Sustainability

Raiffeisen wishes to generate added value by living out its cooperative values sustainably. It wants to be consistent as a company with the aims of sustainable development and be economically successful over the long term.

"We wish to live up to our corporate and social responsibility and help shape a sustainable financial centre for the benefit of all our stakeholders."

Heinz Huber

Chairman of the Executive Board of Raiffeisen Switzerland

Sustainability has long been a corporate value at Raiffeisen. In the Raiffeisen 2025 Group strategy, sustainability therefore forms a central element. Raiffeisen accepts responsibility for its actions and activities and the potential impact its decisions may have on society and the environment. For Raiffeisen, sustainability means only using resources to the extent that they remain available to future generations. Raiffeisen arranges its activities so they are compatible with sustainable development. In practice, this means that ecological, social and economic issues are considered when taking decisions. Raiffeisen wishes to stand out as a sustainable cooperative.

Sustainability strategy

A strategy for sustainability at Group level was drafted in 2020 in consultation with internal and external stakeholders of Raiffeisen to implement the strategic thrusts from the Raiffeisen 2025 Group strategy in practice. The Executive Board of Raiffeisen Switzerland has approved the strategy and the Board of Directors of Raiffeisen Switzerland has taken note of it.
The sustainability strategy sets down ten guiding principles. Raiffeisen uses these to tackle issues which have been identified as material in a comprehensive analysis. This materiality analysis was first conducted in 2018 and has been reviewed annually since then. The guiding principles of the Raiffeisen Group also reflect the Principles for Responsible Banking of the United Nations Environment Programme Finance Initiative (UNEP-FI). The UN Sustainable Development Goals relevant to Raiffeisen are included in the Bank's own guiding principles too.

UN Sustainable Development Goals

The UNO Sustainable Development Goals (SDGs) are mainly aimed at countries. However, they also call on all players around the world to do their bit for sustainable development. As one of the banks with a very high market share in real estate financing, Raiffeisen wishes to make its contribution. The portfolio of properties financed by Raiffeisen causes around one-quarter of the CO2 emissions in Switzerland from real estate. Raiffeisen is therefore affected in particular by SDG 7 (affordable and clean energy) and SDG 13 (climate action). Since protecting the climate is a very important issue for Raiffeisen, it will be looking into the SDGs mentioned in depth during the course of the current year.
The Raiffeisen sustainability strategy is laying the groundwork for boosting its sustainability performance. In particular, this means building on positive effects and reducing negative ones.

Reporting on the guiding principles for sustainability

Below, Raiffeisen presents the progress made during the year under review on implementing its sustainability strategy in line with its ten guiding principles. In accordance with the disclosure standards of the Global Reporting Initiative (GRI), we explain the objectives Raiffeisen is pursuing as regards the guiding principles derived from the issues that are material, what actions were taken during the year under review and who is responsible for them. A range of metrics shown in this chapter and in the separate Supplement to the Annual Report 2021 make it possible to assess the impact Raiffeisen is having on the issues seen as relevant from the sustainability perspective.

Set strategic goals

To be able to boost one's sustainability performance effectively and efficiently, goals are required. Raiffeisen has therefore set specific targets for the guiding principles of the sustainability strategy:
Guiding principleStrategic goals
Set strategic goalsThe key topics, goals and measures from a sustainability perspective are reviewed annually in consultation with the stakeholders.
Strengthen governanceSustainability management in line with ISO 26000 is established at the Group level by 2021.
Involve external stakeholdersRaiffeisen is involved in the sustainability initiatives and organisations of relevance
to the Bank.
Ensure transparencyAnnual sustainability publication in accordance with recognised standards. In compliance with Global Reporting Initiative (GRI) “comprehensive” standard, Task Force on Climate-­Related Financial Disclosures (TCFD), United Nations Environment Programme Principles for Responsible Banking (UNEP-FI) since 2020.
Observe the legal frameworkNo breaches of regulations and voluntary code of conduct in connection with product and service information, money laundering, corruption, tax offences, liquidity requirements, customer privacy, discrimination.
Ensure long-term economic successRaiffeisen cooperative capital receives a fair interest rate.
Raiffeisen has a very good credit rating.
Create sustainable products and servicesConduct a systematic ESG audit of all Raiffeisen products and services and disclose
all relevant ESG information from 2022 onwards.
Continually strengthen the range of proven sustainable products and services.
Maintain open and fair interaction with customersAnnual customer survey shows high satisfaction in relation to fairness and transparency.
Mitigate climate changeRaiffeisen sets itself science-based climate goals.
Raiffeisen will reach net zero CO2 emissions by 2050; in business operations, net zero will be reached by 2030.
Promote employee
expertise and diversity
Assessment of the need for development of all Raiffeisen employees and at company level.
Raiffeisen measures and reinforces the diversity of its employees across all management levels.
During the year under review, the stakeholders consulted in the annual review confirmed the issues and sustainability targets identified as material.

