Arion Bank publishes Sustainable Financing Framework

Arion Bank has published its Sustainability Financing Framework which applies to the Bank’s financing, deposits and loans which are classed as environmentally and/or socially sustainable. The new framework replaces the Bank’s Green Financing Framework published in 2021 which has been integral to the Bank’s green lending programme and green bond issues. New features of the Sustainable Financing Framework include social categories which define projects having a positive impact on society. Added importance is also given to the circular economy, and the classification of green projects has also been refined from the previous framework.

At the same time, a report has been published containing updated methodology for calculating which kind of housing classifies as green. The report has been prepared by the engineering firm COWI on behalf of the Bank. The framework has received a second-party opinion from ISS Corporate, which evaluated the quality of the framework in terms of its contribution to the UN Sustainable Development Goals and the eligibility of projects according to the technical screening criteria of EU Taxonomy. Deutsche Bank advised Arion Bank on the Sustainable Financing Framework.

Arion Bank has adopted an ambitious environment and climate policy and is committed to efforts to ensure that Iceland can meet its obligations under the Paris Climate Agreement and reach the government’s target of being carbon neutral by 2040. The Bank strives to provide a range of sustainable products and offers green mortgages, car loans, deposits and business loans. The new framework will be used to advance product development in the sustainable banking sector and to issue sustainable bonds.

Arion Bank’s Sustainable Financing Framework

COWI’s report on green mortgages

Second opinion from ISS Corporate