Relevance of the topic to SZKB and objectives

SZKB is guided by its spirit & purpose, which is focused on intergenerational thinking and actions. As an institution with strong roots in the region, SZKB knows the needs and challenges of the people of the Canton of Schwyz at the various stages of their lives. On this basis, it is committed to local activities and engages in responsible and sustainable business conduct. The ownership of SZKB by the Canton, which means it is 100% owned by the people of Schwyz, also plays a role in this.

As a bank rooted in the region, SZKB has a wide range of interactions with its local environment. There is potential for both positive and negative impacts. In accordance with Section 3(2) of the Schwyzer Kantonalbank Act, SZKB must contribute to the balanced and sustainable development of the Canton of Schwyz, taking the needs of the general public, the economy and the public sector into account in particular. Opportunities and risks relating to business conduct vis-à-vis the local environment can be divided into an inside-out perspective and an outside-in perspective:

• Inside-out – the impact of SZKB on the local environment: Through its commitment to culture, society, sport and the environment, SZKB strengthens social cohesion and promotes vibrant regional development. This supports the preservation of local traditions, motivates voluntary commitments and bolsters trust in the Bank as a responsible partner. Nevertheless, this commitment entails some risks. The possibility of associations or institutions becoming dependent on funding can lead to challenges over the long term, especially if funds need to be reduced or prioritised. In addition, negative impacts could arise as a result of supporting initiatives or projects that are subsequently considered to be controversial or do not meet the expectations of the general public and lead to reputational risk.
• Outside-in – the impact of the local environment on SZKB: SZKB influences the local environment through social, economic and regulatory developments. Rising expectations in terms of social and environmental engagement by financial institutions are increasing pressure to take more comprehensive and visible action. At the same time, economic challenges in the region, such as an increase in unemployment or business closures, can increase demand for support services and also raise the financial burden on the Bank. Regulatory requirements relating to sustainability and the promotion of regional development can exert additional pressure, as can social debates that force the Bank to respond to new needs or criticisms.

Key topics from SZKB’s sustainability strategy in the area of responsible corporate behaviour towards the local environment are «Generations and local commitment» and «Fostering the local community and economy». SZKB has the following objectives in this regard:

• Local commitment (sponsorship) of at least CHF 0.8 million per year.
• Increase in the number of financial literacy events held

Management approach

Sponsorship
The Sales and Market Management department is tasked with evaluating and approving sponsorship requests. This department reports directly to the CEO. SZKB attaches great importance to promoting not so much major flagship projects but rather a large number of projects and events that offer added value to the general public and are consistent with its spirit and purpose. When making commitments, SZKB has clear rules on the allocation of decision-making authority; these specify which decisions regarding commitments can be made at which level or which particular approval process is required. Internal control mechanisms exist to ensure compliance with these regulations.

Memberships
To consolidate common interests, SZKB is involved in various organisations. The Bank is convinced that this will enable synergies to be exploited. SZKB’s involvement and membership in these organisations are aimed at expanding its network, enhancing its knowledge and expertise beyond the banking sector and establishing a presence in and committing to key institutions. SZKB has clearly defined rules on the allocation of decision-making authority, which stipulate at which level decisions on whether to join organisations can be made and which approval processes must be followed when doing so.

Financial literacy
The promotion of financial literacy is a core area of SZKB’s activities. It aims to expand the knowledge of the general public in the Canton of Schwyz concerning issues such as savings, financing, investing and pensions. In doing so, SZKB aims to help secure and enhance prosperity for future generations. As part of this mission, SZKB offers free events for its clients as well as presentations for the general public throughout the Canton.

Key measures

• Promoting the local environment through sponsorship
• Leveraging synergies through memberships
• Enhancing social engagement and fostering financial literacy

Promoting the local environment through sponsorship

SZKB has strong roots in the region and is actively committed to the Canton of Schwyz. As a sign of its practical proximity to the region, it supports a wide range of local and regional projects and events that make a lasting contribution to regional added value in the areas of culture, customs, society, economy, tourism, sport and nature.

Sponsorship grants of up to CHF 2,000 are provided, either as cash or in-kind (promotional material). When auditing sponsorship commitments of more than CHF 2,000, SZKB pays particular attention to their environmental, social and societal impacts.

