Landsbankinn and Landsbréf Take the Next Step in their Introduction of Reponsible Investing
- Agreement concluded with Reitun for ESG rating
Reitun ehf., Landsbankinn and Landsbréf have signed a service level agreement providing for Landsbankinn and Landsbréf to obtain ESG ratings for issuers of equities and bonds in portfolios under management by the latter two companies.
Landsbankinn and Landsbréf have adopted an ambitious strategy for responsible investment. This means taking into account environmental and social factors as well as corporate governance (ESG) in investment decisions. The objective is to reduce risk and deliver sustainable long-term returns.
This agreement takes the next step in introducing procedures for responsible investing, continuing along the path which the Bank and its subsidiary Landsbréf have set for themselves in recent years.
ESG rating has been a collaborative project of Reitun, Klappir Green Solutions and Þröstur Olaf Sigurjónsson, associate professor at the University of Iceland, aimed at developing and providing ESG ratings for the domestic market. Use of such ratings abroad for investment decisions has been growing strongly and domestic investors are rapidly adopting them. An ESG rating assesses how companies perform with regard to environmental aspects, sustainability and governance, showing their strengths and weaknesses, with a quantitative rating enabling their comparison with others. Reitun's services in providing ESG ratings will be based on digital solutions as well as traditional analytics.
Ólafur Ásgeirsson, founder and owner of Reitun ehf., is highly pleased with the agreement and the positive step Landsbankinn and Landsbréf are now taking together with Reitun. “We have long since felt there was a need for a service like this in the domestic market and look forward to the partnership. We’ll do our best to see to it that the bank and Landsbréf achieve their objectives with this agreement.”
Hrefna Ösp Sigfinnsdóttir, Managing Director of Markets at Landsbankinn, and Helgi Þór Arason, Managing Director of Landsbréf, say the agreement is a key step in the strategy that has been defined for responsible investment. “We adopted an ambitious strategy for responsible investment as early as 2013 and have since implemented this policy in our investment decisions. This service agreement is intended to make that work more efficient and objective, based on the latest criteria in each instance.”
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