Strengthen governance

Effective sustainability management requires adequate organisational structures, processes and responsibilities. The responsibilities for sustainability are spread across the Raiffeisen Group. Raiffeisen Switzerland has responsibility at Group level for the strategic direction when it comes to sustainability. It takes sustainability factors into account in risk management and continues to develop the range of sustainable financial products. Raiffeisen Switzerland carries out the portfolio management for asset management mandates and deals with external stakeholders and the general public regarding sustainability issues. Raiffeisen Switzerland also provides advice to the Raiffeisen banks on sustainability matters.
Sustainability issues concerning the Group are addressed by the Board of Directors of Raiffeisen Switzerland and all of its committees. The Executive Board of Raiffeisen Switzerland takes account of requirements defined by the Board of Directors. The Corporate Responsibility & Sustainability department reports to the Chairman of the Executive Board of Raiffeisen Switzerland. It is primarily responsible for strategic issues as well as sustainability management at the Group level and is accountable for the sustainability reporting. It acts as an internal and external point of contact and implements strategic projects that create momentum and boost sustainability performance. Corporate Responsibility & Sustainability reports to the Executive Board at least twice a year and reports to the Strategy Committee of the Board of Directors and the Board of Directors of Raiffeisen Switzerland.
Governance of sustainability management in the Raiffeisen Group was further strengthened during the year under review:
  • To formalise governance, Raiffeisen Switzerland prepared and published a manual entitled “Managing Corporate Responsibility and Sustainability in the Group” during the year under review, which was checked by an external agency called INTEP. The manual is largely based on ISO 26000, a standard that cannot be certified, and sets out the framework, processes and responsibility for managing sustainability across the Group. The 219 Raiffeisen banks put sustainability into practice at the local level within this framework.
  • To strengthen responsible business activity, the Board of Directors of Raiffeisen Switzerland has been formulating explicit rules once a year since 2020. In particular, Raiffeisen Switzerland seeks to avoid being linked to serious negative impacts on the environment and society through transactions such as lending, issuing securities and trading in precious metals or through relationships with suppliers. The corresponding due diligence process introduced at Raiffeisen Switzerland in 2021 provides for the option to escalate matters to the Executive Board. It will be rolled out to the whole Group in 2022. Corporate Responsibility & Sustainability has been involved in product launch processes since the year under review, in order to systematically review environmental and social impact when new products and services are launched.

Involve external stakeholders

Regular and open dialogue with stakeholders is extremely important to Raiffeisen. Thanks to their cooperative structure, the Raiffeisen banks are very close to their customers and their local roots mean they have close relationships with local players and regularly exchange views. At the level of Raiffeisen Switzerland, the internal and external stakeholders that are most important for boosting sustainability performance are invited to a discussion at least once a year. As part of this, the main issues and the strategy were once more reviewed and confirmed in 2021. Strategic ambitions such as focusing the investment business on sustainability, sustainability management according to ISO 26000 and the introduction of a due diligence check were welcomed. Like Raiffeisen itself, the various stakeholders regard issues like biodiversity and human rights as future challenges. Raiffeisen looked into both of these issues in depth during the year under review. The Group sustainability management manual deals with respect for human rights. Loss of biodiversity was analysed from the risk perspective for the first time.

National and international organisations and initiatives

Raiffeisen Switzerland has institutionalised its exchange with various stakeholders via memberships in national and international organisations and initiatives, among other measures. Raiffeisen Switzerland is a member of the following organisations: Swiss Sustainable Finance, the Swiss sustainable business association öbu, the Swiss Climate Foundation, the Green and Sustainable Finance Committee of the European Association of Co-operative Banks and Swiss Better Gold Association. To boost sustainability performance and make it possible to attain the strategic sustainability targets, in 2021 Raiffeisen signed the Principles on Responsible Banking (PRB) of the United Nations Environment Programme Finance Initiative (UNEP-FI). In addition, Raiffeisen takes account of the recommendations of the TCFD and joined the Partnership on Carbon Accounting Financials (PCAF) in 2021. This gives Raiffeisen strategic and operational momentum to affirm strategic commitments and reinforce the directions in which it is heading, especially in terms of climate change and reporting obligations.

Local involvement

Having local roots and the associated exchange with and support for local stakeholders in business, culture and sport are a fundamental principle of the Raiffeisen Group and shape the Raiffeisen Group's decentralised business model. Working together supports the goal of a sustainable Switzerland and has a positive impact on the daily lives of customers and external stakeholders. This approach is especially apparent in our sponsorship commitments and the donations we make and strengthens the Raiffeisen brand across the whole of Switzerland. It can be seen, for example, in the fact that we support some 20,000 young skiers. Raiffeisen is also strongly committed to the Swiss Museum Pass, which grants free access to more than 500 partner museums. The Raiffeisen Group's sponsorships amount to roughly CHF 23 million per year. Economic, social and cultural contributions and donations amount to an additional roughly CHF 6 million. Since 2017 Raiffeisen has also provided a free project and donations platform for local projects, lokalhelden.ch. By the end of 2021 almost CHF 30 million in donations had been raised over lokalhelden.ch for more than 1,700 projects. Raiffeisen also wants to enable its employees to get directly involved in cultural, sporting and social causes. Raiffeisen, therefore, gives its employees time to participate in public services during working hours, in line with the employment regulations and after consulting their line manager.

