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 2022

Our commitment to sustainability

  • 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 domestic and international environment and climate treaties and to reach the ambitious goal of a carbon neutral Iceland by 2040.

Banks perform a vital role in providing financing for progress and our focus is on funding projects on sustainability and green infrastructure.

We also require our suppliers to consider the environmental and climate impact of their activities. When comparing similar offers from suppliers, environmental and climate considerations will be decisive in our decision. The Bank’s goal is to reduce emissions of carbon dioxide and other greenhouse gases from our activities by at least 55% by 2030 from the base year 2015 and to carbon offset all remaining emissions.

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 and the services we provide to our customers. 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.

Targets up to 2030

  • In 2022 we will set a target on green loans as a percentage of total loans up to 2030.
  • In 2022 we will adopt a policy concerning those sectors which have the greatest impact on our loans, taking into account environmental and climate considerations.
  • We will ask our main suppliers about the environment and climate impact of their activities.
  • In 2022 we are going to start measuring the carbon footprint of our loan portfolio in accordance with PCAF. Once we have obtained a clear picture of the loan portfolio’s carbon footprint, we will set ourselves a target on how to reduce the footprint up to 2030 in accordance with the objectives of the Paris Climate Agreement.
  • From 2023 the Bank will no longer buy vehicles which do not run on 100% renewable energy.
  • We intend to increase the ratio of sorted waste produced by the Bank to 90% by 2023.
  • The Bank’s goal is to reduce emissions of carbon dioxide and other greenhouse gases from our activities by at least 55% by 2030 compared with 2015 and to carbon offset all these emissions.

Code of conduct for suppliers