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Alternative Bank Switzerland 2016 Scorecard

The scorecard is divided between basic requirements, quantitative factors supplemented with brief explanations, and qualitative elements. These sections provide details of a bank’s mission and transparency; builds on this with carefully selected data that highlights the extent to which a bank is engaging in sustainability as its core activity; and explains how a sustainability agenda translates into the everyday work of a bank and its co-workers.

Basic requirements

Basic Requirements

Show the Basic Requirements

Quantitative factors

Quantitative Factors

Show the Quantitative Factors

Qualitative elements

Qualitative Elements

Show the Qualitative Elements

Regulated financial institution

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The bank provides evidence that it is a regulated financial institution including:

  • Where it operates
  • Under what regulatory framework it operates
  • Evidence of client deposit and financing relationships

Alternative Bank Switzerland Ltd. is a regulated bank under the Swiss Banking Law. Its statutes were approved by the Swiss Banking Commission on August 6, 1990.

See the statutes on our website.

Mission Statement

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Mission Statement as published on its website or in any official document with specific relevant references to it value-based banking strategies

ABS is committed to a business in the interest of the public, mankind and nature and to a sustainable quality of life for present and future generations.

Banking services are offered to clients that value social and environmental  development.

See the mission statement on our website.

Reporting Transparency

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Annual Reports must be publicly available

Further proof of engagement in transparent reporting practices is encouraged

Swiss Regulation requires audited annual financial reports with predetermined content and format. The ABS-annual-report had an integrated reporting format as the entire business model is ethically reflected and focuses on social and environmental sustainability. In addition, the Annual Report includes a list with all loans granted, including client name, amount and use of the loan. In addition, ABS decided to publish a separate sustainability report in 2017, in order to report the sustainability activities more thoroughly.

See the recent annual reports on our website.

These factors are related to the Principles of Values-based Banking and provide insight into three key elements of a bank’s activity linked to its:

  • financial viability,
  • focus on the real economy and
  • focus on a triple bottom of line of people, planet and prosperity

Bank Resiliency through Earnings – 3 year Average Return on Assets 0.32%

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Return on Assets tell you how profitable a bank is. It is a good measure of a bank’s operating performance relative to the total amount of money it manages. This is important because values-based banks need to be resilient financially to deliver long term, positive impact.

It’s also reasonable to assume that if a bank’s profits are excessively high they may be taking inappropriate risks and may be enjoying unreasonable profits at the expense of their customers.

To really understand how profitable a bank is, and to avoid comparing ‘apples with oranges’, it’s important to compare a bank’s profitability with other banks in the same market. Therefore this measure is compared with a peer group selected and transparently described by the bank.

Return on Assets 2016: 0.32%

Return on Assets 2015: 0.25%

Return on Assets 2014: 0.18%

Market Comparison – 3 Year Average Return on Assets 0.44%

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Return on Assets tell you how profitable a bank is. It is a good measure of a bank’s operating performance relative to the total amount of money it manages. This is important because values-based banks need to be resilient financially to deliver long term, positive impact.

It’s also reasonable to assume that if a bank’s profits are excessively high they may be taking inappropriate risks and may be enjoying unreasonable profits at the expense of their customers.

To really understand how profitable a bank is, and to avoid comparing ‘apples with oranges’, it’s important to compare a bank’s profitability with other banks in the same market. Therefore this measure is compared with a peer group selected and transparently described by the bank.

Return on Assets 2016: 0.44%

Return on Assets 2015: 0.43%

Return on Assets 2014: 0.43%

Explanation:

Benchmark taken from "IFZ Swiss Retail Banking Study 2016"

Bank Resiliency through Capital – Equity to Total Assets 7.97%

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The Equity to Total Assets ratio tells you how strong a bank is. The Equity of a bank represents the money invested by its owners to cover any losses it may incur. This ratio uses the total balance sheet of the bank, which means it provides a transparent and conservative measure of a bank’s resiliency. This is important for values-based banks which are focused on lasting benefits to society, and so want to develop strong capital positions that make them stronger over the long-term.

