Information disclosure in connection with sustainability risk
In accordance with the provisions of Article 3 of Regulation (EC) No. 2019/2088 of the European Parliament and of the Council on sustainability‐related disclosures in the financial services (SFDR), transposed into Icelandic law with Act No. 25/2023, on disclosure on sustainability in the financial services and taxonomy for sustainable investment. According to Article 3, parties in the financial market shall publish to their websites information on how sustainability-related risk is incorporated in decision-making processes on investment. Financial advisors shall also publish to their websites information about how sustainability-related risk is considered in their investment or insurance advice. As an entity on the financial market and as a provider of financial advice to its customers, Landsbankinn must comply with these obligations.
SFDR defines sustainability risk as an environmental, social or governance event or circumstance that, if it occurs, could have an actual or potentially significant negative impact on the value of an investment.
Landsbankinn is working on including a sustainability risk assessment in investment decisions within the Bank. Part of obligation towards customers is to know and analyse risk that may have a financial impact on assets under management by the Bank. This includes the duty to consider and assess the impact of sustainability risk in a systematic manner in relation to decisions in asset management and investment advice. We conduct our work in accordance with the Policy on Responsible Investment which is part of the Bank’s Sustainability Policy. The Sustainability Policy is approved by the Board of Directors and is reviewed and updated every two years. The Policy is publicly available on the Bank's website.
When the Bank provides investment advice, regard is had for sustainability risk in information disclosure to customers about the selection of investment products through assessment of sustainability risk that may impact individual investments or asset portfolios.
Sustainability Policy of Landsbankinn (PDF)
Statement on principal adverse impact (PAI) on sustainability factors
Act No. 25/2023, on disclosure on sustainability in the financial services and taxonomy for sustainable investment, transposed into Icelandic law to EU regulations, the EU Taxonomy and the SFDR.
According to Article 4 of the SFDR, entities in the financial markets as defined by the Regulation are obliged to publish to their website, as appropriate, updated information on how they consider the adverse impact of investments on sustainability factors. The scope of such disclosure depends on the size and nature of the operation and type of financial product. PAI is considered to be the negative impact an investment or investment advice has on sustainability factors as defined in SFDR.
This statement is intended to provide information on how Landsbankinn intends to identify, measure and manage the adverse impact financial decisions may have on sustainability factors. Sustainability factors refers to environmental, social and employee matters, respect for human rights, anti-corruption and anti-bribery matters.
Landsbankinn has adopted goals to integrate sustainability factors in its investment decision process and align the Bank’s operation with the goals set forth in the Paris Agreement and the UN SDGs. By considering the negative impact of investment on sustainability factors, the Bank contributes to the long-term positive performance of our customers which again contributes to a more sustainable economy and society.
