Landsbankinn’s new sustainable finance framework
The framework has been reviewed by international rating agency Sustainalytics, a leader in the field of ESG ratings. It sets out clear criteria for the definition of sustainable projects and ensures transparency. Around 30% of the Bank’s lending portfolio already fits the parameters of the framework.
Lilja Björk Einarsdóttir, CEO of Landsbankinn: “It is important to us to be a leader in sustainability. We now have a sound and standardised finance framework which will stand us in good stead as a provider of sustainable financial services. Landsbankinn is an ever smarter bank and our journey, which began with a focus on equality and the environment, has now matured into a comprehensive sustainability platform, a framework for all kinds of financial service. In the future, our customers will place increased weight on understanding the connection between capital and sustainability. Our aim is to use the framework to simplify life for our customers by providing better information.”
More about the sustainable finance framework
The sustainable finance framework is based on ICMA’s guidelines and the EU’s recent taxonomy for sustainable financing, which is expected to become the standard in sustainable finance. The framework was developed by an interdisciplinary group of the Bank’s experts.
Emphasis on sustainability
In 2020, Landsbankinn received excellent reviews in ESG risk ratings by Sustainalytics and Reitun. An ESG risk rating considers corporate responsibility and sustainability in our operation; more precisely, environmental, social and governance factors. Sustainalytics ranked us 2nd out of 382 banks operating in Europe, who were analysed by Sustainalytics. These results testify to our sincere efforts in this field over the course of several years.
We participated in the development of PCAF’s recently launched carbon accounting method for financial undertakings, alone among Icelandic banks. We are actively working towards three of the UN's Sustainable Development Goals (SDGs) and new Principles for Responsible Banking from UNEP-FI. We have taken on extensive obligations under the UN Global Compact, UN PRI, and recently signed the Declaration of Intent on Funds for the Maintenance of Sustainable Development, to name a few of the initiatives we participate in.