Other measures, such as risk weighted assets capital ratios, can be used for the same purpose but they are both more complex and less transparent, so the Scorecard has chosen to use Equity to Total Assets. As a guide the Scorecard currently recommends this level to be at 8% or higher.

Equity to Total Assets 2016: 7.97%

Equity to Total Assets 2015: 6.91%

Equity to Total Assets 2014: 6.51%

Explanation:

Swiss Regulation FINMA defines "Equity" as "Eligible capital".

Bank Resiliency through Asset Quality – Low-quality Assets to Total Assets 0.94%

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Low quality assets (such as loans to enterprises that struggle to repay them), at levels significantly above the market average, are generally a bad thing for banks because they represent the risk of financial losses in the future.

Values-based banks should have strong customer relationships, and have a deep understanding of their activities and the sectors they work in. Together this will limit the chances of loans and investments going wrong and should make working through challenges with clients easier when problems do occur. Meaningful relationships with customers and precisely this expertise, is at the core of a values-based approach to banking.

The quality of a bank’s assets should be compared with banks in the same market to understand how it is doing relative to market conditions. Therefore this measure is compared with a described peer group.

Low-quality Assets to Total Assets 2016: 0.94%

Low-quality Assets to Total Assets 2015: 0.81%

Low-quality Assets to Total Assets 2014: 1.31%

Explanation:

ABS applies the precautionary principle in rather over-estimating risks.

Market Comparison – Low-quality Assets to Total Assets 0.52%

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Low quality assets (such as loans to enterprises that struggle to repay them), at levels significantly above the market average, are generally a bad thing for banks because they represent the risk of financial losses in the future.

Values-based banks should have strong customer relationships, and have a deep understanding of their activities and the sectors they work in. Together this will limit the chances of loans and investments going wrong and should make working through challenges with clients easier when problems do occur. Meaningful relationships with customers and precisely this expertise, is at the core of a values-based approach to banking.

The quality of a bank’s assets should be compared with banks in the same market to understand how it is doing relative to market conditions. Therefore this measure is compared with a described peer group.

Low-quality Assets to Total Assets 2016: 0.52%

Low-quality Assets to Total Assets 2015: 0.31%

Low-quality Assets to Total Assets 2014: 0.31%

Explanation:

Benchmark taken from "IFZ Swiss Retail Banking Study 2016".

Bank Resiliency through Client Based Liquidity – Client Deposits to Total Assets 90.45%

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Banks finance their assets (such as loans, investments and their wider activities) with money that is:

  • deposited with them by customers,
  • and/or borrowed from others (mostly other banks) and then lent on to clients,
  • or sourced from investors.

A large amount of borrowing from the markets to finance a bank’s activity is, by definition, riskier because markets are more volatile. Banks are both stronger and more values-based when more of the money they use to finance their activity comes from customers.

High levels of funding from customer’s deposits also suggests a strong connection with clients and the real economy – both important elements of a values-based bank. Ideally 75% of a bank’s assets are funded through clients.

Client Deposits to Total Assets 2016: 90.45%

Client Deposits to Total Assets 2015: 92.21%

Client Deposits to Total Assets 2014: 92.87%

Assets Committed to the Real Economy to Total Assets 63.61%

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Values-based banks are strongly and directly connected to financing the real economy because that’s where they can have a positive impact on people’s lives and safeguard the environment.

Real economy assets in a values-based bank should, therefore, be relatively high. By the same token financial economy assets should be relatively low because their impact on people’s lives is, at best, indirect. The Scorecard seeks to have the level for this ratio above 50% and ideally close to 65%.

Assets Committed to the Real Economy to Total Assets 2016: 63.61%

Assets Committed to the Real Economy to Total Assets 2015: 58.50%

Assets Committed to the Real Economy to Total Assets 2014: 65.93%

Explanation:

The real economy exposure increased by 5% due to further reduction of liquidity.

Revenues from the Real Economy to Total Income 76.88%

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If a bank is earning more of its revenues from the real economy, it is both making more of a difference to people’s lives and is a more resilient institution.

Revenues from the financial economy tend to be more volatile, are more removed from most people’s lives, are highly unlikely to be sustainable and mean a bank is less resilient over the long term. Ideally 75% of a bank’s revenues will be from the Real Economy.