Transparent party financing

As in previous years, Raiffeisen once again contributed to a healthy Swiss political system through its party financing in the year under review. The funding model is transparent: Raiffeisen contributes a total of CHF 246,000 annually to all parties represented in the Swiss Federal Assembly. The money is split equally between the National Council and the Council of States and is divided between the parties according to the number of seats. This takes account of the equivalence of the two chambers as well as the federal/decentralised system of government in Switzerland. The parties have no accountability obligations in relation to the use of the funds. The payment is not linked to any political goodwill or voting behaviour.

Ensure transparency

Transparency is vital for the cooperative Raiffeisen Group. Raiffeisen sets itself high standards in the reporting of its sustainability performance. In addition to the standards of the GRI's “comprehensive” option, to which Raiffeisen has been committed since 2018, since 2020 Raiffeisen has also incorporated the UNEP-FI Principles for Responsible Banking and the the TCFD The GRI content index with selective additional information as well as the disclosure in line with the TCFD and an interpretation based on the Principles for Responsible Banking can be found in the separate Supplement to the Annual Report 2021.
Moreover, Raiffeisen is committed to the AA-plus quality label for e-banking introduced by the "Access for All" foundation as well as the European Transparency Code for sustainability funds, which provides specific standards and transparency guidelines in the area of sustainability.
The improved sustainability performance and transparent reporting about it are paying off. In the second sustainability study of the 15 largest retail banks in Switzerland carried out by WWF Switzerland in collaboration with PricewaterhouseCoopers AG(PwC), the Raiffeisen Group was ranked as one of the leaders and described as "up-to-date" in its sustainability, even though the criteria for the review were stricter than in the first study. Moreover, Raiffeisen was for the first time rated "Prime" for ESG by the sustainability agency of Institutional Shareholder Services, putting it in the top decile of the peer group. The rating is based on information disclosed by Raiffeisen Switzerland for the whole Group.

Observe the legal framework

Raiffeisen is a cooperative enterprise focused on the Swiss market and respects the legal system in Switzerland, human rights, fundamental environmental standards and the principles of the market economy.

Compliance

The banking industry in Switzerland is highly regulated. The Raiffeisen Group bases the implementation of regulatory requirements on financial sector laws, standards and guidelines. All employees are primarily personally responsible for driving compliance and avoiding compliance risks in their line of work within the framework of applicable policies and processes. They notify the competent Legal & Compliance area of Raiffeisen Switzerland or the responsible compliance officer in their Raiffeisen bank of any deficiencies. Risks are identified, assessed and documented. The management mechanisms required are defined. The Legal & Compliance area of Raiffeisen Switzerland monitors changes in legal risks across the Group and reports the material legal risks to the Executive Board of Raiffeisen Switzerland and the Risk Committee every half-year and to the full Board of Directors of Raiffeisen Switzerland every year.

Anti-corruption

The regulator ascribes a particularly high level of importance to the fight against corruption, money laundering and terrorism financing. Corruption undermines the rule of law, promotes inefficiency and distorts competition. The Raiffeisen Group seeks to stop corruption by taking preventive measures. Anti-corruption responsibilities are defined at all levels of the hierarchy, are enshrined in internal policies and assumed within the business areas of the individual Raiffeisen banks. Strict internal policies govern business relationships with politically exposed persons, the combating of money laundering and terrorism financing, and adherence to laws in the area of economic and trade sanctions. Raiffeisen Switzerland and the Raiffeisen banks are responsible for taking action to prevent money laundering. Every Raiffeisen bank has a compliance officer as well as an anti-money laundering officer. They receive annual training from Raiffeisen Switzerland and are also professionally supported in their work. If money laundering and/or terrorism financing is suspected, the Raiffeisen banks report to the Money Laundering Reporting Office in consultation with Raiffeisen Switzerland. Raiffeisen Switzerland coordinates all further steps and supports the Raiffeisen banks with the implementation of the necessary measures. All employees of Raiffeisen Switzerland and the Raiffeisen Pension Fund as well as all members of supervisory bodies are issued internal guidelines on conflicts of interest and active and passive bribery as part of the employment regulations. New employees are trained accordingly. The Raiffeisen banks either adopt Raiffeisen Switzerland's approach or develop an equally effective alternative approach of their own. Anti-corruption strategies and measures are also communicated to business partners who supply goods and/or services to Raiffeisen. The chairs of the executive boards of the Raiffeisen banks regularly conduct analyses of money laundering and terrorism financing risks according to Raiffeisen Switzerland guidelines and provide their analyses to Raiffeisen Switzerland. Legal & Compliance of Raiffeisen Switzerland monitors the development of these risks across the entire Group and reports material risks to the Risk Committee and Board of Directors of Raiffeisen Switzerland every quarter.

