5.5 Key figures and targets

Emissions were calculated based on the global standards of the Greenhouse Gas Protocol (GHG) and the Partnership for Carbon Accounting Financials (PCAF), which SZKB adhered to in 2024. Primarily four business fields or areas within SZKB have been identified to calculate greenhouse gas emissions and their reduction targets, with further subdivision into fund business and asset management (AM) in the investment sector.

SZKB owns investment properties. There has not yet been any systematic collection and reporting of associated CO₂ emissions (see Annex Disclosure of the methodological bases, Chapter 1.3 Measuring CO₂ emissions).

 

Financed emissions and key figures in the area of financing

SZKB has calculated the greenhouse gas emissions on its financing portfolio (Mortgage and credit area) (Scope 3, Category 15) as of 30 June 2024 (previous period 31 December 2022). It will report in future as of 30 June. The calculated values are used as the basis for measuring the emission intensity objectives.

SZKB allocated its financing portfolio to the following PCAF classes (this subdivision differs from the SZKB definitions used internally):

• Mortgages (owner-occupied residential property and condominiums)
• Commercial properties (outstanding mortgage financing with mortgage liens)
• Corporate financing (other loans)

Matrix for emissions calculations

Business/area	Financing business	Financial assets	Fund business	Assets under management	Direct and indirect operational greenhouse gas emissions
Description	• Mortgage portfolio	Financial assets	Own funds	• Custody account assets for advisory mandates	• Direct emissions (Scope 1)
	• Commercial property			• Custody account assets for discretionary mandates	• Indirect emissions from purchased energy (Scope 2)
	• Corporate loans				• Upstream and downstream value chain (Scope 3)
Measurement	Yes	Yes	Funds with "Focused" preference (ethical funds)	Yes, AM mandates with a "Focused" preference	Yes
Objective	Yes, without corporate loans	No	Yes	Yes	Yes

 

Following its adherence to the PCAF, SZKB has reviewed the calculation methodology and implemented the following methodological changes:

• Blank örK financing from corporate financing excluded (PCAF does not have emission factors for cantons, districts or municipalities but currently only at the state level).
• Mortgage financing of agricultural real estate will now be allocated to commercial real estate (previously to corporate loans). Operating loans remain under corporate loans. This is in line with the approach to commercial financing.
• For holding companies, financing has been divided up among the operating companies wherever possible.
• By adhering to the PCAF, SZKB now has access to its emission factors. According to the PCAF recommendation, figures for "advanced economies" are adopted at the sectoral level. During the previous year, SZKB used an input/output model for calculating emission factors that was developed by a consulting firm.

Due to these changes, SZKB was restating last year’s calculation as of 31 December 2022.

In cases where values were missing, external public data sources were used for the calculation and, if necessary, average figures and estimates were derived from known values. The PCAF Data Quality Score (PCAF score) reflects the average quality of the data used.

 

Financing¹	30/06/2024	31/12/2022	Change
Volume/share of portfolio (CHF million)
Mortgages	8,139	7,658	6.3%
Commercial property	9,113	7,802	16.8%
Corporate financing	464	900	-48.5%
Absolute emissions Scope 1 and 2 (ktCO₂e)
Mortgages	24.8	24.8	-0.2%
Commercial property	46.1	44.8	2.9%
Corporate financing	55.5	52.2	6.2%
Carbon footprint Scope 1 and 2 (tCO₂ per CHF million financed volume)
Mortgages	3.0	3.2	-6.1%
Commercial property	5.1	5.7	-11.9%
Corporate financing	119.7	58.1	106.2%
Emissions intensity Scope 1 and 2 (kgCO₂ per m2 financed area)
Mortgages	24.3	24.2	0.1%
Commercial property	23.3	23.3	-0.1%
Corporate financing	113.1	123.0	-8.0%
PCAF data quality score (Scope 1 and 2)²	4.0	4.0
Absolute emissions Scope 3 (ktCO₂e)
Corporate financing³	114.0	95.3	19.6%

 

¹ Outstanding amounts are selected and aggregated based on the PCAF standard. The subdivision into the asset classes of mortgages (residential properties) and mortgages (commercial properties) differs from the definitions commonly used by SZKB.
² Weighted score.
³ PCAF requires Scope 3 disclosure only for the categories of corporate financing and unlisted investee companies (not relevant for SZKB).