Revenues from the Real Economy to Total Income 2016: 76.88%

Revenues from the Real Economy to Total Income 2015: 85.00%

Revenues from the Real Economy to Total Income 2014: 57.67%

Explanation:

The real economy revenues decreased by 8%. Despite the increased loan volume the interest income declines due to shrinking margings.

Assets Committed to the Triple Bottom Line to Total Assets 70.63%

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This figure provides the best indication of a bank’s commitment to a values-based banking model. Triple Bottom line assets don’t just mean assets in the real economy. They specifically refer to money invested by a bank in individuals and enterprises that deliver positive social, environmental and economic benefits to society.

Not all intermediated money will be committed, however, because some liquidity needs to be available for the bank to support its clients in case of disruptions in the market. Therefore the Scorecard targets this factor to be between 25% and 55%.

Assets Committed to the Triple Bottom Line to Total Assets 2016: 70.63%

Assets Committed to the Triple Bottom Line to Total Assets 2015: 68.70%

Assets Committed to the Triple Bottom Line to Total Assets 2014: 66.31%

Leadership

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Qualitative Elements provide substantial and important information on a bank’s value-based banking approach and results. This information is used to provide a comprehensive evaluation of a bank’s efforts, capabilities and performance. The information for each element is organised to provide insight from strategy to results as follows:

Leadership

The bank’s leadership and governance is focused on values-based banking, and the diversity of its leaders reflect this culture.

The bank’s leadership and governance is focused on sustainability, and the diversity of its leaders reflect this culture.

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The bank’s leadership and governance is focused on values-based banking, and the diversity of its leaders reflect this culture.

  1. Articles of Incorporation (Statutes)

The Statutes were laid down by the founders of ABS to ensure that it will maintain a strong focus on values and sustainability over the years.

  1. Vision & Mission

The Vision and Mission was developed in a stakeholder process involving shareholders, clients, board members and staff. Its goal is to provide direction to the Board and Management.

  1. Corporate Strategy

The Corporate Strategy was elaborated by the Board and Management to clarify medium-term (5-year) goals.

  1. Shareholder Diversity

Founders emphasized that the Bank must remain independent from large shareholders.

  1. Board Diversity

Founders were aware that the Board plays a crucial role in terms of leadership for the Bank. Therefore they have laid out clear criteria that must be met in terms of the Board's composition.

  1. Management Diversity

The Board selects the Management Team.

The Board is aware that the Management Team plays a critical role in ensuring that the values of the Bank are upheld in everyday activities, and that this is only possible if the Management Team itself is mission and value aligned. Founders and the Board also emphasize gender balance at the Management level.

  1. Thought leadership

The Bank wants to have a public impact as a banking model.

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The bank’s leadership and governance is focused on values-based banking, and the diversity of its leaders reflect this culture.

  1. The Statutes define the following purpose and conditions for operation (Art. 2):
  • promote economic, ecological sociopolitical and cultural alternatives thorough finance and investment
  • promote social, ecological and self-governed forms of living and working
  • promote the solidarity between capital providers and capital takers
  • promote financial responsibility and literacy
  • ensure transparent reporting of all business aspects
  • avoid maximizing profits
  • promote gender balance

 

  1. The Vision & Mission lays down the core values of the Bank. These clearly put the wellbeing of mankind and nature at the heart of the mission of the Bank. The values encapsulated in the Vision & Mission guide the Bank's activities at all levels.
  2. The Corporate Strategy defines concrete goals with respect to governance, business, sustainability and impact as well as human capital development.
  3. The Statutes require that the voting rights of any one shareholder may not exceed 5%. Shareholders with more than 3% voting rights are published by name.
  4. The Statutes spell out the following criteria for the Board:
  • minimum 7 and maximum 11 members to ensure sufficient diversity
  • gender quota: either gender may not represent more than 60% of members
  • strong interest in social and environmental issues

representation of the different regions of Switzerland

  1. The requirements for becoming a member of the Management Team include both business and banking skills as well as a proven affinity with the values and business model of the Bank. The Statutes express a preference for a balanced representation on the Management Team.
  2. - quarterly newspaper "moneta" with discussions about ecological and social approaches for the economy and the society (independent editorial team).