Procurement

During the year under review, Raiffeisen strengthened its supplier code, which forms part of the new internal regulations on responsible business conduct. The code sets out Raiffeisen's expectation that suppliers, their employees and all sub-contractors and their employees will comply with the principles laid down in it. This applies to child labour in particular. No children under the age of 15 should be employed and child labour is not accepted at sub-contractors or suppliers.
Wherever possible, Raiffeisen's supply chain is based in Switzerland, both in terms of third-party financial products and in terms of procurement for its banking operations. Raiffeisen sells third-party financial products alongside its own solutions. Third-party products include investment funds, structured products and direct investments. The most important procurement items used to operate the branch network are real estate, IT hardware and software, services, furnishings and vehicles.
Raiffeisen reviews compliance with the legal framework based on selected indicators (see table below). Raiffeisen views the results for the year under review as positive and does not believe that there is an urgent need for action.

Responsible business activity

GRI indicator2021
Social compliance
Significant fines and non-monetary sanctions for non-compliance with laws and/or regulations in the social and economic areaGRI 419-10
Anti-corruption
Total number and percentage of Raiffeisen banks and branches that have implemented mechanisms to detect corruptionGRI 205-1100%
Significant risks related to corruption identified through the risk assessmentGRI 205-10
Total number and nature of confirmed incidents of corruptionGRI 205-30

Ensure long-term economic success

The Raiffeisen Group, as Switzerland's third-largest banking group, employs over 11,000 people, pays salaries, pension fund contributions and taxes, and supports charitable organisations and initiatives. The Group also contributes to creating value locally, regionally and nationally through its financial products and services and through procurement. Cooperative members, customers and society benefit from this. Cooperative members receive particularly favourable terms for certain banking transactions and enjoy other benefits. Raiffeisen employees receive fair, competitive wages. The pension fund aims to maintain a funding ratio of at least 100% and has adopted actuarial assumptions that will ensure secure, reasonable pensions for present and future generations. The Raiffeisen Group pays local, cantonal and federal taxes throughout Switzerland. Raiffeisen does not receive any public funds and does not benefit from government guarantees. By targeting long-term economic success, Raiffeisen strives to be a reliable, long-term partner for its stakeholders. The issues associated with Raiffeisen's economic performance are diverse and are managed by various units within the Raiffeisen Group.
The cooperative Raiffeisen Group operates on the principle of targeting long-term, sustainable results and is not focused on maximising profit and growth at all cost. The focus on long-term, sustainable results and the fact that economic performance is achieved in a decentralised manner by the Raiffeisen banks and Raiffeisen Switzerland are directly related to the Raiffeisen Group's business model, which is based on the autonomy of the Raiffeisen banks. As the statement of net added value shows, the Raiffeisen Group's economic performance in the year under review should be viewed positively.

Statement of net added value

CHF millionPercent
2020202120202021
Creation of added value
Corporate performance (= operating result)3,0603,383100.0100.0
General and administrative expenses-480-50315.714.9
Extraordinary income690.20.3
Extraordinary expenses-2-1-0.1-0.0
Gross added value2,5842,88884.485.4
Value adjustments on participations and depreciation and amortisation of tangible fixed assets and intangible assets-274-21796.4
Changes to provisions and other value adjustments and losses -2-30.10.1
Net added value2,3082,66875.478.9
Distribution of added value
Personnel (salaries and employee benefits)1,3371,39257.952.2
Cooperative members (paym. of interest on certif.: proposal to AGM)65672.82.5
Government1191835.26.9
of which capital and income taxes1301445.65.4
of which formation/release of provisions for deferred taxes-1139-0.51.5
Bolstering of reserves (self-financing)7871,02634.138.5
Distributed added value2,3082,668100.0100.0
Statement of net added value – key figures
unit20202021
Gross added value per personnel unit in 1000 CHF11,000 CHF275301
Net added value per personnel unit in 1000 CHF11,000 CHF246278
Personnel units (average)number9,3939,610
1 Calculated based on the average number of employees. Data basis: key figures in the financial report. For the calculation method, also refer to footnote 1 of the table with the key figures of the Raiffeisen Group in the "Employees" section of the management report.

Create sustainable products and services

Environmental and social factors affect risks and simultaneously represent opportunities. The Raiffeisen Group gives these factors due consideration when developing its financial products and services and simultaneously responds to growing customer needs for sustainable products and services.

Raise customer awareness in the mortgage business

To get a good picture of customer needs with regard to new products and services, every year since 2011 Raiffeisen has conducted a survey on energy and climate issues, the "Customer Barometer on Renewable Energies". In 2021 this representative survey was carried out among the Swiss population together with the University of St. Gallen and SwissEnergy. Among other things, the main results indicate that protecting the climate remains an important concern for nine out of ten people surveyed. A large proportion of those surveyed are willing to invest in environmentally friendly heating systems, photovoltaic (PV) installations or e-mobility.
Raiffeisen considers its role in promoting sustainability in the mortgage business to primarily consist of raising client awareness of the potential to increase energy efficiency and reduce CO2 emissions as well as to identify appropriate financing solutions. Raiffeisen was the first bank to systematically integrate the energy efficiency evaluation of properties into the mortgage advice business. Customers can use this to obtain an overview of their property's energy efficiency. Raiffeisen's modernisation planner RAImo allows them to identify any investment backlog and simulate renovation scenarios. In 2021, Raiffeisen also supported SwissEnergy's Renewable Heating programme. This federal programme pursues the goal of helping private homeowners switch to renewable heating systems with neutral and professional advice. As a strategic partner, Raiffeisen provides relevant financial expertise. In addition, Raiffeisen banks and branches offer customers low-cost thermal imaging and analyses for the purpose of identifying energy conservation opportunities.

