Relevance of the topic to SZKB and objectives

SZKB’s commitment to sustainability also includes its own operational ecology. SZKB’s operations can have both a positive and a negative impact. Opportunities and risks relating to business conduct vis-à-vis the environment can be divided into an inside-out perspective and an outside-in perspective:

• Inside-out – the impact of SZKB on the environment: SZKB’s operations have a direct impact on the environment. The reduction of resource consumption, demand for environmentally and socially responsible products and services and support for biodiversity and the like can have an impact on the environment. SZKB focuses on reducing energy consumption and emissions associated with the operation of its own buildings as well as efforts to save resources. Measures such as the transition to renewable energy, the installation of photovoltaic systems (PV) and the removal of fossil heating systems underscore the Bank’s responsibility in this area.
• Outside-in – the impact of external environmental factors on SZKB: External factors such as rising energy prices, stricter regulatory requirements in terms of emission reductions or societal expectations in regard to sustainable business management have an impact on SZKB’s business activities. These developments increase the need to implement energy-efficient and resource-saving solutions but can also create incentives for innovation and long-term cost savings.

SZKB has set the following targets for the key topic of "energy consumption and efficiency (greenhouse gas emissions)" (for the climate targets, see section 5 of the Climate Report):

• Raising employee awareness of resource consumption (e.g. paper, heating, light and electricity).
• By 2030, all bank buildings (solely) owned by SZKB will cease using oil or gas systems, provided that it is economically feasible and technically viable to do so.
• By 2030, SZKB will have installed photovoltaic systems on all bank buildings (solely) owned by SZKB, provided that it is economically feasible and technically viable to do so.

Management approach

Even if the consumption of resources and the associated environmental impact at SZKB (as at all financial companies) is significantly lower than with undertakings such as industrial companies, operational sustainability management is still of great importance to SZKB. In order to avoid or reduce potential risks, SZKB pursues the following concepts:

Responsibility for the identification, analysis and implementation of measures is clearly defined internally and lies with the Real Estate/Services department as well as the Contract/Partner Management specialist unit.

Technical maintenance of buildings is carried out by an in-house team of specialists, with the support of external experts if necessary. SZKB raises employees’ awareness regarding the use of resources through intranet messages, campaigns in the in-house newspaper and so on.

In order to measure its CO₂ emissions, SZKB calculates its carbon footprint each year in accordance with ISO 14064-1 and the Greenhouse Gas Protocol for Scope 1 and Scope 2 as well as parts of Scope 3. SZKB identifies appropriate action from the knowledge gained from this process.

Key measures

• Cutting CO₂ emissions associated with heat consumption
• Reducing consumption of materials (papers, water, etc.) and waste
• Using electricity efficiently
• Avoiding refrigerant loss
• Sourcing sustainable and regional advertising material

Cutting CO₂ emissions associated with heat consumption

Emissions from heating systems (including water heating) at the headquarters and in the branches account for 110.2 tCO₂ (previous year 116.7 tCO₂), accounting for 10.5% of total CO₂ emissions. This means that CO₂ emissions associated with heating have decreased by 5.6% (–6.5 tCO₂) compared to the previous year, and by 22.1% compared to the base year 2021.

In 2023, the proportion of heating energy generated mainly from renewable energy sources was 66.8% (previous year: 63.5%).

At the end of 2024, six branches out of the 13 under sole SZKB ownership were heated using fossil fuels (primary and/or secondary heating).

Reducing consumption of materials (papers, water, etc.) and waste

In recent years, SZKB has continuously reduced its paper and toner consumption. By default, clients receive transaction notifications as well as account and custody account statements as electronic documents. The figure below shows the downward trend in physical client output (with 2005 = 100% taken as a basis).

The volume by weight of paper and printed matter declined significantly by 32% in 2023 to 52.6 t (previous year 77.6 t). The corresponding CO₂ emissions were estimated at 47.4 t (previous year 81.3 t) or 4.5% of the total. The sharp decline can be attributed to a fall in the use of printed matter, as well as the systematic use of recycled paper instead of fresh fibre paper.