- regular lectures about sustainability topics for the interested public given by the CEO and the specialized employees

-  public events ("money-talks") with presentations and discussions about the money system, social banking, sustainability and financial system

-  active memberships in different national and international networks for a sustainable economy

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The bank’s leadership and governance is focused on values-based banking, and the diversity of its leaders reflect this culture.

  1. The Bank is operating in conformity to these requirements since more than 25 years. All other guidance documents refer to the purpose of the Bank as laid down in the Statutes. The Statutes can be downloaded on the ABS-website.

 

  1. The guiding values are commonly known by staff and are universally applied in all activities of the Bank. The Mission and Vision can be downloaded on the ABS-website.

 

  1. Under the 2012-2016-Strategy, the Bank has
  • strengthened its positioning in the market
  • significantly increased its capital base and resilience
  • introduced new, impact oriented products
  • strengthened its impact and sustainability reporting
  • grown its business and organization

 

  1. The Bank has more than 6000 shareholders, including private individuals, values based organizations and institutional investors. Only one shareholder - a values based pension fund - holds more than 3% of voting rights. No single shareholder can exert control over the Bank.

 

  1. The Board is highly diverse in terms of gender, region and skills mix. The skills represented on the Board include banking and finance, ethics and sustainability. Moreover, clients and staff interests are also represented on the Board

 

  1. The Management Team is highly diverse in terms of the skills mix and professional experience, which includes banking, finance, auditing, regulation, sustainability, development and communications. One of the four professionals on the Management Team is female.

 

7.- the newspaper "moneta"  is issued quarterly with a print run of 30.000.

- over 400 people joined the ABS events ins 2016 and discussed about the topic "money".

- ABS is an active member of: Sustainable Swiss Finance (SSF),   European Federation of Ethical and Alternative Banks (FEBEA), Institute for Social Banking (ISB), Forum Nachhaltige Geldanlagen (FNG), Corporate Responsibility Interface Center (CRIC)

Organisational Structure

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Qualitative Elements provide substantial and important information on a bank’s value-based banking approach and results. This information is used to provide a comprehensive evaluation of a bank’s efforts, capabilities and performance. The information for each element is organised to provide insight from strategy to results as follows:

Organisational Structure

The bank is organised to support its mission focus.

The bank is organised to support its mission focus.

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The bank is organised to support its mission focus.

  1. Statutory Ethics Control

Founders wanted to make sure that the values defined in the Statutes would be upheld.

  1. Sustainability Unit

Management wants to ensure that sustainability issues and policies are consistently developed, implemented and monitored throughout the Bank, and that the Bank is reporting transparently on its sustainability and impact.

  1. Sustainable Investment Analysis

All investment activities must conform to the stringent sustainability criteria of the Bank.

  1. Sustainable Investment Council

To ensure quality control, expert oversight must be provided over the Sustainability Analysis Unit.

  1. Staff Association

The Bank believes in strong participation of staff in all matters relevant to staff.

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The bank is organised to support its mission focus.

  1. The Statutes require an Ethics Control that reports on an annual basis to the General Assembly on whether the conduct of business is in line with the ethical objectives of the Bank.

 

  1. A dedicated Sustainability Unit has been established that reports directly to the CEO.

 

  1. The Bank has decided to carry out sustainability screening in-house to ensure a stringent approach. For this a Sustainability Analysis Unit has been established in the Asset Management Department

 

  1. An Expert Council for Sustainable Investments including external experts has been established to monitor the work of the Sustainability Analysis Unit.

 

All co-workers of the Bank are organized in a Staff Association, which is shareholder of the Bank and is represented through its Chair on the Board of the Bank.

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The bank is organised to support its mission focus.

1.The Ethics Control analyses and reports on an annual basis to the Board and the General Assembly. The results of the report are discussed by the General Assembly and the Board and recommendations of the Ethics Control  are taken on board by Management. The Reports can be downloaded on the ABS-website.