Awareness-raising tools and initiatives

201920202021
Energy-efficient renovation and climate compatibility
GEAK® Plus certificates subsidised in the current year11464630
Thermal imaging performed in campaigns concluded during the current year11,3007,8007,400
e-Valo energy efficiency consultations for real estate21,7951,1231,969
Raiffeisen modernisation planner (RAImo)3001,882
1 Programme ended at Group level; some Raiffeisen banks are continuing it individually.
2 Fewer advisory sessions held in 2020 because of the pandemic.
3 The Raiffeisen modernisation planner was launched as a new digital offering in the housing ecosystem in March 2021.

Environmental and social compatibility of corporate clients

Raiffeisen is also raising awareness of the issue of sustainability in the corporate client business. For four years, Raiffeisen has been handing out regional entrepreneurship awards, which have attracted applications from more than 160 SMEs. From the selected finalists, the jury picks one winner for each prize awarded. Prizes are awarded to companies that have developed a particularly prudent and responsible business model. SMEs that are Raiffeisen members also receive a free initial analysis on potential energy-saving measures from an advisor at the Energy Agency of the Swiss Private Sector (EnAW).
95.6% of Raiffeisen’s corporate clients are domiciled in Switzerland. The over 218,000 corporate clients – predominantly SMEs (– “Client structure” table) on are regulated relatively effectively and efficiently in terms of ecological, social and governance matters. The risk that the business activities of corporate clients will have a serious negative impact on the environment or society is therefore fairly low for Raiffeisen.

Procuring gold responsibly

Raiffeisen offers its customers precious metals like gold and silver. During the year under review, a responsibly sourced and traceable approach was brought in for procuring the gold for all Raiffeisen gold ingots. This makes it possible to precisely trace the source of the gold and attaches importance to companies in the supply chain being environmentally and socially responsible. Customers can access the supply chain information for Raiffeisen gold ingots online.

Sustainable investment and pension solutions

Ever since the launch of the first Raiffeisen Futura funds 20 years ago and the subsequent expansion of the fund offering, Raiffeisen has been consistently providing sustainable investment opportunities for investment and pension funds for its customers. Since 2013, all pension and investment customers have been asked about their sustainability stance and advised accordingly on request in advisory meetings and when their situation is regularly reviewed. In 2019 the range of pension funds switched over to being wholly sustainable. In July 2021 almost the entire fund range moved over to Futura Funds that previously had not been sustainable were merged with existing Futura funds or, in the case of the strategy funds, repositioned with a new name and a sustainable investment policy. As a result, the Futura funds grew from roughly 71% to around 94% of the total volume of all Raiffeisen funds. The volumes in Futura pension and investment funds increased by CHF 4.7 billion in 2021 (including performance). The volumes in the Futura asset management mandates grew by more than 166% to CHF 1.4 billion over the reporting period.
In April 2021 the option was added to the digital asset management app Raiffeisen Rio to invest in a portfolio with an entirely sustainable focus. The launch of Green Energy as a focus topic also allows users of the Raiffeisen Rio app to place a further sustainability focus in their portfolio. More sustainability focus topics will follow.
Raiffeisen works with the independent rating agency Inrate for the sustainability research on which the Futura investment and pension solutions are based.
Raiffeisen's current Futura sustainability approach analyses the ecological and social effects of assets across their entire life cycle. An assessment is made of how willing and able companies are to take effective action to continuously improve their sustainability performance. Allowance is made for the fact that every industry has distinct ecological and social features by applying a corresponding weighting. In addition to a strict list of sustainability requirements, the Futura funds firmly exclude certain risks such as armaments, tobacco, alcohol, nuclear energy and gambling by means of set criteria. Countries too are rated in terms of the environment, society and governance, and specifically declared exclusion criteria are applied. These cover, among other things, use of the death penalty, corruption, economic sanctions and breaches of international agreements. In the Futura Immo fund, properties are assessed based on defined sustainability criteria, including their location quality, housing quality and resource efficiency.
Since autumn 2020, all Raiffeisen Futura investment – funds with an equity stake have made full and active use of voting rights. For Swiss equities the funds follow the recommendations of Ethos, Swiss Foundation for Sustainable Development. For all other stocks the funds follow the recommendations of Institutional Shareholder Services (ISS).
In April 2019, Raiffeisen Switzerland placed the very first sustainability bond on the Swiss capital market for investors. Investors can use it to invest in energy-efficient, low-emission and social housing.
The "Raiffeisen ETF – Solid Gold Responsibly Sourced & Traceable" was launched during the year under review. It invests in gold that is responsibly sourced and traceable and stands for responsible procurement of gold and transparency in the supply chain.
The constant inflow of customer deposits to sustainable investment products and the interest in the sustainable structure of cash flows are also reflected in the indicators for sustainable products and services. They are an endorsement of Raiffeisen's strategy of expanding its range of sustainable products and services. At the same time, Raiffeisen pursues the goal of consistently disclosing relevant sustainability information for products and services. Raiffeisen is comfortable with the cooperation with independent external partners when auditing assets and when exercising voting rights in the investment and pension area and will continue down this path.

