ESG risk assessment

Íslandsbanki conducts ESG risk assessments to get a good overview of where the main sustainability risks lie in the bank's loan portfolio.

The ESG risk assessment is divided into three factors:

• Environmental factors (E)
• Social factors (S)
• Governance factors (G)

The bank is committed to considering ESG criteria when evaluating risk and pricing loans, thus integrating sustainability risk into loan decisions. Íslandsbanki has also published Sector guidelines for several industries that describe the criteria and recommendations the bank suggests their customers in these industries should follow.