Non-financial information

Information published in the section on non-financial information is valid for 2020 and relates to the main operations of Arion Bank. The subsidiaries are not included. Data from 2015-2019 is included for comparison. Deloitte has provided an opinion with limited assurance on non-financial reporting by Arion Bank in 2020 which is presented in accordance with the Global Reporting Initiative (GRI) and the Nasdaq ESG Reporting Guide.

Operational Parameters

Operational Parameters

Unit

2015

2016

2017

2018

2019

2020

Total Assets

ISK bn.

1.011

1.036

1.148

1.164

1.082

1.173

Number of employees at the end of year

no.

-

-

-

866

735

698

Number of employees

no.

930

936

882

-

-

-

Environmental

Direct and Indirect GHG Emissions (E1 | UNGC-P7 | GRI: 305-1, GRI: 305-2, GRI: 305-3)

Unit

2015

2016

2017

2018

2019

2020

Scope 1

tCO2e

86,3

87,5

85,1

78,3

65

38,5

Scope 2 (location-based)

tCO2e

94,6

103,9

86,3

91,7

86,5

79,7

Scope 2 (market-based)

tCO2e

-

-

-

-

-

-

Scope 3

tCO2e

263,38

186,97

173,22

303,87

320,54

349,15

Total emissions Scope 1, 2 (location-based) and 3

tCO2e

444,3

378,4

344,6

473,9

472

467,3

Total emissions offset

tCO2e

0

0

19

0

476

470

Total emissions Scope 1, 2 (location-based) & 3

tCO2e

444,3

378,4

325,6

473,9

-4

-2,7

Scope 1 and 2 (location-based) Emissions

Total emissions Scope 1 & 2 (location-based)

tCO2e

181

191,5

171,3

170

151,5

118,2

Total emissions neutralised by carbon offset projects

tCO2e

-

-

19

-

476

470

Net operational carbon emissions Scope 1 and 2

tCO2e

181

191,5

152,3

170

-324,5

-351,8

Emissions intensity Scope 1 and 2 (location-based) (U2 | UNGC-P7, P8 | GRI: 305-4 | SDG 13)

Unit

2016

2017

2018

2019

2020

Emission intensity

kgCO2e/MWh

16,13

16,97

16,19

15,71

13,38

Emission intensity per total assets

tCO2e/ISK bn.

0,18

0,15

0,15

0,14

0,1

Emission intensity per employee

tCO2e/no.

-

-

0,2

0,21

0,17

Losunarkræfni umfang 1, 2 (landsnetið) og 3 (U2 | UNGC-P7, P8 | GRI: 305-4 | SDG 13)

Unit

2016

2017

2018

2019

2020

Emission intensity

kgCO2e/MWh

31,9

34,1

45,1

49

52,9

Emission intensity per total assets

tCO2e/ISK bn.

0,37

0,3

0,41

0,44

0,4

Emission intensity per employee

tCO2e/no.

-

-

0,55

0,64

0,67

Emission intensity per employee

tCO2e/no.

-

-

0,55

0,64

0,67

Emission intensity per total assets

tCO2e/ISK bn.

0,37

0,3

0,41

0,44

0,4

Emission intensity

kgCO2e/MWh

31,9

34,1

45,1

49

52,9

Direct & Indirect Energy Consumption (E3 | UNGC-P7 | GRI: 302-1 | SDG 12 )

Unit

2015

2016

2017

2018

2019

2020

Total energy consumption

kWh

10.458.849

11.867.715

10.098.854

10.500.943

9.641.604

8.833.949

Of which energy from fossil fuel

kWh

335.087

339.013

329.458

303.504

251.333

150.995

Of which energy from electricity

kWh

4.032.727

4.206.952

3.736.673

4.255.984

3.575.403

2.956.243

Of which energy from hot water

kWh

6.091.035

7.321.750

6.032.723

5.941.455

5.814.868

5.726.711

Energy Intensity (E4 | UNGC-P7, P8 | GRI: 302-3 | SDG 12)

Unit

2015

2016

2017

2018

2019

2020

Energy per full-time equivalent (FTEe) employee

kWh/FTEs

-

-

-

12.126

13.118

12.656

Energy intensity per total asset

kWh/ISK bn.