 

The emissions intensity shown pertains to the Scope 1 and Scope 2 emissions from financing. The PCAF also provides companies with emission factors for Scope 3. These are reported separately for the first time.

The financed emissions for the mortgages and commercial properties have been calculated using the emission factors in kgCO₂/m2 (PCAF score 4, in an analogous manner to the previous year) for 2020 provided by PCAF (in accordance with PCAF’s recommendation, as more recent factors still have a provisional status). Financed corporate financing emissions have been calculated using the PCAF emission factors for "advanced economies" at the sectoral level (figures for 2019 in EUR, currency and inflation adjusted according to PCAF’s requirements as of the reference date). If no turnover or accounting data was available for the companies, the emissions were computed using the PCAF factors for score 5.

 

Corporate financing

	30/06/2024			31/12/2022
Sector name¹	Outstanding amount in CHF million	Absolute emissions Scope 1 and 2 (ktCO₂e)	Absolute emissions Scope 3 (ktCO₂e)	Outstanding amount in CHF million	Absolute emissions Scope 1 and 2 (ktCO₂e)	Absolute emissions Scope 3 (ktCO₂e)
Mining and quarrying	-	-	-	0.4	0.4	0.2
Manufacture of coke and refined petroleum products	-	-	-	-	-	-
Manufacture of chemicals and chemical products	0.5	0.4	0.6	1.1	0.8	1.3
Manufacture of food and feed, beverages and tobacco processing	21.0	3.9	15.2	1.0	0.1	0.6
Production of textiles, clothing, leather, leather goods and shoes	2.4	-	0.4	2.6	0.1	0.5
Manufacture of wood and of products of wood and cork, paper and paper products, printing and reproduction of recorded media	0.7	0.1	0.2	2.2	0.5	1.0
Manufacture of basic pharmaceutical products and pharmaceutical preparations	-	-	-	-	-	-
Manufacture of rubber and plastic products, glass and of other non-metallic mineral products	0.5	0.4	0.6	0.3	0.3	0.5
Manufacture of basic metals, manufacture of fabricated metal products	5.4	2.2	5.2	8.0	3.2	7.9
Manufacture of computer, electronic and optical products	0.3	-	0.1	1.2	0.1	0.5
Manufacture of electrical equipment	1.0	0.4	1.4	0.9	0.3	1.0
Manufacture of machinery and equipment	0.8	0.1	0.5	1.6	0.2	0.8
Manufacture of automobiles and automobile parts and other vehicle construction	10.5	-	0.3	0.1	-	0.1
Manufacture of furniture, other goods, repair and installation of machinery and equipment	0.6	0.1	0.4	1.5	0.2	0.9
Construction, civil engineering, specialised construction activities	28.3	1.9	21.9	24.3	1.3	15.4
Transport and warehousing	9.0	6.6	3.7	9.2	7.6	4.2
Services to buildings and landscape activities	0.4	-	0.2	1.0	0.1	0.4
Total corporate financing	81.3	16.1	50.7	55.4	15.4	35.2

 

¹ According to the general classification of economic activities of the Federal Statistical Office (NOGA classification). The sectors described above fulfil the disclosure requirements under the PCAF and are therefore not exhaustive.

 

Emissions are calculated according to unchanged emission factors for residential and commercial real estate. SZKB only has actual consumption data in a few isolated cases. SZKB expects that emission factors will decrease over the years with the replacement of fossil-fuel heating systems or energy-efficient renovations.

Emission factors for companies do not sufficiently reflect the source of energy in Switzerland. Due to the application of PCAF emission factors for "advanced economies" at the sectoral level for the first time, emissions tend to be higher because these factors do not take into account the specific clean electricity mix prevailing in Switzerland. This has resulted in a significant increase in emissions compared to the 2023 Sustainability Report, in which Swiss figures for sources of energy were used to calculate emissions.

The volume of financing in climate-sensitive industries makes up 0.4% of SZKB’s total loans (see table above).