SZKB only uses 100% recycled paper for information and advertising material. SZKB also minimises environmental impacts for all print orders by offsetting the CO₂ emissions associated with printing and transportation. Only offsetting projects in Switzerland are supported. This cooperation takes place exclusively with printers in the Canton of Schwyz and, in exceptional cases, with printers elsewhere in Switzerland. SZKB collects, separates and disposes of numerous consumable materials, including paper, cardboard, plastics/films, IT equipment, PET bottles, coffee capsules and household rubbish.

SZKB primarily generates paper waste (documents and waste paper) and household waste. Compared to 2022, the quantity of waste generated by SZKB in 2023 increased by 57.4% from 17.7 t to 28.0 t. The primary reason for this was the cleanup of various material stores at the headquarters during the reporting year. This was also the reason for the sharp decline in the recycling rate to 44.2% (previous year 56.7%).

At 5,062 m³ in 2023, water consumption was slightly lower than in the previous year. However, as a new emission factor was applied, the CO₂ emissions calculated as a result of water consumption were reduced to 0.7 tCO₂ (previous year 2.2 tCO₂).

Using electricity efficiently

SZKB’s electricity consumption amounted to 2,283 MWh in 2023 (increase of 2.0% compared to the previous year). With 17.1 tCO₂ (increase of 28.6% compared to the previous year), this accounted for 1.6% of SZKB’s operational CO₂ emissions. This increase was largely due to an adjustment in emission factors for the provision of energy. The carbon footprint takes into account the power consumption of the actual Bank premises (headquarters and branches), the external computer centre and the 13 cashpoints located at third-party sites. A total of 96.6% (previous year 93.8%) of the almost 2,283 MWh of electricity comes from renewable energy sources. Due to rental agreements, the exact composition of the remaining 3.4% is not conclusively known.

Avoiding refrigerant loss

SZKB services its cooling equipment and air conditioning systems at least once each year. Nevertheless, defects are liable to occur unexpectedly, leading to a loss of refrigerant. In 2023, an SZKB air conditioning system lost 36 kg of R-134a refrigerant. As refrigerants are harmful to the climate, one kilogram of refrigerant R-134a has the effect of 1.43 tCO₂. In 2023, the CO₂ emissions reported in the carbon footprint amounted to 51.7 t (previous year: 25.5 t).

Sourcing sustainable and regional advertising material

When it comes to promotional items and giveaways, SZKB sees value and quality as extremely important. These are sourced exclusively from suppliers in Switzerland, with most of them coming from the Canton of Schwyz. Care is taken to ensure that the promotional items and gifts are manufactured in Switzerland or Europe. SZKB requires its suppliers to ensure that fair working conditions prevail during production and that resource-efficient materials are used. Where possible, SZKB works with institutions that offer employment opportunities to people with disabilities, such as the BSZ Foundation. SZKB also focuses on regional partners for its advertising campaigns: 98.5% of costs are paid in Switzerland, in particular in the Canton of Schwyz. The minimum foreign share (1.5%) is due exclusively to the use of international digital advertising platforms. The key figures on operational ecology are listed on the right.

Assessment of effectiveness

The following measures were implemented in 2024 to achieve targets:

• In September, the old gas heating system at the Lachen branch was decommissioned thanks to the connection to Fernwärmeverbund Ausserschwyz (District Heating Association of Outer Schwyz).
• Replacement of high-consumption light fittings.
• A specialist company instructed by SZKB assessed branch buildings in order to identify the potential for photovoltaic systems. A master plan for the specific installation of PV installations to replace heating systems by 2030 has been drawn up, which provides for the construction of six PV systems.
• in regard to the target of «raising employee awareness of resource consumption (e.g. paper, heating, light and electricity)», the Executive Board raised awareness through a bank-wide call.

SZKB considers the measures taken to be appropriate and effective.

Further development and next steps

SZKB aims to achieve the defined environmental targets by continuing to pursue its chosen approach and also systematically taking advantage of its options for reducing its CO₂ emissions. Over the coming years, SZKB will focus on the following measures:

• Ongoing conversion to more environmentally friendly heating systems at branch properties (solely) owned by the Bank.
• Installation of photovoltaic systems according to the Masterplan 2030.
• Implementation of the article on major consumers in the Canton of Schwyz based on an energy consumption analysis prepared by an external energy specialist. This will result in energy efficiency improvements, which will be implemented within the next three years.

Key figures on operational ecology

¹ _{Reference year.}

² _{Of which 96.5% from renewable energy sources in 2023.}