SZKB promotes a wide range of sponsorship commitments but has defined clear exclusion criteria and does not make any contributions in the following cases:

• Events or projects outside the Canton of Schwyz
• National or international projects and events, as well as international projects
• Projects or events managed exclusively for commercial purposes
• Political or religious events
• Support for individuals (such as athletes and artists)
• Extreme sports or dangerous events
• Projects or events relating to motorsports
• Private events
• Book projects, work catalogues, commemorative
  publications
• Construction projects, renovations, refurbishments
• Image and sound storage media

Because of its significant presence in the Canton of Schwyz and its close proximity to clients, SZKB frequently receives requests for sponsorship and support contributions. In 2024, SZKB awarded a total of CHF 0.8 million in sponsorship grants. This support benefited local associations and institutions throughout the Canton. SZKB ensures transparency by posting sponsorship conditions, application forms and details of the contact person on its website.

Leveraging synergies through memberships

As a player in the economic environment of the Canton of Schwyz, SZKB works closely with partners from various areas. These cooperative relationships pool resources and expertise in order to actively address current developments throughout the region and the industry. Regular dialogue enables the Bank to identify relevant trends at an early stage and to work together with other stakeholders to develop sustainable solutions that benefit both the economy and society.

SZKB, or SZKB employees on its behalf, are members of the following organisations (annual membership fee of at least CHF 1,000):

• Arbeitgeberverband der Banken (Employer Association
  of Swiss Banks)
• Asset Management Association Switzerland (AMAS)
• Esisuisse
• fmpro Schweizerischer Verband für Facility Management und Maintenance (Swiss Association for Facility
  Management and Maintenance)
• Industrie- und Handelskammer Zentralschweiz IHZ (Chamber of Commerce and Industry of Central
  Switzerland)
• PCAF Partnership for Carbon Accounting Financials
• PPI Schweiz GmbH
• Schweiz. Bankiervereinigung/Swiss Banking
• Swiss GAAP FER
• Swiss Risk Association
• Swiss Sustainable Finance
• SwissDebitPay
• Venture Foundation
• Verein Unternehmens-Datenschutz (Association for Corporate Data Protection)

Enhancing social engagement and fostering financial literacy

SZKB promotes social engagement by its employees and allows one working day to be used each year for charitable activities, known as a "change of perspective". Employees actively support local organisations and associations on site. In 2024, 176 employees changed their perspectives on 133 days off, working on 33 different projects. Some projects relating to the upgrading of the Schwyz hiking trail had to be cancelled due to adverse weather conditions, which is why not all 196 registered employees were able to "change their perspectives". In addition, many SZKB employees work privately within associations or serve in political office. Any secondary employment is approved by the Executive Board in accordance with internal requirements.

In autumn 2024, SZKB launched the Clever@SZKB series of events aimed at the entire population of the Canton of Schwyz. The free introductory presentations deal with key financial topics such as digital transformation, asset accumulation, financing the purchase of a home, pension planning and inheritance planning. The aim is to answer questions that are often asked when seeking advice in a comprehensible and practical way. The plan is to make the programme an integral part of the SZKB event calendar in order to provide targeted support to various stakeholder groups. In 2024, eight events took place with a total of 387 participants.

Another important commitment is the support provided by the Schwyz Mentoring Programme, which was launched in 2022 in conjunction with partners such as the Women’s Network of the Canton of Schwyz, the SME Association Women Schwyz and the Schwyz University of Teacher Education. The programme enables mentors from a wide range of industries to provide assistance to young professionals in career planning, network management and work-life balance, as well as raising awareness of occupational pension issues.

With these initiatives, SZKB not only strengthens the social and economic fabric of the Canton of Schwyz, but also helps to foster education, equal opportunity and financial responsibility.

Assessment of effectiveness

In 2024, SZKB achieved the target objective for its engagement in the Canton of Schwyz by awarding total sponsorship worth CHF 0.8 million. This commitment helps to strengthen social life and cross-generational development in the Canton. SZKB has specified clear processes and criteria, including exclusion criteria, in order to make sure that the funds are used in a targeted manner. This ensures that sponsorship payments are distributed fairly in accordance with predefined criteria. Over the coming months, SZKB will examine whether sponsorship partners should be required in future to present a concept that demonstrates their awareness of their environmental, social and societal responsibility for commitments of CHF 10,000 or more.

SZKB pays particular attention to improving financial literacy in the region. With the rollout of the Clever@SZKB series of events, key financial topics are being brought to the attention of the general public. In 2024, SZKB reached 387 participants in a total of eight events, thus meeting the targets set. SZKB considers the measures taken to be appropriate and effective.

Further development and next steps

The Clever@SZKB series will continue in 2025 and the possibility of adding further topics to the event series in order to address and support the needs of various stakeholder groups in a more targeted manner.

The change of perspective will also continue in 2025. The number of partners and projects will be gradually expanded over the coming years.