10.345

11.455

8.797

9.019

8.911

7.531

Energy Mix (E5 | UNGC-P7 | GRI: 302-1 | SDG 7)

Unit

2015

2016

2017

2018

2019

2020

Fossil Fuel

%

8,2%

17,6%

3,5%

2,9%

2,6%

1,7%

Renewable Energy

%

85,4%

73,6%

94,2%

97%

97,4%

98,3%

Nuclear Energy

%

3,5%

5%

0,1%

-

-

-

Water Management (E6 | UNGC-P7 | GRI: 303-5.a | SDG 6)

Unit

2015

2016

2017

2018

2019

2020

Total water consumption

168.687

197.826

179.956

168.411

165.794

142.125

Cold water

63.670

71.589

75.943

65.972

65.538

43.388

Hot water

105.018

126.237

104.012

102.439

100.256

98.736

Environmental Operations (E7 | GRI: 103-2)

Unit

2015

2016

2017

2018

2019

2020

Environmental Policy approved by the board

Yes/no

-

-

-

-

Yes

Yes

Company follows specific waste, water, energy, and/or recycling policies

Yes/no

-

-

-

-

Yes

Yes

Company uses a recognised energy management system

Yes/no

-

-

-

-

No

No

Climate Oversight / Board (E8 | GRI: 102-19)

Unit

2015

2016

2017

2018

2019

2020

Does your Board of Directors oversee and/or manage climate-related risk?

Yes/no

-

-

-

-

-

No

Climate Oversight / Management (E9 | GRI: 102-20)

Unit

2015

2016

2017

2018

2019

2020

Does your Senior Management Team oversee and/or manage climate-related risks?

Yes/no

-

-

-

-

Yes

Yes

Climate Risk Mitigation (E10)

Unit

2015

2016

2017

2018

2019

2020

Total annual investment in climate-related infrastructure, resilience, and product development

ISK bn.

-

-

-

-

-

-

Paper Management

Unit

2015

2016

2017

2018

2019

2020

Total amount of printed paper

pages

2.394.280

2.354.928

2.133.768

1.584.072

1.036.835

637.858

of which color print

pages

913.333

830.148

708.720

719.856

460.949

390.730

of which black/white print

pages

2.315.060

2.343.432

2.209.692

1.522.908

992.722

487.088

Duplex

pages

1.668.220

1.637.316

1.569.300

1.317.384

833.672

479.920

Waste Management (GRI: 306-2)

Unit

2015

2016

2017

2018

2019

2020

Total waste generated

kg

119.992

120.728

125.519

164.803

135.235,5

223.982,6

Of which sorted waste

kg

51.588

60.958

59.342

102.119

93.318,5

103.675,6

Of which unsorted waste

kg

68.404

59.770

66.177

62.684

41.917

120.307

Recycled/recovery

kg

-

-

-

97.419

64.664,5

99.632,6

Landfill/disposal

kg

1.440

3.790

27.130

67.384

70.571

124.350

Percentage of sorted waste

%

43%

50,5%

47,3%

62%

69%

46,3%

Percentage of recycled waste

%

0%

0%

0%

59,1%

47,8%

44,5%

Emission in Scope 3 (GRI: 305-3)

Unit

2015

2016

2017

2018

2019

2020

Emissions from business trips

tCO2e

238,6

162,8

151,2

269,7

293,5

90,1

Flights

tCO2e

238,6

162,8

151,2

258,5

284,6

87,2

Taxi

tCO2e

-

-

-

11,3

8,9

2,9

Emissions from waste

tCO2e

28

25

23

34

26

55,3

Emissions from employee commuting

tCO2e

-

-

-

-

-

198

Carbon Offset (GRI: 305-5)

Unit

2015

2016

2017

2018

2019

2020

Total emissions offset

tCO2e

0

0

19

0

476

470

Emissions offset by forestry

tCO2e

0

0

19

0

476

470

Does a third party verify carbon offset projects?

