Sustainability Policy and goals

Íslandsbanki’s Sustainability Policy aims at making the Bank a model of exemplary operations in the Icelandic business community and a catalyst for positive social action, moving Iceland forward by empowering its customers to succeed.

Íslandsbanki Sustainability Policy


Íslandsbanki’s Sustainability Policy aims at making the Bank a model of exemplary operations in the Icelandic business community, based on internationally recognised environmental, social, and governance (ESG) criteria.

The Bank aims to be a leader in the area of sustainable development and a catalyst for positive social action, moving Iceland forward by empowering its customers to succeed.

To this end, the Bank intends to initiate broad collaboration on responsible business practices that both contribute to sustainable development in the Icelandic economy and support the Icelandic Government’s Climate Action Plan, while also supporting the UN Sustainable Development Goals.

Íslandsbanki's objective is to be a model of exemplary operations


Íslandsbanki’s objective is to be a model of exemplary operations within the Icelandic business environment. In its operations, the Bank considers not only its financial objectives relating to profit and efficiency, but also the ESG criteria:

  • Environmental criteria focus on how Íslandsbanki monitors the environmental impact of its activities and how the Bank supports, among other things, the SDG on climate action.
  • Social criteria centre on how the Bank behaves towards employees, suppliers, customers, and the community in which it operates. In this way, the Bank supports, among other things, the SDGs on Quality Education; Gender Equality; and Industry, Innovation, and Infrastructure.
  • Governance criteria centre on the Bank’s Board and Directors, as well as its internal control and the rights of shareholders.

Íslandsbanki as a positive force in society


Íslandsbanki seeks to set a positive precedent by having its actions do the talking, thereby gaining and maintaining customers’ trust. The Bank aims to communicate actively with customers and collaborators concerning responsible business practices, which is one of the keys to ensuring that Íslandsbanki is a positive force in society.

Seven sustainability goals for 2025


Measurable and timed targets will be set on an annual basis for each goal

Sustainability objectives through 2025

Secondary objectives for 2021

Relation to SDGs

Carbon-neutral operations

33% decline in operations-related carbon footprint from 2019-2021 (50% reduction from 2019-2024) 

Complete first round of assessment of “financed emissions” based on available data in accordance with PCAF standard 

Climate action

Offer our customers green and sustainable products

Complete the classification of the current loan portfolio based on the sustainable financial framework, set target for increase 

Market at least three new sustainable products, including two in H1/2021 

Quality education

Gender equality

Industry, innovation, and infrastructure

Climate action

Balance gender ratios through all of the Bank‘s operations

Ensure that gender ratio in the Bank’s management team is always 40:60 or better 

Action plan and quantifiable targets to increase the number of women in investment banking and IT 

Gender equality

Diversity and inclusion

Assess diversity using the Equileap took in cooperation with Nordic CEOs for a Sustainable Future. 

After measuring, prepare an action and education plan for diversity and inclusion. 

Quality education

Gender equality

Work with suppliers and partners that champion sustainability

Meet with 20 large suppliers each year and steadily increase emphasis on sustainability. 

Formulate procedures to ensure compliance with the Suppliers’ Code of Conduct and respond to incidents that arise. 

Quality education

Gender equality

Industry, innovation, and infrastructure

Climate action

Assess sustainability risk, define responsibility, and increase information disclosure

Sustainability risk assessment based on ESG criteria incorporated into the formal procedures for granting large loans. 

Publish sustainability information for 2020 in accordance with TCFD criteria.  

Quality education

Gender equality

Industry, innovation, and infrastructure

Climate action

Place special emphasis on four of the UN Sustainable Development Goals

Implement a sustainability calender in support of the Global Goals and aim for >60% participation in Helping Hand. 

Base allocations from the Entrepreneurship Fund on UN Global Goals and update the grant policy to reflect the Goals. 

Quality education

Gender equality

Industry, innovation, and infrastructure

Climate action