  1. The first Sustainability Reports werre published in 2016 and 2017. The reports can be downloaded on the ABS-website.

A comprehensive Sustainability Strategy for the Bank  is currently being developed.

  1. All investments are screened in-house against the stringent exclusion and ESG criteria in order to meet the Bank's standards and values.

4.All methodological questions and exceptions pertaining to sustainability analysis of investments are reviewed by the Expert Council. More information on the Expert Council can be downloaded on the ABS-website.

5. All staff issues, including staff regulation,  compensation policy and other staff related issues and activities are coordinated and/or vetted with the Staff Association.  Staff has the possibility to intervene if necessary at the Board level.

Products and Services

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Qualitative Elements provide substantial and important information on a bank’s value-based banking approach and results. This information is used to provide a comprehensive evaluation of a bank’s efforts, capabilities and performance. The information for each element is organised to provide insight from strategy to results as follows:

Products and Services

The bank’s core products and services are fair, transparent and directly contribute to its values-based mission.

The bank’s core products and services are fair, transparent and directly contribute to its sustainability mission.

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The bank’s core products and services are fair, transparent and directly contribute to its values-based mission.

  1. Saving Accounts and Term Investments

The Bank wants to provide clients the opportunity to support impact projects through its savings accounts and term investments.

  1. Investing Activities

The Bank wants to be the leader in sustainable investing in Switzerland.

  1. Lending Activities

The Bank wants to enable projects with a high social or environmental value added.

  1. Innovation Fund

The Bank wants to enable innovative start-ups with a proven business model to grow.

  1. Communication Activities

The Bank wants to foster public dialogue on money, finance and the alternative economy.

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The bank’s core products and services are fair, transparent and directly contribute to its values-based mission.

  1. The Bank offers impact savings products and term investments with a particular impact focus (Förderkonto, Förder-Kassenobligation), but a lower remuneration of clients. These are used to refinance corresponding lending activities.
  2. The Bank only offers sustainable investments and managed accounts that conform with the stringent sustainability requirements of ABS. ABS does not pursue a "best-in-class" approach.
  3. The Bank is specialized on lending to high impact sectors, such as renewable energy, organic farming, affordable housing, social organizations and sustainable business.
  4. The Bank has established an "at-arms-length" Innovation Fund that provides capital and loans to innovative start-up companies. The fund is capitalized with annual donations from ABS and shareholders.

5. The Bank publishes a quarterly magazine "moneta" with an independent editorial staff and organizes regular events with renown speakers on the alternative economy. On occasion it takes position with respect to political initiatives and debates that concern its core business.

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The bank’s core products and services are fair, transparent and directly contribute to its values-based mission.

  1. Demand for such impact oriented savings products and term investments has been high, despite of the lower remuneration.

In its Annual Report the Bank reports all impact term investments as well as the usage of these funds for the corresponding impact sectors.

  1. All investments are screened in-house against the stringent exclusion and ESG criteria in order to meet the Bank's standards and values. New clients with existing investment portfolios have to divest from any titles excluded from the Bank's investment universe within 2 years.
  2. All loans conform with the Bank's stringent exclusion criteria. Per end 2016, 84% of loans provide a specific social and/or environmental value added. In its Annual Report the Bank reports all individual loans as well as the social and/or environmental value added of the lending portfolio at an aggregated level.
  3. As per the end of 2016, the Innovation Fund is invested in 26 companies and has provided 27 loans and 2 guarantees to high-impact organizations.
  4. 2016 four editions of moneta reaching 30'000 clients have been published. Four events have been organized with strong participation by clients and shareholders.

Management Systems

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Qualitative Elements provide substantial and important information on a bank’s value-based banking approach and results. This information is used to provide a comprehensive evaluation of a bank’s efforts, capabilities and performance. The information for each element is organised to provide insight from strategy to results as follows:

Management Systems

The bank’s management systems are transparent, include values-based criteria and exist to increase the institution’s positive impact.

The bank’s management systems are transparent, include sustainability criteria and exist to increase the institution’s positive impact.

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The bank’s management systems are transparent, include values-based criteria and exist to increase the institution’s positive impact.