Yes/no

-

-

No

-

No

No

Carbon Taxes

Unit

2015

2016

2017

2018

2019

2020

Carbon tax, gas- and diesel oil

ISK/litre

5,84

6

6,3

9,45

10,4

11,45

Carbon tax, gasoline

ISK/litre

5,1

5,25

5,5

8,25

9,1

10

Carbon tax, fuel oil

ISK/kg

7,23

7,4

7,75

11,65

12,8

14,1

Carbon tax, crude oil, etc

ISK/kg

6,44

6,6

6,9

10,35

11,4

12,55

Total Carbon Tax (ESR)

ISK

193.231

201.186

205.262

283.491

258.671

169.657

Total Fuel Consumption (UNGC-P7 | GRI: 302-1)

Unit

2015

2016

2017

2018

2019

2020

Total fuel consumption in litres

liters

33.457

33.694

32.754

30.216

24.939

15.339

Petrol

liters

2.916

1.304

1.360

1.708

534

4.120

Diesel oil

liters

30.541

32.390

31.394

28.508

24.405

11.219

Environmental PDF version

Social

CEO Pay Ratio (S1 | GRI: 102-38 | UNGC-P6)

Unit

2015

2016

2017

2018

2019

2020

CEO Salary & Bonus (X) to median FTE Salary

X:1

-

-

-

-

6,2

5,61

Does your company report this metric in regulatory filings?

Yes/no

-

-

-

-

-

No

Gender Pay Ratio (S2 | UNGC-P6 | GRI: 405-2)

Unit

2015

2016

2017

2018

2019

2020

Median total compensation for men (X) to median total compensation for women

X:1

-

-

-

-

-

1,51

Outcome of equal pay certification

%

4,8%

3,7%

2,9%

2,4%

2,1%

1,02%

Employee Turnover (S3.1, S3.2 | GRI: 401-1.b | UNGC-P6)

Unit

2015

2016

2017

2018

2019

2020

Employee Turnover

%

10,8

13,8

11,8

13,9

23

10,5

Left voluntarily

%

7,7

5,4

7,7

8,3

6,8

6,5

Left due to dismissal

%

2,2

7,8

2,2

4,4

13,9

3,9

Retired

%

0,9

0,7

0,9

1,2

2,2

0,1

Employee Turnover by gender

Women

%

-

-

-

71

59

68

Men

%

-

-

-

29

41

32

Employee Turnover by age

Aged 20-29

%

-

-

-

23,4

14,1

28

Aged 30-39

%

-

-

-

17,7

21,6

32,5

Aged 40-49

%

-

-

-

22,6

31,9

21

Aged 50-59

%

-

-

-

22,6

19,5

13

Aged 60-69

%

-

-

-

13,7

13

5,5

Employee Turnover by region

Greater Reykjavík Area

%

-

-

-

82,3

86

61,3

Outside Greater Reykjavík Area

%

-

-

-

17,7

14,1

39,7

Gender Diversity (S4.1 | UNGC-P6 | GRI: 102-8.a)

Unit

2015

2016

2017

2018

2019

2020

Total number of employees

no.

