Landsbankinn has received an updated ESG risk rating from Sustainalytics, maintaining its negligible risk position with a rating of 8.5 on a scale to 100. This means that Sustainalytics considers the Bank at negligible risk of experiencing material financial impacts from environmental, social and governance factors (ESG).
Lilja Björk Einarsdóttir, CEO of Landsbankinn:
“We are immensely proud to maintain our status in Sustainalytics’ lowest risk category for the third year running. Landsbankinn intends to continue to lead the field in sustainable banking, not just domestically but also internationally. It is important for us to know how we stand by international standards and Sustainalytics’ ESG risk rating provides that context. In order to be leading and be able to meet possible economic fluctuations, we must ensure sound, long-term operation. This allows us to support the Icelandic economy, the community and industry, and participate in developing and strengthening it. By focusing on sustainability, we tend to the welfare of our employees and key factors in the Bank’s operation. We have achieved good success in ensuring profitability in recent years and, as before, we care about how we achieve that success. We ensure good results by keeping our eye on operations while also being mindful of our impact on the environment and community.”
Aðalheiður Snæbjarnardóttir, Landsbankinn's Sustainability Manager:
“One of our greatest challenges in Landsbankinn’s sustainability work is to communicate and share information in a reliable, transparent and accessible manner to stakeholders. Despite detailed reporting on sustainability, we can’t expect stakeholders to read long and technical reports from the Bank from start to finish. This is one reason why it’s so important to get a solicited ESG risk assessment from an experienced analyst. This guarantees that we’re managing sustainability issues in a prudent manner as regards the Bank’s operation and provides stakeholders with a clear and accessible overview of the management of ESG factors. The result of the assessment also shows our potential exposure to material financial impact from ESG factors.”
More about Sustainalytics’ risk rating
An ESG risk rating evaluates a company’s risk and risk management in relation to environmental, social and governance factors. The methodology evaluates the degree of a company’s unmanaged material ESG risk. The more of this risk that is unmanaged, the higher the ESG risk rating score.
Sustainalytics has issued ESG risk ratings for just under three decades and counts as one of the global rating firms most looked to by investors when assessing corporate ESG risk.
