Corporate social responsibility (CSR)


Corporate social responsibility (CSR) is an important aspect of Landsbankinn's activities and the bank emphasises integrating this with its overall strategy. The bank wishes to ensure that its activities are fully in harmony with society while at the same time delivering an acceptable return to shareholders. That way both society and owners benefit.

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Ten years of UN Global Compact

Landsbankinn became a signatory of the UN Global Compact in 2006. UN Global Compact is a co-operative project of the UN and business and industry to follow up on UN objectives. The project involves encouraging undertakings to practice CSR in their work. Those undertakings which ratify the agreement have chosen to comply with UN criteria with the aim of increasing sustainability of their operations and follow responsible business practices.

Landsbankinn prepares an annual CSR report in accordance with the criteria of the Global Reporting Initiative (GRI) which is published on its website in tandem with its annual report. The report provides comparable data from one year to the next, emphasising good information disclosure on methods of implementing and developing CSR at Landsbankinn. The CSR report also plays a role in the status report to UN Global Compact.

Emphasis on responsible investment

Landsbankinn is working determinedly on implementing a responsible investment policy. At the beginning of 2013 the bank adopted the UN Principles for Responsible Investment (UN PRI). The bank's own rules on responsible investment have been set with regard to UN PRI rules and are based on rules on risk appetite, large exposures and limits to overall risk, operational risk, reputational risk, liquidity risk and good governance.

Landsbankinn's CSR report

Landsbanki prepares an annual CSR report in accordance with the criteria of the Global Reporting Initiative (GRI) which is published on its website in tandem with its annual report.

The policy on responsible investment is intended to define a framework within which the bank can integrate CSR and investment decisions. Such a policy, in Landsbankinn's estimation, has a positive impact on long-term return on investment and therefore reduces the bank's operational risk.

Key aspects of equal rights policy

  • In Landsbankinn both men and women shall have equal job and management opportunities.
  • Landsbankinn aims at having a gender balance among its employees and to avoid categorisation of work into male and female positions.
  • Landsbankinn pays women and men equal wages for equally valuable work.
  • Landsbankinn emphasises enabling employees to find a suitable work-life balance.
  • Landsbankinn takes care to ensure that both genders have equal opportunities for job development, education and training.
  • Mobbing, prejudice or gender-based or sexual harassment will not be tolerated at Landsbankinn.

Strong equal rights policy

Landsbankinn has for many years actively promoted equal rights. The bank's policy on equal rights emphasises that everyone should have equal opportunities regardless of gender, age, origin, sexual orientation, disability, religion or other cultural status. Landsbankinn emphasises hiring both women and men for management positions.

In 2015 the bank was awarded the golden seal of PwC's Equal Pay Audit, the first Icelandic bank to achieve this, and the largest Icelandic undertaking to receive the award. The bank emphasises ensuring wage equality and equal career opportunities. PwC's golden seal is an important affirmation of the status of gender equality in the bank and furthermore encouragement to the bank to maintain this situation. Ever since the first CSR report was published, it has contained data on the gender differential in salaries.

In 2011 Landsbankinn signed the equality charter Women's Empowerment Principles – Equality means Business, an international campaign by UN Women and UN Global Compact. In so doing the bank obliged itself to work on equal rights within the company, as the charter contains seven principles which are to serve as guidelines in empowering women in undertakings and increasing their contribution to business and industry.

In 2010 the bank adopted the target of having the share of each gender in the bank's leadership always at least 40%. The bank's executive is currently comprised of seven persons, three women and four men, including the CEO.

The bank's policy on gender equality states that in Landsbankinn both men and women shall have equal opportunities and enjoy the same rights in their work and for career advancement. The policy also states that Landsbankinn aims to have a gender balance among its employees, to prevent categorisation of work into male and female positions, and to have men and women paid equally for work of equal value. Mobbing, prejudice or gender-based or sexual harassment will not be tolerated.

Many projects on which the bank is currently working are connected with CSR. These are related to operations, personnel and the community and are aimed at reducing expenses, utilising funding better, encouraging healthier lifestyles and more productive participation by the bank and its employees in projects outside the bank itself. Further information on various measurements in the area of CSR are available in the bank's CSR report.

Positive success in environmental issues

Paper: New printing methods introduced in 2013 have now reduced the use of paper in the bank's activities by 63%, from 37.1 tonnes to 13.6 tonnes annually or from 310 grams per customer to only 115 grams each. Almost all the paper used by the bank is environmentally certified. Use of paper for information publication has decreased by 10.8 tonnes since 2013, while at the same time the proportion printed on environmentally certified paper has risen from 56% to 82%.

Energy: Electricity consumption has decreased by 38.6% since 2012, which can be attributed to some extent to a pilot project in premises management at the bank's headquarters.

Greenhouse gas emissions: Carbon emissions from vehicles have decreased by around 25.4%, partly due to renewal of the bank's vehicle fleet in 2012. Total greenhouse gas emissions have been reduced by 103 tonnes from 2014, or by 25%. In 2013 the bank also began to offset all measured emissions of greenhouse gases.

More travel contracts

The objective of travel contracts is to increase the number of employees' transportation options to enable them to use the most suitable travel option in each instance, encourage the use of environmentally friendly transportation when possible while allowing for automobile use as necessary.

In travel contracts employees oblige themselves to utilise other means of transportation than private automobiles to travel to and from work in 60% of instances. The bank repays them the cost incurred up to ISK 84,000 annually.

At year-end 2015 there were 407 employees with active travel contracts, 36.5% of the total number of employees, which is an increase of 32.3% over the previous year. A total of 104 employees signed contracts during the year while 78 employees who had such contracts terminated them or left the bank's employ. Of those with active agreements 259 are women and 148 men, which is a proportion similar to that of the bank's workforce as a whole.

Reduced paper consumption

63%less paper
Number of travel contracts