882

936

930

866

735

698

Women

%

66

65

65

64,9

65

63,8

Full-time

%

-

-

-

52

55,2

56,3

Part-time

%

-

-

-

12,9

10,2

7,5

Men

%

34

35

35

35,1

35

36,3

Full-time

%

-

-

-

33,1

33,1

34,5

Part-time

%

-

-

-

2

1,5

1,7

Equality (S4.2, S4.3 | UNGC-P6 | GRI: 401-3.a,b, GRI: 405-1)

Unit

2015

2016

2017

2018

2019

2020

Board of Directors

Women

%

55

50

50

42,9

42,9

42,9

Men

%

45

50

50

57,1

57,1

57,1

Age of Board of Directors

Aged 20-29

%

-

-

-

0

0

0

Aged 30-39

%

-

-

-

0

0

0

Aged 40-49

%

-

-

-

66,7

28,6

28,6

Aged 50-59

%

-

-

-

0

57,1

57,1

Aged 60-69

%

-

-

-

22,2

0

0

Aged 70-79

%

-

-

-

11,1

14,3

14,3

All Management

Women

%

41

47

48

47

48

43

Men

%

53

53

52

53

52

57

Managing directors

Women

%

33

44

50

50

33,3

42,9

Men

%

67

56

50

50

66,7

57,1

Heads of Departments

Women

%

39

34

28

30

39,4

35,3

Men

%

61

66

72

70

60,6

64,7

Regional and Branch Managers

Women

%

39

50

43

38,5

33,3

37,5

Men

%

61

50

57

61,5

66,7

62,5

Service Managers

Women

%

-

93

73

82

85,7

-

Men

%

-

7

27

18

14,3

-

Supervisors and Team Leaders

Women

%

50

44

67

60

50

42,9

Men

%

50

56

33

40

50

57,1

Account managers and service managers

Women

%

-

-

-

-

-

61,1

Men

%

-

-

-

-

-

38,9

Managers

Women

%

-

-

-

50

66,7

66,7

Men

%

-

-

-

50

33,3

33,3

Heads of Corporate Business / Account Managers

Women

%

-

-

-

33

33

-

Men

%

-

-

-

67

67

-

Other Managers

Women

%

-

-

-

25

50

-

Men

%

-

-

-

75

50

-

Age of Management

Aged 20-29

%

-

-

-

0

0

0

Aged 30-39

%

-

-

-

14,6

18,1

16,7

Aged 40-49

%

-

-

-

55,2

59

60,3

Aged 50-59

%

-

-

-

28,1

20,5

16,7

Aged 60-69

%

-

-

-

2,1

2,4

6,4

Age of Employees

Aged 20-29

%

-

-

-

17

16,9

14

Aged 30-39

%

-

-

-

25

25

24,1

Aged 40-49

%

-

-

-

31

31,3

33,4

Aged 50-59

%

-

-

-

21

21,2

22,1

Aged 60-69

%

-

-

-

6

5,6

6,3

Parental Leave

Number of women entitled to maternity leave

no.

-

-

-

26

21

28

Number of women who took maternity leave

no.

-

-

-

26

21

28

Number of women that returned to work after maternity leave

no.

-

-

-

20

-

-

Number of men entitled to paternity leave

no.

-

-

-

25

19

31

Number of men who took paternity leave

no.

-

-

-

19

14

31

Number of men that returned to work after paternity leave

no.

-

-

-

19

-

-

Employment type (S5.1 | UNGC-P6 | GRI: 102-8.b,c, GRI: 401-1)

Unit

2015

2016

2017

2018

2019

2020

Percentage of People Employed on Permanent Basis

-

93

92

94,6

95,4

95

Women

%

-

-

-

61,2

62,4

60,7

Men

%

-

-

-

33,4

32,9

34,2

Percentage of People Employed on Temporary Basis

%

-

7

8

5,4

4,6

5

Women

%

-

-

-

3,7

3

3

Men

%

-

-

-

1,7

1,6

2

Employees by Residence

Greater Reykjavík Area

%

-

-

-

83,7

82,4

84,8

Employees on a Permanent Basis

%

-

-

-

80

79,3

81,1

Employed on Temporary Basis

%

-

-

-

3,7

3,1

3,7

Outside Greater Reykjavík Area

%

-

-

-

16,3

17,6

15,2

Employees on a Permanent Basis

%

-

-

-

14,5

16,1

13,9

Employed on Temporary Basis

%

-

-

-

1,7

1,5

1,3

Number of New Employees

no.

