Landsbankinn updates its Sustainable Finance Framework
The Framework has been verified 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. To date, the Bank has issued green bonds in the total amount of EUR 900 million under its Sustainable Finance Framework.
Lilja Björk Einarsdóttir, CEO of Landsbankinn:
“It is important to us to be a leader in sustainability. The Bank’s green bond issuances under the Framework have been extremely successful and we register the market demand for clear, reliable and standardised disclosure on sustainability. This update fulfils stringent requirements that apply to sustainability information. A sound Framework is important to the Bank’s funding.”
More about the update
The update to the Framework complies with the requirements of the Green Bond Principles, the Social Bond Principles and the Sustainability Bond Guidelines. The categories defined in the Framework are compared with the requirements of the EU Taxonomy. International rating agency Sustainalytics has concluded that of the projects deemed eligible under the Framework, 59 categories are defined in the Taxonomy and 46 categories are aligned, 6 are partially aligned and 7 do not meet Taxonomy requirements. Another change is that the updated Framework provides for housing mortgages that meet energy consumption standards based on a methodology published to the Bank’s website along with the Framework.
Leading in sustainability
Landsbankinn has received excellent ESG risk ratings in the past five years from rating agencies Sustainalytics and Reitun. Sustainalytics’ most recent ESG risk rating considers the Bank at negligible risk of experiencing material financial impacts from ESG factors. The Bank scored 8.5 and ranks in the top 1% of banks operating in Europe who were reviewed by Sustainalytics. Landsbankinn also received an excellent score in Reitun’s newest ESG risk rating, or 90 out of 100 in class A3.
The Bank annually publishes detailed sustainability information in various reports, such as a GRI report, PCAF report on financed emissions and a PRB report on responsible banking. The Bank has adopted a Sustainability Policy that is revised regularly and includes clear sustainability goals. We work systematically towards four of the UN's Sustainable Development Goals, are a signatory of the UN Global Compact and the UN’s Principals for Responsible Banking. Further information about sustainability in the Bank’s operation is available here on our website.
