Arion Bank achieves outstanding results in Reitun’s ESG rating

Arion Bank has achieved outstanding results in Reitun’s ESG rating, scoring 86 points out of a possible 100 and placing it in category A3. The assessment is based on the Bank’s performance in environmental, social and governance issues in its operations. Approximately 30 Icelandic issuers have been rated by Reitun and the average score is 60 points.

In its review Reitun notes that the incorporation of ESG factors into the investment and lending activities of financial institutions constitutes a major risk factor. Arion Bank has shown great innovation in this area and developed methods to assess investment options, primarily listed companies, with respect to ESG. The Bank helps companies perform better in terms of ESG and uses its position to exert a positive influence. The Bank is continuing to work towards its goals in developing a green loan structure for its lending activities and aims to assess the carbon footprint of its lending portfolio.

The Bank offers better lending terms for eco-friendly vehicles and a green deposit account, which is a new product on the Icelandic banking market. Reitun considers it positive that the Bank places importance on taking environmental considerations into account in its operations, thereby supporting further sustainability in society.

The review also notes that information security is a major risk factor in financial services and Arion Bank manages these risks effectively. Human resources at the Bank are also well managed and internal environmental issues are handled responsibly.

Ólafur Ásgeirsson, managing director of Reitun:

“Arion Bank has achieved outstanding results in Reitun’s ESG rating and thereby sets an excellent example for the Icelandic market. The Bank is one of two companies to have achieved the highest rating and is above average in all categories. Arion Bank has taken vital steps in introducing responsible thinking into its product offering, including deposits, loans, asset management and supplies. The Bank is therefore ideally positioned to have a positive social impact on its immediate environment through its stakeholders. It is important that the Bank continues to attend to these issues and to exert an influence where possible.”

Benedikt Gíslason, CEO of Arion Bank:

“We are delighted that Reitun has given Arion Bank such a high rating. Our business, how we develop products, manage capital and make decisions take ESG factors into account to an ever increasing extent. In recent years the Bank’s asset management business has placed importance on evaluating our investment options on this basis and we are developing a green framework around our lending activities. Green deposits, launched recently, have proven highly popular among our customers. We are committed to further developing our product and service offering in this direction.”

Results of Reitun's ESG rating