 

Financed emissions and key figures in the area of financial investments

As of the end of December 2024, SZKB had a financial investment portfolio totalling CHF 1,530 million, with the majority being highly liquid bonds that are qualified as high-quality liquid assets (HQLA). The portfolio consists of corporate bonds, mortgage bonds, and public sector bonds.

Emissions are calculated in accordance with the PCAF standard, taking into account only securities for which CO₂ data has been lodged ¹. This means that the reported emissions account for 61% (previous year 25%) of SZKB’s financial investment portfolio (table below).

The significant reduction in emissions associated with financial investments compared to the previous year was mainly due to the change in portfolio composition: emission-intensive bonds have matured, contributing to the sharp reduction. At the same time, emissions by some counterparties have decreased compared to the previous year.

SZKB uses data from the sustainability specialist ISS ESG to assess sustainability indicators, with a focus on climate metrics in the area of financial investments and the investment business.

Financial investments2	2024	2023	Change
Volume (CHF million)	928	371	244%
Absolute emissions Scope 1 and 2 (ktCO₂e)	3	8	-63%
Carbon footprint Scope 1 and 2 (tCO₂ per CHF million invested)	3.3	21.7	-85%
Emissions intensity Scope 1 and 2 (tCO₂e per million turnover, known as WACI)	5.5	17.7	-69%
PCAF data quality score (Scope 1 and 2)3	1.1	1.7
Absolute emissions Scope 3 (ktCO₂e)	57	75	-24%

 

¹ There is no standard according to the PCAF for municipalities, cantons and multilateral organisations.
² For the overview, only securities for which CO₂ data has been lodged were taken into account. Coverage: 61%.
³ Weighted score.

 

Financed emissions and key figures in the area of investments

SZKB reviews the climate-relevant data for SZKB Ethical Funds and mandates on a quarterly basis. These only contain individual securities for which it is easier to assess climate-relevant data due to better data availability than for collective investments. SZKB offers ethical products with four different risk characteristics (ratio of equities to fixed-income securities): income, balanced, growth and capital gains. Each type of risk is analysed separately in relation to greenhouse gases, and the findings are published in the specific climate report for that product.

Fund business1	2024	20232	Change2
Volume (CHF million)
SZKB Ethical Fund Income	29.6
SZKB Ethical Fund Balanced	255.0
SZKB Ethical Fund Growth	31.5
SZKB Ethical Fund Capital Gain	197.3
Absolute emissions Scope 1 and 2 (ktCO₂e)
SZKB Ethical Fund Income	0.2
SZKB Ethical Fund Balanced	1.3
SZKB Ethical Fund Growth	0.2
SZKB Ethical Fund Capital Gain	1.1
Carbon footprint Scope 1 and 2 (tCO₂ per million CHF invested)
SZKB Ethical Fund Income	6.4
SZKB Ethical Fund Balanced	5.0
SZKB Ethical Fund Growth	5.3
SZKB Ethical Fund Capital Gain	5.8
Emissions intensity Scope 1 and 2 (tCO₂e per million turnover, known as WACI)
SZKB Ethical Fund Income	9.3
SZKB Ethical Fund Balanced	9.7
SZKB Ethical Fund Growth	10.2
SZKB Ethical Fund Capital Gain	10.1
PCAF Data Quality Score (Scope 1 und 2)3	1.2
Absolute emissions Scope 3 (ktCO₂e)
SZKB Ethical Fund Income	9.7
SZKB Ethical Fund Balanced	83.2
SZKB Ethical Fund Growth	11.6
SZKB Ethical Fund Capital Gain	121.9

 

¹ For the overview, only securities for which CO₂ data have been lodged were taken into account. Coverage of SZKB Ethical Funds: Income 90.54%, Balanced 94.12%, Growth 95.99%, Capital Gain 99.05%)
² Data only available from the 2024 financial year; no changes can be reported.
³ Weighted score.

