Sustainability Report of the Central Bank of Iceland has been published on this website.
The Sustainability Report discloses sustainability information regarding the bank's operations as well as reporting on how the bank incorporates climate issues and sustainability into its core operations. It also details how the bank communicates information and supports the implementation of sustainability for its supervised entities.
Foreword by senior management
With the Paris Agreement, countries around the world have set a target of keeping global warming below 2° Celsius, and as close to 1.5° Celsius as possible. The Government of Iceland has signed and ratified the agreement, and it participates in the journey shared with the European Union and Norway, with the aim of reducing greenhouse gas emissions by 55% between 2019 and 2030. Furthermore, the Government of Iceland’s objective is that Iceland shall be carbon-neutral by 2040.
By law, the Government of Iceland, public institutions, and companies that are majority-owned by the Government must adopt a climate strategy with explicit targets for reduced greenhouse gas emissions and carbon neutralisation. The Central Bank of Iceland supports the Government’s sustainability goals with its policy and legally mandated objectives, which enable the Bank to participate actively in Iceland’s fulfilment of its international climate obligations.
Although the Governement bears the primary responsibility for implementing strategies and ensuring funding for climate risk mitigation and systematic transition to a carbon-neutral economy, there are tasks within the Central Bank’s purview that require the Bank’s contribution. It is important that the Central Bank set a good example by moving its own activities and operations towards carbon neutrality. It is also within the Central Bank of Iceland’s purview to identify, assess, and monitor risk factors and the impact of climate change on the resilience of the financial system and the economy more broadly.
Climate change is one of the biggest challenges of our time, posing an existential threat to human welfare and prosperity. The impact of climate change on our natural environment, biota, and community, the unsustainable use of natural resources, and the transition to a carbon-neutral economy will put strain on the financial system and the economy as a whole. It is vital that the Central Bank of Iceland and other central banks respond decisively to these changes within their sphere of responsibility