  1. Rules governing Organization and Business Activities (Board Regulation)

The "Rules governing Organization and Business Activities" is one of the main legal foundations of a bank.  They spell out the permissible banking activities, the overall risk appetite and decision making powers. As such they provide the basic operational framework within which the Bank may operate.

1.1. Principles of Investment and Lending Policy (Board Regulation)

In  a values based bank it is necessary to lay out the values framework within which the Bank can operate.

  1. Management Directives

Quality control over banking operations is ensured through Management Directives. They define for each activity the appropriate procedures and the Bank's risk appetite.  In a values based bank it is necessary to tailor risk appetite to the particular needs of the target sectors.

  1. Management Systems

Management Systems enable Management to monitor and control the Bank's activities and risk exposures. In a values based bank it is important to also report and monitor sustainability and impact related data.

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The bank’s management systems are transparent, include values-based criteria and exist to increase the institution’s positive impact.

  1. The Rules governing Organization and Business Activities of ABS also include references to the values and ethics of the Bank. They have to be approved by the Supervisory Body. They are binding for staff and implementation is audited by the internal and the external auditors.

1.1 The Principles of Investment and Lending Policy spell out the guiding principles, the exclusion criteria, the impact sectors and the ESG criteria of the Bank. They are binding for staff and implementation is audited by the internal and external auditors.

  1. Over 50 Directives guide the Bank's everyday work. They play a crucial role in controlling and managing the Bank's risk and performance. Directives also allow to specify a higher risk appetite for higher impact activities. Directives are binding for staff and implementation is audited by the internal and external auditors.
  2. The Bank applies different Management Systems to monitor risks and compliance as well as financial and sustainability/impact performance. Systems include an Internal Control System, a Management Information System, an Asset & Liability Management Tool as well as different operational support systems and reportings. Reportings also include sustainability data, for examples the share of loans with a particular social and/or ecological value added or the sustainability of the investment portfolio. The Internal Control System is audited by the internal and external auditors.
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The bank’s management systems are transparent, include values-based criteria and exist to increase the institution’s positive impact.

  1. All business activities conform to the Rules governing Organization and Business Activities.

1.1. All business activities conform to the stringent exclusion criteria of the Bank. In addition, investments are screened against the ESG criteria. Lending and investment activities are directed as far as possible towards the impact sectors.

  1. Bank operations conform to good banking practice. Risks are systematically managed. For higher impact activities, Directives allow for a higher risk appetite, in line with the Bank's values based mandate.

3. The Internal Control System is functioning well. The Bank meets all regulatory reporting requirements. Asset & Liability risks are continuously monitored and remain within the defined risk limitations. Sustainability data is evaluated on an annual basis.

Human Resources Tools

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Qualitative Elements provide substantial and important information on a bank’s value-based banking approach and results. This information is used to provide a comprehensive evaluation of a bank’s efforts, capabilities and performance. The information for each element is organised to provide insight from strategy to results as follows:

Human Resources Tools

The bank’s values-based mission is the starting point for its incentive, compensation, and performance structure.

The bank’s sustainability mission is the starting point for its incentive, compensation, and performance structure

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The bank’s values-based mission is the starting point for its incentive, compensation, and performance structure.

  1. Staff Regulation (Board Regulation)

In a values based bank human resource policy must reflect the values of the Bank.

  1. Compensation Plan

In a values based bank it is important not to set wrong incentives. Moreover, compensation should be objective and fair and thus not linked to the individual but to the position.

  1. Recruitment Policy

In a values based bank recruitment should not only consider professional skills and qualifications, but also affinity with the values and business model of the Bank.

  1. Training

In addition to professional training, values based banks should also provide training with respect to sustainability and ethical reflection.

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The bank’s values-based mission is the starting point for its incentive, compensation, and performance structure.

