Case study: How Arion Bank works with its clients and customers to encourage sustainable practices

Stakeholder identification and consultation

Please describe which stakeholders (or groups/ types of stakeholders) you have identified, consulted, engaged, collaborated or partnered with for the purpose of implementing the Principles and improving your bank’s impacts. This should include a high-level overview of how your bank has identified relevant stakeholders, what issues were addressed/results achieved and how they fed into the action planning process.

In 2023, Arion Bank initiated the implementation of the European Sustainability Reporting Standard (ESRS). This standard is part of the requirements for the upcoming incorporation of the Corporate Sustainability Reporting Directive (CSRD) into Icelandic law. A double materiality assessment was published for the first time in accordance with the standard. The assessment results were gathered through stakeholder discussions, employee surveys, and workshops. While the Bank’s environmental accounts reference the ESRS, full implementation of the standard is still in progress.

In developing the Green Financing Framework, Arion Bank consulted various stakeholders from the business sector involved in environmental and climate change issues, including individuals, companies, and government agencies. Arion Bank’s sustainability policies are shaped by stakeholder input and by referring to plans and actions related to ESG issues across different economic sectors.

In 2023, the Bank utilized both official and internal data to map gender equality in the financial market. Arion Bank conducted in-depth interviews with women to identify the barriers they face and determine what approach to this topic is needed most. Inspired by successful initiatives in the Nordic countries, Arion Bank sought additional insights from DNB Bank in Norway, which has executed a commendable campaign in recent years. It was evident from the beginning that Arion Bank’s approach would include motivation, education, and social initiatives.

Arion Bank is involved in extensive and active partnerships in the field of sustainability.

How did Arion Bank work with its clients and customers to encourage sustainable practices and enable sustainable economic activities?

In its 2023 PRB Reporting and Self-Assessment Template Arion Bank reports that it works with its clients and customers to encourage sustainable practices and enable sustainable economic activities as follows:

Arion Bank’s credit policy places an emphasis on sustainability, with credit rules mandating the assessment of ESG factors when a credit rating is required or a company meets the conditions of Article 66d of the Annual Accounts Act.

Suppliers in agreement with the Bank undergo an ESG performance assessment and are required to agree to Arion Bank’s code of ethics for suppliers.

Arion Bank’s sector sustainability policies were developed in close collaboration with its customers.

UN Principles for Responsible Banking: Accelerating a positive global transition for people and the planet

With over 300 signatory banks representing almost half of the global banking industry, the Principles for Responsible Banking are the world’s foremost sustainable banking framework. Through these Principles, the banking community takes action to align core strategies, decision-making, lending and investment with the UN Sustainable Development Goals and international agreements such as the Paris Climate Agreement.

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References:

This case study is based on published information by Arion Bank, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original please revert to the following link:

https://arsskyrsla.arionbanki.is/lisalib/getfile.aspx?itemid=9fbec27f-98f7-11ee-80e4-005056a41e76

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