Products with specific social and ecological benefits

Unit31.12.201931.12.202031.12.2021
Investment products
Sustainable funds (Futura funds) CHF million7,753.58,725.713,545.8
Share of volume of all Raiffeisen funds percent67.771.694.7
Share of custody account volumepercent20.521.927.9
Development funds1 CHF million252.3194.5171.9
Share of custody account volumepercent0.70.70.4
Structured products with a sustainability focusCHF million12.315.440.5
Raiffeisen Asset management
Volume of sustainable Futura asset management mandatesCHF million253.2535.51,427.8
Shares of all asset management mandatespercent19.222.321.9
Leasing business2
Subsidised leasing in the case of replacement investments for Euro 6 emission standard-compliant lorries CHF million10.75.80.0
Share of total leasing volume for lorriespercent8.67.50.0
Raiffeisen Bonds
Raiffeisen Sustainability Bond3CHF million100.0100.0100.0
1 responsAbility Investments AG investment funds are listed here because Raiffeisen Switzerland is a founding member and shareholder of responsAbility. These numbers refer to the securities held in Raiffeisen clients' custody accounts. They reflect Raiffeisen's performance and responsibility in the sale of responsAbility funds.
2 In 2021 Raiffeisen Leasing increasingly focused on a broader portfolio of assets in sustainable lease financing.
3 0.125% sustainability bond; repaid at par on 7 May 2024.
The Raiffeisen Pension Fund is an independent legal entity that manages the pension deposits of over 10,000 insured persons on a fiduciary basis in compliance with the federal law on occupational pension plans and in consideration of sustainability aspects.

Maintain open and fair interaction with customers

In line with its mission statement, the Raiffeisen Group sets store by fairness, reliability and transparency in business relations with its customers. Raiffeisen therefore maintains skilful, open and fair interaction with its customers. This includes the facts that Raiffeisen products are simple and straightforward and offer value for money and that prices are transparently communicated. This is the only way to ensure that customers can reach well-informed decisions.

Transparency and fairness

Financial services are highly complex. This complexity explains Switzerland's tight regulation of product marketing for financial service providers. These requirements are implemented by Raiffeisen and encourage fairness and transparency. Raiffeisen also engages in self-regulation. The Marketing area of the Raiffeisen Bank Services department and the Advice and Sales area of the Products and Investment Services department are primarily responsible for this topic within the Raiffeisen Group. Foreign regulations are taken into account as needed.
97.6% of Raiffeisen's clients are domiciled in Switzerland. At Raiffeisen, each customer segment is assigned a target product portfolio. Any products and services not included in the portfolio will only be offered to segment customers at their express request. Raiffeisen generally prioritises security over profitability, and profitability over growth. Customer advisors are regularly trained to follow these principles. Thanks to all these efforts, Raiffeisen has managed to provide an understandable product range with fair prices and a high level of transparency. This promotes customer focus, mutual trust and long-term customer relationships. Since 2020, Raiffeisen has regularly surveyed customers to check whether adequate fairness and transparency are ensured and perceived as such by customers. Specifically, this involves asking whether Raiffeisen deals fairly with customers and provides them with information that is transparent and clear, and whether Raiffeisen is perceived as a sustainable and responsible company. The results show that, once again in 2021, Raiffeisen is perceived as being a financial company that is better than average compared to the competition when it comes to sustainability and responsibility. This is the case not just among our own customers, but in the Swiss population as a whole. The aim is to continue to achieve a high level of satisfaction.

Protection of customer data

Special mention must be made of customer privacy when dealing with customers openly and fairly. Banks hold sensitive customer data whose protection is an absolute priority at Raiffeisen. Customers trust their bank to comply with statutory and regulatory requirements, handle data responsibly and protect them as effectively as possible. Since it has overall responsibility for the compliance system, Raiffeisen Switzerland is tasked with centrally protecting customer data within the Raiffeisen Group and operates an information security management system (ISMS) based on the ISO 27001 standard. The purpose of the system is to ensure information integrity, availability and confidentiality at all times. Information security is constantly reviewed and enhanced where necessary. Several projects are conducted each year to strengthen the Group's ability to withstand cyberattacks. Raiffeisen Switzerland also has a data protection officer who oversees the entire Group and ensures compliance with the criteria set out in the Swiss Data Protection Act. Rules on data protection and data security are implemented through internal directives. Customer data requirements conform to the Data Protection Act as well as FINMA stipulations. The Raiffeisen Group constantly adapts its measures to protect customer data to the current situation in a continuous improvement process. In 2021 the filter criteria were extended, among other things. Headcount was increased in the Information Security team, which is responsible for data leakage prevention (DLP). Other channels were also monitored, such as data uploads and files printed out. The introduction of a blocking mode means that emails blocked by DLP have to be deliberately unblocked internally. Mandatory annual training sessions on awareness of information security are revised and carried out regularly.
The surveyed customer satisfaction, the customer complaint process as well as the number of breaches of the relevant provisions point to any deficiencies in the processes. The indicators in the table do not show any urgent need for action on the topic of fairness and transparency in customer relationships.