 

Asset management (AM mandates with a "Focused" preference (ethical mandates))1	2024	20232	Change2
Volume (CHF million)
Core mandate Ethical Income	1.5
Core mandate Ethical Balanced	81.4
Core mandate Ethical Growth	16.1
Core mandate Ethical Capital Gain	13.1
Absolute emissions Scope 1 and 2 (ktCO₂e)
Core mandate Ethical Income	0.0
Core mandate Ethical Balanced	0.4
Core mandate Ethical Growth	0.1
Core mandate Ethical Capital Gain	0.1
Carbon footprint Scope 1 and 2 (tCO₂ per million CHF invested)
Core mandate Ethical Income	6.2
Core mandate Ethical Balanced	5.0
Core mandate Ethical Growth	5.3
Core mandate Ethical Capital Gain	5.8
Emissions intensity Scope 1 and 2 (tCO₂e per million turnover, known as WACI)
Core mandate Ethical Income	9.1
Core mandate Ethical Balanced	9.5
Core mandate Ethical Growth	10.2
Core mandate Ethical Capital Gain	10.2
PCAF Data Quality Score (Scope 1 and 2)3	1.2
Absolute Emissionen Scope 3 (ktCO₂e)
Core mandate Ethical Income	0.5
Core mandate Ethical Balanced	26.7
Core mandate Ethical Growth	6.0
Core mandate Ethical Capital Gain	8.2

 

¹ For the overview, only securities for which CO₂ data have been lodged were taken into account. Coverage of core mandate Ethical: Income 92.72%, Balanced 95.32%, Growth 97.03%, Capital Gain 100%)
² Data only available from the 2024 financial year; no changes can be reported.
³ Weighted score.

 

Direct and indirect operational greenhouse gas emissions

Each year, SZKB calculates its climate footprint in accordance with ISO 14064-1 and the Greenhouse Gas Protocol for Scope 1 and 2 as well as parts of Scope 3 in conjunction with the consulting company Swiss Climate (see Annex 1 Disclosure of the methodological bases, Chapter 1.3.4 Measuring operational CO₂ emissions). An external auditing company conducted an audit of the carbon footprint and awarded the "Certified CO₂ optimised by Swiss Climate" label. The certification guidelines for this "Silver Label" require not only an annual survey and audit of the company’s own carbon footprint but also the establishment of a target path and measures to reduce CO₂ emissions.

A carbon footprint for the 2023 financial year was prepared in 2024. Each year, SZKB can only report on the previous year’s emissions due to delays in the provision of data (internal and external dependence).

Direct and indirect operational greenhouse gas emissions (tCO₂)	2023	2022	Change	2021
Scope 1: Direct GHG emissions due to the burning of fuels	68.4	73.9	-7.4%	95.4
Scope 2: Indirect GHG emissions due to district heating and electricity (energy production)	16.1	15.9	1.3%	16.5
Scope 3: Indirect GHG emissions from…
Scope 1, 2 and 3 operational GHG emissions total	1050.5	996.1	5.5%	916.9
Scope 1, 2 and 3 operational GHG emissions in tCO₂e per employee	1.9	1.9	1.1%	1.8

SZKB is committed to reducing greenhouse gas emissions and achieving the target of climate neutrality ("net zero") by 2050 at the latest. It has set clear reduction targets that will be pursued as part of its transition plan. These targets are reviewed regularly (at least annually) using relevant metrics and key performance indicators (KPIs) to evaluate progress in meeting the targets. SZKB focuses on Switzerland’s climate strategy when setting its climate targets. However, achieving these targets requires not only a commitment by the financial industry and SZKB itself through the provision of education, advice and financing but also the creation of appropriate political framework conditions. In order to implement them successfully, it is crucial for Switzerland to pursue its net zero target systematically and support the economy with the necessary incentives and regulatory measures (see Annex 1 Disclosure of the methodological bases, Chapter 1.4 Transition plan).

 

Transition plan for financed emissions in the financing business

Achievement of objectives
As part of the transition plan to reduce financed emissions in the financing business, SZKB has set clear targets in order to play its part in achieving climate targets. Although initial measures have already been implemented, such as promoting a sustainable financing solution ("handshake mortgage"), the emissions intensity in the portfolio has not yet been significantly reduced. This is due to factors that include structural, sector-specific conditions that require long-term adjustments.

There has been no change in intensity for real estate, as emission factors are still calculated using 2020 emission factors (PCAF recommendation). SZKB only has actual consumption data in a few isolated cases. Due to the fact that renovations are constantly being carried out in the loan portfolio (third-party and self-financed), there will be further reductions in this area in the coming years.

