The data and information published in this report are valid for 2017 and apply to Arion Bank’s core activities, not its subsidiaries. In the summary of non-financial information data from 2015 and 2016 are included for comparison.
Arion Bank underlines its status as a sustainable bank by making a difference to our customers and performing our role as a financial institution conscientiously and responsibly.
At Arion Bank we are dedicated to working responsibly and to provide our customers with high quality and convenient services. Our role is to help our customers - individuals, corporates and investors – to attain their goals. Arion Bank underlines its status as a sustainable bank by making a difference to our customers and performing our role as a financial institution conscientiously and responsibly.
In 2016 a new policy on sustainability was devised at Arion Bank, in which the main focuses and stakeholders are defined. The policy builds on the culture which has evolved at the Bank and the work undertaken in recent years, particularly in respect to financial education, innovation and better and more convenient banking. The title of the policy is Together we make good things happen.
Further information on sustainability at Arion Bank and the Bank’s main focuses can be found here.
Environmental impact and objectives
Arion Bank seeks to minimize the negative environmental impact of its activities. Arion Bank’s core activity is to provide universal banking services to companies and individuals. These services are offered at different locations across Iceland but the activities do not create any legal obligation in respect of environmental impact.
Detailed coverage of the environmental impact of Arion Bank’s activities is contained in the environmental report.
The Bank’s objective is to ensure that jobs at the Bank are sought after by qualified people.
The main objective with regard to employee remuneration is that Arion Bank offers competitive salaries so that the Bank is able to attract and retain outstanding employees. The Bank’s objective is also to ensure that jobs at the Bank are sought after by qualified people. When devising a remuneration policy it must be ensured that the policy does not encourage excessive risk taking but rather supports the Bank’s long-term goals and its healthy operation. The policy is an integral part of the Bank's strategy to protect the long-term interests of the Bank’s owners, its employees, customers and other stakeholders in an organized and transparent manner.
In accordance with Article 79a of the Public Limited Companies Act No. 2/1995 and rules on good corporate governance, the Board of Directors of Arion Bank hf. approves the Bank’s remuneration policy with respect to salaries and other payments to the Board Directors, Chief Executive Officer, Managing Directors, Compliance Officer and Internal Auditor. The remuneration policy is reviewed annually and submitted for approval or rejection at the Bank's AGM.
For further information see Arion Bank’s remuneration policy.
Information on salaries by gender, employee turnover rate, equality and diversity, ratio of permanent employees and more can be found below in a summary of non-financial information.
Human rights, child labour and forced labour
Any kind of sexual discrimination is contrary to the Bank’s equal opportunities policy.
The rights of employees are respected in accordance with Icelandic law and international obligations. No children work for Arion Bank.
Arion Bank respects human rights in accordance with Icelandic law and international obligations. The Bank has set out a clear policy to ensure equal opportunities and terms for employees of both genders. Any kind of sexual discrimination is contrary to the Bank’s equal opportunities policy and equal opportunities legislation.
At the end of 2016 Arion Bank became a signatory to the UN Global Compact initiative on corporate sustainability. By doing this the Bank has committed itself to working in accordance with the The Ten Principles of the UN Global Compact.
Separation of authority
The CEO is responsible for the day-to-day operations of the Bank and manages the Bank with the assistance of the Executive Committee in accordance with the strategy of the Board of Directors. The CEO shall provide the Board with reports on the Bank’s operations and financial position and all important issues which may affect the Bank’s operations and finances. With respect to other duties responsibilities and duties of the CEO please refer to Chapter VII of the Financial Undertakings Act and Chapter IX of the Public Limited Companies Act. The duties of the CEO and his responsibilities take into account the legal environment in which the Bank operates at any given time and the rules which the Board of Directors may establish.
For further details please refer to Arion Bank’s corporate governance statement.
Measures to combat corruption and bribery
Arion Bank seeks to prevent financial crime and the damaging impact it can have on our customers, our business and society. In order to be able do this the Bank provides its employees with the appropriate training and education, maintains effective monitoring and collaborates closely with the law enforcement authorities. The Bank is also aware of the risk of conflicts of interest which inevitably occur in our business and we have taken special measures to prevent conflicts of interest from negatively affecting customers' interests.
We prioritize measures to prevent:
- Money laundering, terrorist financing and violations of trade sanctions
- Conflicts of interest
- Market manipulation and insider misconduct
- Fraud and corruption
Further information can be found in the section on responsible and profitable business practices.
Transparent taxes and fees
Arion Bank reports its financial results on the basis of the Icelandic Annual Accounts Act and International Financial Reporting Standards. Information on taxes and other fees paid by the Bank is displayed here.
Reliability of material
At Arion Bank we aim to ensure that sustainability is part of the Bank's day-to-day activities, its decision-making and processes. Instead of preparing a separate report on sustainability at Arion Bank, the issue is discussed in the Bank's annual report. The report includes a discussion on sustainability and a special environmental report for 2017 in addition to this report on non-financial information at Arion Bank.
The environmental report and the report on non-financial information for 2017 were prepared in collaboration with the Icelandic innovation company Klappir Green Solutions. Klappir specializes in consultancy and technical web and business solutions relating to sustainability. Such input from third parties enhances the reliability and quality of the material presented in the report.
Summary of non-financial information
Explanations of references
- GRI stands for Global Reporting Initiative. GRI helps companies, the government and other authorities identify, gather and report environmental, social and governance (ESG) information within a defined framework. GRI’s framework for sustainability reporting provides guidance on how this information can be published in a clear and comparable manner. Reporting is based on the GRI methodology and uses the appropriate performance indicators. See the GRI website for more information.
- SDG stands for Sustainable Development Goals. The United Nations Sustainable Development Goals are a set of universal actions aimed at eliminating poverty, protecting the planet and ensuring that all people enjoy peace and prosperity. Reporting is based on the Sustainable Development Goals. See the UN SDG website for more information.
- United Nations Global Compact (UNGC). By participating in the Global Compact companies or institutions commit to work towards the Ten Principles. See here for further details.
- The letters E, S and G refer to the environment, society and governance as set out in the ESG reporting guide for the Nasdaq Nordic exchanges. See the Nasdaq website for more information.