Responsible business activity

GRI indicator20202021
Marketing and labelling
Total number of incidents of non-compliance with regulations and/or voluntary codes concerning product and service information and labellingGRI 417-200
Total number of breaches in connection with marketingGRI 417-300
Customer privacy
Complaints from outside parties and regulatory bodiesGRI 418-101
Serious incidents registered through internal data leakage prevention (DLP)GRI 418-100
Alarms registered by the internal data leakage prevention systemGRI 418-12,964,5715,939,2531
1 The increase is due to extended filter criteria. DLP alarms are triggered in response to rules based on a scoring system. An alarm does not automatically mean that a regulation has been violated. 

Mitigate climate change

Unchecked greenhouse gas emissions will lead to climate change with serious, irreversible consequences for humanity and the environment. The Raiffeisen Group itself causes CO2 emissions by operating its 820 branches and due to business travel and shipping and the upstream and downstream processes.

Reduction in direct CO2 emissions

The remaining emissions that cannot be reduced, which are caused by operating all the Group branches, by business travel and the upstream and downstream processes, have been offset since 2020. This is done using emission credits (CO2 certificates) from climate protection projects of a recognised external provider (South Pole), which prevent or reduce the emission of CO2-and meet the "Gold Standard". The purchase of CO2 certificates is an investment in projects that could not be implemented without this financing. Raiffeisen supports several projects that promote the transition from fossil fuels to the use of renewable energies and has been rewarded with the label "climate-neutral company" by South Pole.
The Corporate Responsibility & Sustainability department is responsible for the topic and for action on climate change across the Group, and now also runs the Environmental Management unit. This unit is responsible for monitoring the operational environmental indicators for the entire Group and manages the "Pro Futura" incentive programme as well. This programme motivates Raiffeisen banks to introduce measures to reduce CO2 emissions. At the same time, Raiffeisen's internal climate fund subsidises efforts to improve energy efficiency and reduce CO2 emissions. Raiffeisen is striving to only install heating systems using renewable energy in its buildings and to avoid or replace electricity generated using nuclear power or fossil fuels. The statutory emission regulations are observed when purchasing vehicles (for passenger cars, no more than 95 grams of CO2/km). When constructing or modifying buildings, Raiffeisen encourages eco-friendly commuting by providing good access to public transport, for example. As a general rule, Raiffeisen wants to continue reducing its ecological footprint.

Identify and measure financed emissions

Besides emissions caused by building energy and business travel, Raiffeisen also wants to know the extent of the emissions that it finances. At the beginning of 2019, Raiffeisen appointed an external partner, TEP Energy, to assess the impact of its mortgage financing activities on the climate. The analysis showed that the buildings financed by Raiffeisen are responsible for 2.5 million tonnes of CO2 per year. Excluding industrial and agricultural buildings, the figure is around 2.1 million tonnes of CO2 per year. This places Raiffeisen, through the portfolio of buildings financed, slightly below the average of all Swiss buildings in terms of intensity of CO2. The primary reason for the low figure is that the buildings are relatively young and use fossil fuels less frequently due to their locations. Raiffeisen also allowed the emissions generated by its mortgage financing activities to be audited as part of the climate compatibility test launched for the Swiss financial centre by the Swiss Federal Office for the Environment (SFOE) and the State Secretariat for International Financial Matters (SIF) at the end of 2020. The test also showed that a relatively low amount is placed in companies from polluting industries when investing in shares and corporate bonds where Raiffeisen is responsible for the investment decision, at 6% and 2% respectively. All investments in Raiffeisen investment and pension products, asset management as well as in-house investments were analysed.
In 2019, Raiffeisen also reviewed the climate compatibility of its corporate client credit portfolio for the very first time. This pilot analysis was based on the internal assignment of the individual loans in line with the "general methodology for economic sectors" of the Federal Statistical Office (NOGA classification). The analysis was repeated at the end of 2021. It turned out that, according to the NOGA classification, around 1.6% of all corporate loans are issued to companies from CO2-intensive sectors. The analysis covered electricity generation, road transport, air transport, water transport, production of cement, lime and plaster as well as metal production and metalworking. If power generation is excluded, which in Switzerland is not very CO2-intensive, relatively speaking, this leaves only 0.8%, or well below 1%, of the total corporate loan portfolio. No loans were issued to companies that mine coal, extract oil or natural gas, or operate coal-fired power plants, as was also the case in the year under review.

