International and local collaboration is key to success. Through the years, Íslandsbanki has considered it important to participate in international commitments and support domestic cooperative efforts in the area of sustainability.
Íslandsbanki has adhered to the principles in the UN Global Compact on social responsibility since 2009. The Global Compact comprises ten principles in the areas of human rights, labour, environment, and anti-corruption, which create a framework for the Bank's activities. The Bank submits annual progress reports to the UN.
Task Force on Climate-related Financial Disclosures
Islandsbanki became in 2020 the first official Icelandic supporter of the Task Force on Climate-related Financial Disclosures (TCFD). The TCFD has developed a framework to help public companies and other organizations more effectively disclose climate-related risks and opportunities through their existing reporting processes. Islandsbanki‘s pillar 3 report for 2020 includes a section on sustainability and climate-related risk in line with the TCFD recommendations.
View TCFD website
Principles for Responsible Investment
UN PRI is an association of investors, investment funds, and analysts whose objectives to incorporate sound environmental, social, and governance (ESG) criteria into their investment decisions. Iceland Funds has been a party to UN PRI since December 2017
UN Global Compact
Islandsbanki‘s CFO is part of multi-sector group of corporate finance leaders to develop innovative strategies to mobilize finance towards sustainable development. The taskforce is organized and hosted by The UN Global Compact and aims to ensure that companies’ financial strategies are aligned to the Sustainable Development Goals (SDGs).
the Iceland Sustainable Investment Forum
Íslandsbanki was one of the founding members of Iceland SIF in 2017. The purpose of the forum is to increase investors' knowledge of the methodologies of sustainable and responsible investment and to promote discussion of such investment.
Principles for Responsible banking
Íslandsbanki has agreed to comply with the new United Nations principles for responsible banking. The principles, six in all, were developed by 30 international banks in cooperation with the United Nations Environmental Programme - Financial Initiative (UNEP - FI): alignment; impact and target setting; clients and customers; stakeholders; governance and culture; and transparency and accountability. The Bank intends to make a concerted effort to incorporate the principles into its activities and reporting and will explore possibilities for international cooperation in this area.
The Partnership for Carbon Accounting Financials
Íslandsbanki has become a member of The Partnership for Carbon Accounting Financials (PCAF) a global partnership of financial institutions whose objective is to develop and implement metrics for measuring the greenhouse gas emissions associated with their loan and asset portfolios. PCAF focuses on developing and implementing climate metrics that financial institutions can use to analyse the carbon emissions associated with their loans and investments. PCAF uses a science-based approach and sets up metrics that are harmonised internationally.
for a Sustainable Future
The Nordic CEOs for a Sustainable Future initiative consisting was founded in 2018. The objective is to integrate the UN Sustainable Development Goals in their respective business strategies and create a forum for the exchange of experiences and exploration of shared initiatives. The initiative also creates a platform for the Nordic Prime Ministers to engage directly with CEOs on how to move from sustainability as a compliance exercise to purpose-driven companies. Collectively, the companies operate across industries representing revenues of more than EUR 115 billion and 170,000 employees worldwide.
In July 2020, the CEOs met virtually with Katrín Jakobsdóttir, Prime Minister of Iceland, and Erna Solberg, Prime Minister of Norway, to address how their companies are taking action on climate and diversity, and to discuss opportunities for collaboration and government actions for accelerating the different measures. The discussion with the Prime Ministers was a follow-up of the previous meeting between the parties last August in Reykjavik, Iceland, when they made a public statement about their shared vision for achieving the United Nations Sustainable Development Goals (SDGs). The focus is set on advancing action on climate change and promoting diversity and inclusion aligned to SDGs 5, 12, and 13 through greater public-private sector collaboration.
Icelandic Centre for Corporate Social Responsibility
Festa was established in 2011 by Íslandsbanki, Landsbankinn, Landsvirkjun, Rio Tinto Alcan Iceland, Síminn, and Össur. Its role is to enhance knowledge about firms' and institutions' social responsibility so as to encourage the adoption of socially responsible practices and promote increased sustainability. Íslandsbanki has also signed the climate declaration of Festa and the City of Reykjavík from 2015.
Net-Zero Banking Alliance
Íslandsbanki was in April 2021 a Founding Member of the Net-Zero Banking Alliance. The industry-led, UN-convened Net-Zero Banking Alliance brings together over 100 banks worldwide representing over 40% of global banking assets, which are committed to aligning their lending and investment portfolios with net-zero emissions by 2050.
