Green Financing Framework

Kvika has published a Green Financing Framework which aligns with the bank's policy on environmentally friendly finance and lending. One of the key elements of sustainable development is that capital is directed into sustainable structures. Financial institutions play an important role in this, and can have a significant and positive influence.

Kvika's Green Financing Framework presents the bank's sustainability policy, Kvika's sustainability governance, and how proceeds are allocated to green projectssuch as in lending. The Framework clearly and transparently explains the requirements that the loans granted by the bank have to fulfil to be considered environmentally friendly. Such loans can, for example, focus on energy transformation towards sustainability in transportation, green buildings, and renewable energy.

Kvika's Green Financing Framework is based on Green Bond Principles issued by the International Capital Market Association (ICMA). Accordingly, the Framework consists of four pillars:

  1. Use of Proceeds
  2. Process for Project Evaluation, Selection, and Exclusions
  3. Management of Proceeds
  4. Reporting and External Review

The Framework has received a positive second-party opinion from the global ratings and analytics firm Sustainalytics. The opinion states, among other points, that Kvika's Green Financing Framework is credible and has potential to be effective.

Related Files:

Green Financing Framework of Kvika Bank hf.

Second-party Opinion of Sustainalytics

Further information about sustainability at Kvika, including reports and a summary of the bank's policies, is available here: https://www.kvika.is/en/social-responsibility.