 

Transition plan for financed emissions in the financing business

 

Financing	Targets	Methodology and data	Base year	Base value	30/06/2024	Measures
Mortgages Residential buildings	2030: Reduction of the emissions intensity of financed mortgages by 42%	Method: PCAF Scope 3, cat. 15 Scenario: Energy Perspectives 2050+; Zero basis scenario Metric: Intensity (tCO₂e per million. CHF) (Scope 1+2)	2022	24.2 tCO₂e per million CHF) (Scope 1+2)	24.3 tCO₂e per million CHF) (Scope 1+2)	• Introduction of mandatory ESG training courses for all employees as well as training courses for sales employees and managers • Introduction of "handshake mortgage" as a mortgage for energy-efficient renovation • Raising of awareness of mortgage customers concerning the energy efficiency of their property and supporting them in increasing the energy efficiency of their property • Integration of sustainability risks into risk management
Mortgages Commercial property	2030: Reduction of the emissions intensity of financed commercial property by 40%	Method: PCAF Scope 3, cat. 15 Scenario: Energy Perspectives 2050+, Zero basis scenario Metric: Intensity (tCO₂e per million. CHF) (Scope 1+2)	2022	23.3 tCO₂e per million CHF) (Scope 1+2)	23.3 tCO₂e per million CHF) (Scope 1+2)	• Bank-wide ESG training for all employees and advanced training in sustainable finance or ESG in the financial sector for sales employees and managers • Introduction of the mortgage for energy-efficient renovation, including for commercial clients • Integration of sustainability risks into risk management

 

Transition plan for financed emissions in the fund business and in asset management

Achievement of objectives
As part of the transition plan for the investment and fund business, SZKB is seeking to reduce financed emissions and focus on sustainable investment strategies with the ethical line. SZKB is on track to achieve the climate targets set using targeted measures, such as the expansion and strengthening of sustainable fund products. The progress made so far shows that the strategic focus is having an effect.

Transition plan for financed emissions in the fund business and in asset management

Fund business1	Targets	Methodology and data	Base year	Base value	31/12/2024	Measures
Funds with an "Aware", "Focused" or "Effective" preference	The proportion of SZKB investment funds with alignment with client preferences of "Aware" or "Focussed" as a total of all SZKB investment funds amounts to: 2025 at least 20% 2030 at least 50%	Method: SZKB profiling Metric: Share (volume size) in % Scenario: –	Not available	Not available	43.3%	• Building of a systematic, independent investment controlling system as a second line of defence in planning • Integration of sustainability risks into risk management
Funds with "Focused" preference (ethical funds)	2030: Adherence to the 1.5° C climate target in the Ethical Fund 2050: Adherence to the 1.5° C climate target in the Ethical Fund	Method: ISS Metric: report by data provider on adherence to 1.5°C climate target (<1.5°C) Scenario: implied temperature rise	2023	1.5° C adhered to	1.5° C adhered to	• Building of a systematic, independent investment controlling system as a second line of defence in planning • Integration of sustainability risks into risk management
Asset management1	Targets	Methodology and data	Base year	Base value	31/12/2024	Measures
Funds with an "Aware", "Focused" or "Effective" preference	The number of asset management mandates with client preferences "Aware", "Focused" or "Effective" out of the total of all asset management mandates amounts to: 2025 at least 20% 2030 at least 50%.	Method: SZKB profiling Metric: number of AM mandates in % Scenario: –	Not available	Not available	36.3%	• Building of a systematic, independent investment controlling system as a second line of defence in planning • Integration of sustainability risks into risk management
AM mandates with "Focused" preference (ethical core mandate)	2030: Adherence to the 1.5° C climate target for asset management mandates with a "Focused" preference 2050: Adherence to the 1.5° C climate target for asset management mandates with a "Focused" preference	Method: ISS Metric: report by data provider on adherence to 1.5° C climate target (<1.5°C) Scenario: implied temperature rise	2023	1.5° C adhered to	1.5° C adhered to	• Building of a systematic, independent investment controlling system as a second line of defence in planning • Integration of sustainability risks into risk management

 

¹ _{Investment objectives will be reviewed again in the coming year and adopted and/or further developed if necessary}

 

Transition plan for direct and indirect operational greenhouse gas emissions (Scope 1 to 3)

The transition plan was supplemented in 2024 by reduction targets for 2030, 2040 and 2050. SZKB resolved in 2024 to pay climate protection contributions for unavoidable operational CO₂ emissions starting for the first in 2025, covering CO₂ emissions from the 2024 reporting year.