-

-

-

73

51

31

Percentage of new employees

%

-

-

-

8,2

6,9

4,4

Gender of new employees

Women

%

-

-

-

56

47

42

Men

%

-

-

-

44

53

58

Age of new employees

Aged 20-29

%

-

-

-

38

45,1

29

Aged 30-39

%

-

-

-

26

31,4

38,7

Aged 40-49

%

-

-

-

30

21,6

32,3

Aged 50-59

%

-

-

-

4

2

0

Aged 60-69

%

-

-

-

1

0

0

New employees by residence

Greater Reykjavík Area

%

-

-

-

87,7

90,2

80,6

Outside Greater Reykjavík Area

%

-

-

-

12,3

9,8

19,4

Training for Employees (GRI: 404-1)

Unit

2015

2016

2017

2018

2019

2020

Avg. hours of training in total

hours

-

-

-

7

20

6,4

Women

hours

-

-

-

8

22

8

Men

hours

-

-

-

6

17

3,7

Management

hours

-

-

-

12

36

13,6

Employees

hours

-

-

-

6

16

5,5

Non-Discrimination Policy (S6 | UNGC-P6 | GRI: 406-1.a)

Unit

2015

2016

2017

2018

2019

2020

Policy to ensure equal opportunities and terms for all genders

Yes/no

-

Yes

Yes

Yes

Yes

Yes

Policy against bullying, sexual harassment, gender based harassment and violence

Yes/no

-

-

-

Yes

Yes

Yes

Bullying, sexual harassment, gender-based harassment and violence

no.

-

-

-

3

2

2

Health and safety of employees (S7, S8 | SDG 3 | GRI: 403-1)

Unit

2015

2016

2017

2018

2019

2020

Accidents in workplace and to and from work

no.

5

5

0

2

7

6

Health indicators

%

-

95,8%

96,3%

96,3%

96%

96,8%

Child & Forced Labor (F9 | GRI: 103-2 | SDG: 8 | UNGC: P7)

Unit

2015

2016

2017

2018

2019

2020

Child and/or forced labor policy?

Yes/no

-

-

-

-

-

No

Human Rights (S10 | UNGC-P1, P2| SDG 4, 10, 16)

Unit

2015

2016

2017

2018

2019

2020

Human rights as part of equal-rights policy

Yes/no

-

-

-

Yes

Yes

Yes

Social PDF version

Governance

Board - Separation of Powers (G1 | GRI: 102-22.v | SDG 10)

Unit

2015

2016

2017

2018

2019

2020

Total number of board members

no.

7

8

8

7

7

7

Women

no.

4

4

4

3

3

3

Men

no.

3

4

4

4

4

4

Gender ratio in the committees chaired by the board

Women

%

-

-

-

-

50

20

Men

%

-

-

-

-

50

80

Board Independence (G2 | GRI: 102-22.ii)

Unit

2015

2016

2017

2018

2019

2020

Does the company prohibit CEO from serving as board chair?

Yes/no

-

-

-

-

-

Yes

The CEO is a board member

Yes/no

No

No

No

No

No

No

The CEO manages committees on behalf of the Board

Yes/no

No

No

No

No

No

No

The CEO is the Chairman of the Board

Yes/no

No

No

No

No

No

No

Total board seats occupied by independents?