Responsible management

2019202020211
CategoryUnitroundedTotalTotalRaiffeisen Group change to previous year in % per FTE2
Building energykWh68,051,00067,551,00065,636,000-36,583
ElectricitykWh44,162,00043,772,00041,796,000-54,192
Heating energy kWh23,889,00023,779,00023,840,00002,391
Business travelkm16,634,00011,915,0009,718,000-18975
Public transport (rail, bus, tram)km5,952,0002,681,0002,140,000-20215
Road transportkm
Private carskm2,941,0002,059,0001,645,000-20165
Company carskm3,651,0002,648,0002,168,000-18217
Courier deliverieskm3,375,0004,246,0003,406,000-20342
Passenger transport by airkm60,00021,00011,000-481
Air freighttkm655,000260,000347,0003335
Paper and water consumption
Paper consumptiont880751699-70.07
Water consumptionm3147,000144,000131,000-913.00
Greenhouse gas emissions
from energy, travel, paper and water3
t CO2 eq12,95811,35710,812-51.08
Direct GHG emissions (Scope 1)t CO2 eq7,1326,3256,052-40.61
Indirect GHG emissions (Scope 2)t CO2 eq344529613160.06
Other indirect GHG emissions (Scope 3)t CO2 eq5,4824,5034,147-80.42
1 All figures in this table have been rounded to the nearest thousand. This may result in rounding discrepancies.
2 Calculation based on the key figures of the Raiffeisen Group in the "Employees" section of the management report, excluding Group companies. For the calculation method, also refer to footnote 1 of the table with the key figures of the Raiffeisen Group in the "Employees" section of the management report.
3 The important emissions sources are recorded. The three system limits are:
Scope 1: direct greenhouse gas emissions from stationary sources in the company itself, such as heating or own vehicles;
Scope 2: indirect greenhouse gas emissions from energy generation outside the company, such as electricity and district heating;
Scope 3: other indirect greenhouse gas emissions outside the company from upstream and downstream processes, such as business travel by rail or upstream processes involved in supplying energy.
Each key figure recorded is annualised based on the last eight quarters and assigned to the recorded organisational units, based on the full-time equivalents. The next step is the extrapolation of the annualised key figures, aggregated by Raiffeisen Bank. They are generated based on the worst qualities such as "heating oil" for heat production. Greenhouse gas emissions are calculated based on the emission factors of the 2015 indicators of the Verein für Umweltmanagement und Nachhaltigkeit in Finanzinstituten e.V [Association for Environmental Management and Sustainability in Financial Institutions] (VfU). The Raiffeisen Business Owner Centres (RUZ), Immo AG, Valyo Ltd and the former Group business Notenstein La Roche Private Bank Ltd were not considered.
Since 2021, the CO2 emissions financed by the Raiffeisen Group have been measured according to the PCAF standard, and retrospectively for 2020 as well. PCAF is an international corporate initiative to harmonise CO2 accounting in the financial sector. The emissions associated with mortgages, commercial real estate, business loans and unlisted equity are relevant for the Raiffeisen Group. The first two categories are shown in the table. The calculations for loans to corporate clients were performed internally. They were not published in the year under review because the checks on data plausibility had not yet been completed. Raiffeisen is in discussion with PCAF on the matter. The intention is to publish the figures for 2022. The other PCAF categories are not taken into account, as they either are not offered by the Group or represent an insignificant percentage of total emissions. The figures shown must be interpreted in the light of imprecise data and the fact that this is a new type of standard.

CO2 emissions financed according to the standard of the
Partnership for Carbon Accounting Financials (PCAF)

Asset classFinancing
outstanding1
(in CHF millions)
Scope 1 and 2
emissions (t CO2e)
Emission intensity (t CO2e/CHF million)Coverage (%)Data quality score (1 = high, 5 = low)
2020
Mortgages115‘253509‘4004.41004
Commercial real estate73‘696513‘3007,0944
2021
Mortgages119‘140512‘3004.31004
Commercial real estate76‘167524‘1006.9944
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1 Selection and aggregation of outstanding financing based on the PCAF standard. The underlying definitions differ from those normally used by Raiffeisen.

ESG factors as risk drivers

Raiffeisen does not regard environmental, social and governance (ESG) factors as a separate risk category but as drivers of the existing types of risk. This way, ESG factors are integrated into the existing Raiffeisen risk management framework and covered by the risk strategy, risk tolerance and risk policy of the Raiffeisen Group. ESG risk drivers are followed and monitored by Raiffeisen to an appropriate extent and at regular intervals.
Qualitative analysis
In 2020, aided by external consultancy firm ZEB, Raiffeisen subjected the factor of climate change to an in-depth qualitative analysis of its impact on the existing types of risk. During the year under review, again with external support, Raiffeisen carried out this analysis for all other relevant ESG factors; the analysis of loss of biodiversity was especially detailed. The impact analysis showed that further risk quantification is not required for the ESG factors examined. They are either already adequately reflected in risk management or their impact on the existing types of risk is regarded as immaterial for Raiffeisen.
Climate-related financial risks

Promote employee expertise and diversity

Change and cultural change is a major part of the Raiffeisen 2025 strategy. Promoting employee expertise and diversity is also a significant goal of the sustainability strategy. In the year under review, various measures were taken to foster a corporate culture in which diversity and equal opportunities are practised and supported.

Further information

The GRI content index, the disclosures according to the recommendations of the Task Force on Climate-Related Financial Disclosures – handling of climate-related risks and opportunities – as well as reporting in line with the UNEP Principles for Responsible Banking and the PCAF measurements are available as PDF downloads at the following link: