Arion Bank’s sustainability policy
We want to act as a role model in responsible and profitable business practices, taking into account the environment, the economy and the society in which we live and work. We try to see things from our customers’ viewpoint and strive to do better today than we did yesterday.
We work in an attractive workplace where knowledge creates future value for the benefit of our customers, investors and society as a whole.
The diagram to the side shows the key stakeholders and main sustainability focuses
Annual and Sustainability Report 2024.png)
Our commitment to sustainability
- Commitment at the end of 2023 to get our climate targets validated by the Science Based Targets initiative (SBTi) within two years.
- Member of UN-convened Net-Zero Banking Alliance (NZBA), a global group of banks, since December 2023.
- Signatory to Principles for Responsible Banking (UN PRB) since September 2019
- One of the founding members of a joint business and government forum on climate issues and green solutions, Green by Iceland, in September 2019
- Equal pay certification from the union VR since 2015 and equal pay symbol from the Ministry of Welfare since 2018
- Signatory to Principles for Responsible Investment (UN PRI) since 2017
- Founding member of IcelandSIF, Iceland Sustainable Investment Forum
- Signatory to UN Global Compact, the UN’s initiative on sustainability since 2016
- Signatory to the City of Reykjavík and Festa’s Declaration on Climate Change since 2015
- Recognized as a company which has achieved excellence in corporate governance by the Center for Corporate Governance since 2015
- Signatory to Women’s Empowerment Principles (UN Women) and the UN Global Compact since 2014
- Partner of Festa, a sustainability centre
Environment and climate policy
We aim to be a role model on environmental and climate issues and to minimize greenhouse gas emissions and the negative environmental impact of our activities. Man-made climate change is one of the greatest challenges of our time and it is critical that global warming is restricted to below 1.5 degrees Celsius.
We are committed to helping Iceland meet its obligations under the Paris Climate Agreement and other local and international environmental and climate agreements. We support Iceland’s ambitious plans to have net zero emissions by 2040, and the Bank aims to be net zero itself the same year.
Banks perform a vital role in funding progress and our focus is on funding projects on sustainability and green development. We also require our suppliers to consider the environmental and climate impact of their activities.
We are setting ambitious targets and will publish the results of our progress in areas where we have the greatest impact, such as buying, our own activities, lending and the Bank’s investments. We endeavour to enhance our employees' knowledge and understanding of environmental issues and to support our customers' journey towards a green future in accordance with the UN Sustainable Development Goals.
Publication
The Road to Net Zero – Arion Bank's updated climate targets up to 2030
Impact and Allocation Report 2024
Arion Bank Annual and Sustainability Report 2024
Financed emissions and emissions reduction targets of Arion Bank
Sustainability policies in different sectors and exclusion list
Arion Bank’s Sustainability Policy on Seafood
Arion Bank’s Sustainability Policy for the Arctic
Arion Bank’s Sustainability Policy on Industry, Energy and Manufacturing
Arion Bank’s Sustainability Policy on Agriculture
Arion Bank’s policy on recalculating greenhouse gas emission
Sustainable financing framework
Arion Bank’s Sustainable Financing Framework
COWI’s report on green mortgages
Sustainable finance disclosure at Arion Bank and the taxonomy for sustainable investment
Act No. 25/2023 on Sustainable Finance Disclosure transposed two EU regulations into Icelandic law. Firstly, the Sustainable Finance Disclosure Regulation (SFDR); and secondly the regulation on the establishment of a framework to facilitate sustainable investment (Taxonomy Regulation).
The SFDR covers harmonized regulations for financial market participants and financial advisers concerning sustainability‐related disclosures in the financial services sector. The regulation requires that financial market participants and financial advisers publish information on how sustainability risk is incorporated into investment decisions and financial advice, and whether, and in such case how, the negative material impact on sustainability is taken into account. SFDR defines sustainability risk as an environmental, social or governance event or condition that, if it occurs, could cause a negative material impact on the value of the investment.
Arion Bank is considered to be a financial market participant and financial adviser as defined in SFDR and the Bank is currently implementing the legislation.
Further information on Arion Bank's sustainability disclosures in financial services and the classification system for sustainable investments can be found here.