC) and the Task Force on Climate-related Financial Disclosures (TCFD). With the expansion of ESRS-based reporting requirements, the disclosure requirements under the above-mentioned standards have also been complied with.