Achievement of objectives
SZKB’s operational CO₂ emissions increased by 54.4 t from 996.1 t in 2022 to 1,050.5 t in 2023. This is mainly due to the increase in emissions due to refrigerant losses, the procurement of IT equipment and the rising headcount.

 

Transition plan for direct and indirect operational greenhouse gas emissions (Scope 1 to 3)

Operations	Targets	Methodology and data	Base year	Base value	2023	Measures
Operational CO₂ emissions (Scope 1, 2, 3)	2027: Reduction of operational CO₂ emissions by 145.0 tCO₂e to 770.0 tCO₂e. 2030: 841.2 tCO₂e 2040: 650.9 tCO₂e 2050: 357.5 tCO₂e	Method: GHG Protocol/ Swiss Climate: direct and indirect operational emissions (Scope 1, 2, 3) Metric: absolute tCO₂ (Scope 1, 2, 3) Scenario: own calculations based on assumptions	2021	916.9 tCO₂e	1,050.5 tCO₂e	• Energy efficiency analysis at the headquarters in Schwyz and implementation of the resulting measures • Usage of photovoltaic installations and replacement of fossil heating systems • Allocation of climate change contributions for operational CO₂ emissions from the 2024 financial year • Taking ESG criteria into account in procurement
KPI Scope 1:	2030: 60.1 tCO₂e 2040: 30.1 tCO₂e 2050: 0 tCO₂e	See operational CO₂ emissions (Scope 1, 2, 3)	2021	98.4 tCO₂e	123.2 tCO₂e	See operational CO₂ emissions (Scope 1, 2, 3)
KPI Scope 2:	2030: 20.8 tCO₂e 2040: 10.4 tCO₂e 2050: 0 tCO₂e	See operational CO₂ emissions (Scope 1, 2, 3)	2021	16.5 tCO₂e	16.1 tCO₂e	See operational CO₂ emissions (Scope 1, 2, 3)
KPI Scope 3:	2030: 760.3 tCO₂e 2040: 610.4 tCO₂e 2050: 357.5 tCO₂e	See operational CO₂ emissions (Scope 1, 2, 3)	2021	802.0 tCO₂e	911.2 tCO₂e	See operational CO₂ emissions (Scope 1, 2, 3)
Means of transport (Scope 3)1	2030: Reduction of CO₂ emissions for means of transport (Scope 3) by 123.3 tCO₂e	Method: GHG Protocol/ Swiss Climate: direct and indirect operational emissions (Scope 3) Metric: absolute tCO₂e (means of transport Scope 3) Scenario: Energy Perspectives 2050+	2021	583.4 tCO₂e	579.6 tCO₂e	Preparation of preliminary study for a mobility concept for reducing CO₂ emissions associated with means of transport

 

¹ _{Means of transport Scope 3 is comprised of: commuter journeys, transportation, business trips, although without vehicles owned by the company}

 

At 1,050.5 tCO₂, operational CO₂ emissions were 167.6 tCO₂ or 19.0% above the target under the reduction pathway. While the targets for the emission sources of heating, transport, paper, printing and shipping, consumables and water could be achieved, this was not the case for power consumption (+5.1 tCO₂), business travel (+9.7 tCO₂), commuter journeys (+6.2 tCO₂), IT equipment (+131.4 tCO₂), waste (+3.4 tCO₂) and refrigerants (+51.5 tCO₂). The significant deviation for refrigerants was due to a leak in an air conditioning system as well as the fact that no leaks occurred during the base year and thus emissions of 0.0 tCO₂ were recorded. The large deviation for IT equipment can be attributed to purchases made in 2023 as part of a planned infrastructure renewal (emissions in the base year: 54.2 tCO₂). If the two special factors such as the procurement of refrigerants and IT equipment had been disregarded, SZKB would have successfully achieved its reduction target for 2023.