Arion Bank Green Deposits

Customers of Arion Bank can now invest their savings in a sustainable bank account called Green Deposits. It represents a completely new type of account in Iceland. All our customers, from retail to corporate, can deposit money into an account which will only be used to fund green projects. Green Deposits is a non-indexed deposit account from which funds can be withdrawn at any time.

One of the fundamental roles of banks is to allocate funds from savers to borrowers and deposits are central to this. All deposits in Green Deposits will be used to support green projects in accordance with Arion Bank’s green deposits framework. Initially the deposits will be used to fund loans to buy cars powered by renewables.

The company CIRCULAR Solutions has carefully assessed the Bank’s green deposits framework. The company is an independent consultant which will perform an annual assessment of the extent to which the funded projects meet the terms of the framework and to assess their environmental impact.

Benedikt Gíslason, CEO of Arion Bank:

“Arion Bank Green Deposits are aimed at anybody wanting to contribute to a more sustainable future. Green vehicle loans represent a logical starting point given that nearly all electricity in Iceland is generated by sustainable means. We have adopted an environment and climate policy according to which we aim to turn our focus on to financing projects which relate to sustainable development and green infrastructure, and this new deposit account is integral to this policy. We want Iceland to meet its environmental and climate obligations and we are committed to making it easier for our customers to make greener choices. Every step in the battle against climate change is important."

Arion Bank offers a range of options for people wanting to buy a car powered by green energy. There are no arrangement fees on vehicle loans from Arion Bank for electric vehicles and other vehicles powered by 100% renewable energy. There is a 50% discount on arrangement fees on loans for hybrid vehicles which emit less than 99g/km in carbon dioxide equivalents.

By putting savings into a Green Deposits account Arion Bank and our customers are supporting the following UN Sustainable Development Goals: Goal number 7 on affordable and clean energy; number 9 on industry, innovation and infrastructure; number 11 on sustainable cities and communities; and number 13 on climate action.