%

85,7

87,5

87,5

85,7

100

100

Incentivized Pay (G3 | GRI: 102-35.b)

Unit

2015

2016

2017

2018

2019

2020

Are company executives formally incentivised to act on ESG

Yes/no

Yes

Yes

Yes

Yes

Yes

No

In regards to finance and corporate governance

Yes/no

yes

yes

yes

yes

yes

no

Collective Bargaining (G4 | UNGC-P3 | GRI 102-41 | SDG 8)

Unit

2015

2016

2017

2018

2019

2020

Employees in labour unions

%

-

99,8%

99,8%

99,8%

99,6%

99,4%

Employees outside labour unions

%

-

0,2%

0,2%

0,2%

0,4%

0,6%

Percentage of people working in accordance with labour market laws

%

-

-

-

100%

100%

100%

Suppliers (G5 | UNGC-P3, P4, P5, P6, P7, P8, P9 | SDG 12)

Unit

2015

2016

2017

2018

2019

2020

Supplier Code of Conduct

Yes/no

-

-

-

-

-

Yes

Environmental factors when evaluating suppliers

Yes/no

-

-

-

-

-

Yes

Equality factors when evaluating suppliers

Yes/no

-

-

-

-

-

Yes

Labor rights when evaluating suppliers

Yes/no

-

-

-

-

-

Yes

Ethics & Anti-Corruption (G6 | GRI: 102-16 | UNGC-P10 | SDG 16)

Unit

2015

2016

2017

2018

2019

2020

Does the company publish and follow an EC?

Yes/no

Yes

Yes

Yes

Yes

Yes

Yes

EC has been approved by the board of directors

Yes/no

Yes

Yes

Yes

Yes

Yes

Yes

Anti-corruption and bribery policy

Yes/no

-

-

-

Yes

Yes

Yes

Data Privacy (G7 | GRI: 418-1)

Unit

2015

2016

2017

2018

2019

2020

Data privacy policy?

Yes/no

-

-

-

Yes

Yes

Yes

Implementation of the EU Privacy Regulation (GDPR)

Yes/no

-

-

-

Yes

Yes

Yes

Sustainability Report (G8.1)

Unit

2015

2016

2017

2018

2019

2020

Does the company publish a sustainability report?

Yes/no

-

Yes

Yes

Yes

Yes

Yes

Disclosure Practices (G9.1, G9.2)

Unit

2015

2016

2017

2018

2019

2020

Sustainability data to sustainability reporting frameworks

Yes/no

-

-

-

Yes

Yes

Yes

Focus on specific UN Sustainable Development Goals (SDGs)

Yes/no

-

-

-

Yes

Yes

Yes

Does your company set targets and report progress on the UN SDGs?

Yes/no

-

-

-

-

Yes

Yes

External Validation & Assurance (G10 | GRI: 102-56 i,ii)

Unit

2015

2016

2017

2018

2019

2020

ESG disclosures assured or validated by a third party

Yes/no

-

-

-

-

-

Yes

Governance PDF version

Key to terms used

The letters E, S and G refer to factors relating to the Environment, Social and Governance as set out in the ESG reporting guide for the Nasdaq Nordic and Baltic exchanges. 

GRI stands for Global Reporting Initiative. GRI helps companies and institutions analyze, collect and publish information on the economic, environmental and social impact of their activities. 

UNGC stands for United Nations Global Compact. By participating in the Global Compact companies or institutions commit to work towards the UN’s Ten Principles on Sustainability.

SDG refers to the UN Sustainable Development Goals. The Sustainable Development Goals were adopted by all member states of the United Nations in September 2015. There are 17 Sustainable Development Goals and 169 targets. This table refers to the 17 goals.

Methodology for financial accounting

When calculating Arion Bank’s environmental accounts, we use The Greenhouse Gas Protocol which is a standardized methodology which has been implemented at a number of companies with good results. Arion Bank has underlined the importance of implementing its climate project within the framework of Icelandic and international legislation and regulations on the environment.

The diagram below describes the methodology according to which greenhouse gas emissions are divided into three categories, Scopes 1, 2 and 3. Broadly speaking emissions originate from the transportation of supplies to the company, from the company’s operations and from the transportation of goods and services from the company. Scopes 1, 2 and 3 are divided into direct and indirect greenhouse gases.