Landsbankinn’s Policy on Responsible Investment is based on the United Nations’ Principles on Responsible Investment, of which Landsbankinn is a member. The policy reflects Landsbankinn’s rules on, inter alia, risk appetite, large exposures and maximum aggregate risk, operational risk, reputational risk, liquidity risk and good corporate governance.
Landsbankinn aims to be a leader in responsible investment in Iceland, as a strategy of responsible investment positively impacts return on investment in the long term and reduces operational risk.
The Policy is intended to serve as a framework that enables the Bank to integrate corporate social responsibility in investment decisions.
The Policy applies to Landsbankinn and the Bank emphasises the need for its subsidiaries to set comparable policies.
The Policy applies first and foremost to investment in listed and unlisted equities on the Bank’s own behalf or its customers:
Responsible investment involves:
» That Landsbankinn complies with current laws and regulations on individual markets.
» That investment always seeks to minimise the negative effects of and promotes the positive impact of investment on the environment, employees and other stakeholders.
» That Landsbankinn obliges itself to promote on-going improvements in matters relating to environmental, social and governance affairs.
» That Landsbankinn carries out risk assessment designed to evaluate the ESG aspects of companies under consideration for investment.