  1. The Staff Regulation of the Bank includes various elements that are particular for a values based bank and that set the tone for recruitment, incentives, compensation, and performance management. They include:
  • more flexible & lower than average work hours
  • above average social benefits
  • above average parental and social leave
  • principle of non-discriminatory compensation
  • narrow salary band between lowest and highest salary
  • salary transparency
  • encouragement of use of public transportation

encouragement of staff participation

  1. The Bank applies a functional compensation system that was developed for the Swiss Government and today is also used by many not-for-profit organizations. The system evaluates each function by a point system and thus ensures that salary decisions are transparent and as objective as possible.
  2. Job requirements include both professional criteria and criteria related to values based banking. Candidates are vetted during a half day trial in the Bank by the hiring manager, senior management and future work colleagues to ensure that they meet the requirements and match the team.

4. The Bank provides compulsory and voluntary internal  training events on sustainability and ethical reflection. In addition it enables participation of newer staff members in the Institute for Social Banking Summer School  and of senior staff members in the GABV Leadership Academy.

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The bank’s values-based mission is the starting point for its incentive, compensation, and performance structure.

  1. Required work hours are lower than average, overtime is fully compensated and many staff members work part time. This is conducive to a better work-life-balance. Transparency of salaries ensures accountability regarding fairness in compensation. Virtually all staff members use public transportation to get to work, and even in private life many staff members renounce from using cars. Management culture fosters consultation and participation of concerned staff in important decision making.

 

  1. The compensation system is non-discriminatory and compensation is linked to the position, not the person. The salary band is very narrow and there are no financial incentives or bonuses for principle reasons. Salaries are completely transparent within the Bank. Generally the compensation approach is viewed as fair, which is conducive to staff motivation.

 

  1. The Bank's staff is highly diverse, professional and motivated by the values of the Bank. Many staff members pursue extracurricular engagements in line with the Bank's overall mission.

 

  1. Bank's staff is exposed to regular training in sustainability issues. There is a culture of ethical reflection of business conduct and activities, and knowledge regarding sustainability issues and all matters pertaining to sustainable finance is high.

 

Data in 2016:

  • Ratio between minimum and maximum salary: 1:3,8
  • Part-time employment: 55%
  • Women in management positions: 43.3%
  • Internal and external trainings on ethic and sustainability: 5.2 hours/fte
  • Average length of service: 7.6 years
  • Fluctuation rate: 4.9%

Performance Reporting

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Qualitative Elements provide substantial and important information on a bank’s value-based banking approach and results. This information is used to provide a comprehensive evaluation of a bank’s efforts, capabilities and performance. The information for each element is organised to provide insight from strategy to results as follows:

Performance Reporting

The bank reports on the impact of what it does, not just its financial performance in an honest, transparent and accessible way.

 

 

The bank reports on the impact of what it does, not just its financial performance in an honest, transparent and accessible way.

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The bank reports on the impact of what it does, not just its financial performance in an honest, transparent and accessible way.

 

  1. Annual Report

As a values based bank ABS publishes in the annual report non-financial information with the same priority as the mandatory financial ones.

  1. Loan List

The Bank wants to be accountable for what it does with the client's money.

  1. "Value Added"-Report (Lending)

The Bank measures and publishes the impact of the loans on the society and environment.

  1. Carbon Footprinting (Investing)

The Bank wants to reduce its impact on climate change (Scope 3 included).

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The bank reports on the impact of what it does, not just its financial performance in an honest, transparent and accessible way.

 

  1. The annual report of the Bank includes information about the social and ecological impact of its business activities, the responsible handling of the employees, the public relations and the operational ecology. A summary of the Ethics Control report is also published.
  2. The Annual report includes a list with all loans granted, including client name, amount and use of the loan.
  3. The "Value Added"-concept is an ABS tool to measure the loan-impact. It categorizes the loan segments into social and ecological added-value.
  4. In 2016 a pilot project was initiated to measure the CO2 emissions on investment level.
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The bank reports on the impact of what it does, not just its financial performance in an honest, transparent and accessible way.

  1. The annual reports can be downloaded on the ABS-website.
  2. The list with all loans granted is available in paper form.
  3. In 2016 84% of the loans had a social or ecological added value.
  4. As the first Swiss Bank it has published the CO2 emissions of its investment portfolio l in the 2016 Annual Report. The relative CO2 emissions are lower than in the MSCI World Low Carbon Leaders Index. The report can be downloaded on the ABS-website.
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