Sustainability involves using Earth’s limited resources to meet our current needs without reducing the opportunity for future generations to meet their needs.

Money deposited into a sustainable savings account is earmarked for loans that fund projects under Landsbankinn’s Sustainable Finance Framework. We publish information on each year’s activities according to our Sustainable Finance Framework in a report reviewed by an independent party.

By investing in sustainable projects and companies. The Multi-Asset Fund - Sustainable is an example of a fund that focuses on achieving a good rate of return and risk diversification with sustainability as a guiding principle. Fund staff identifies investment options based on companies’ sustainability factors. Companies’ ESG (environmental, social and governance) performance is considered, as well as ratings from analytic companies such as MSCI, Reitun, Sustainalytics, etc.

Third-party analyses are used to select investment options. Such analyses look specifically at the sustainability approach of companies and funds, and whether they consider and manage sustainability risks. Investments are not made unless the investment option meets the requirements of the fund manager regarding sustainability factors, as well as other requirements for price and expected returns.

Money deposited into a sustainable deposit account is used for projects deemed sustainable under the terms of Landsbankinn’s Sustainable Finance Framework. Such projects may include:

Energy transition projects:

•  Building cycling and walking paths
• Windmills
• Charging stations
• Electric cars
• Solar cells

Projects that lead to:

• Less use of plastic
• Less waste
• Improved recycling
• Increased sorting and reuse
• Forestry

Cultivation of organic vegetables

Organic agriculture

Sustainable fisheries

Recovery of wetlands

The Bank publishes an annual report on how funds under the Sustainable Finance Framework were used in the preceding year.

A sustainable finance framework defines what economic activities and projects can be considered sustainable and provides detailed definitions for each category. By issuing a high-quality framework, banks create an environment where they can provide transparent and credible financing for sustainable projects.

You can withdraw the money at any time.

Minimum investment in the Multi-Asset Fund - Sustainable is ISK 10,000. The transaction charge is ISK 450 and the purchase fee is 1%. The fund’s opening hours are 09:30 – 13:30 and the settlement cycle is two banking days. You can also subscribe to the fund and invest for a fixed amount each month. With a monthly subscription, no purchase fee is charged and you get a discount on the transaction charge.

Yes, projects within the scope of the Sustainable Finance Framework contribute to the goals of the Paris Agreement to limit global warming to less than a 1.5°C increase from pre-industrial levels.

Rainbow bonds are colour-coded bonds linked to sustainability:

• Green bonds are traditional bonds that are issued to finance specific projects intended to have a positive environmental impact. Bonds can be classified as green if they are committing funds to environmentally friendly projects that meet the conditions of a sustainable finance framework. Information on the positive environmental impact of such projects must be published annually.
  
• Blue bonds are traditional bonds that are issued to finance projects to conserve and sustainably use the oceans, seas and marine resources for sustainable development. They are a sub-category of green bonds. Information on the positive environmental impact of such projects must be published annually.
  
• Brown bonds, or transition bonds, are traditional bonds that are issued to support the energy transition or social development. They are designed for energy-intensive industries with heavy GHG emissions and are intended to facilitate access to the advantageous financing of projects that implement energy transition in such operations. The brown colour code also applies to bonds that finance projects intended to have a positive social impact.