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.

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

Sustainability objectives through 2025

Secondary objectives for 2022

Relation to SDGs

Achieve full carbon neutrality no later than 2040*

40% decline in operations-related carbon footprint from 2019-2022

Present officially validated science-based targets for short- and medium term financed emissions

Climate action

Offer our customers green and sustainable products

Lend additional 40 bn ISK sustainable loans

Further increase customer access to and awareness of sustainable savings options

Quality education

Gender equality

Industry, innovation, and infrastructure

Climate action

Encourage equality and inclusion through products and services**

Identify opportunities to empower women or disadvantaged target group through product offering, education programs and other services

Enhance tracking of lending to SMEs that fit the SFF Social Project category of Equality and empowerment

Gender equality

Further increase diversity and inclusion in the workplace**

Establish a diversity council (jafnréttisráð) and host at least eight diversity focused training events

Bring the share of women employees to 25% in investment banking and 30% in IT

Quality education

Gender equality

Work with suppliers and partners that champion sustainability

Meet with >10 key suppliers to discuss sustainability performance and emission reduction targets

Incorporate sustainability performance as a minimum 10% weight into all formal tender processes

Quality education

Gender equality

Industry, innovation, and infrastructure

Climate action

Assess sustainability risk, define responsibility, and increase information disclosure

Disclose scope 1, 2 and 3 GHG emissions in 2021 to the Carbon Disclosure Project (CDP)

Increase % of ESG assessed credit exposure from 34% to 70% (excluding lending to individuals and small enterprises which are not in scope)

Quality education

Gender equality

Industry, innovation, and infrastructure

Climate action

Place special emphasis on four of the UN SDGs

Run a refined sustainability calendar engagement with employees throughout the year

Aim for >60% participation in Helping Hand volunteering program, encouraging link to the SDGs

Quality education

Gender equality

Industry, innovation, and infrastructure

Climate action

*Updated objective approved by the Board of Directors in April 2021

**To reflect increased focus on products and services that support equality and inclusion the 2025 objectives related to social factors have been reviewed