Non-financial Information
Stefnir publishes its non-financial information in its sustainability report for the third time in 2023. Stefnir wants to inspire others to do the same to alliterate transparency in operations regarding environmental, social and governance factors. Stefnir records non-financial information in accordance with the Nasdaq ESG reporting guide.
Stefnir receives information regarding environmental factors from KPMG, they are calculated based on the percentage of staff at the end of the year within the headquarters of Arion Bank where Stefnir is housed. When calculating scope 3, data on air travel, taxi rides and transportation of the organization's employees was used as well as data the consumption of the establishment.
Progress
In the year 2023, the financed emission of greenhouse gases of funds' assets in Stefnir's operation was compiled and a related report was published. The report includes information on the emission strength of the investment for each ISK 1 m. invested in a specific funds. The methodology used for the calculation is based on the methodology of the Partnership for Carbon Accounting Financials (PCAF), an international cooperation platform of financial companies whose main goal is to harmonize the assessment of the extent of greenhouse gas emissions.
KF Global Equity, an international equity fund managed by Stefnir, was defined according to Article 8 of the European Parliament’s and of the Council’s regulation on sustainability‐related disclosures in the financial services sector (e. SFDR) in 2022. The fund thus provides information on how the impact of sustainability is taken into account in its investment decisions. This is the first fund managed by a domestic entity that has defined itself in this way. Four other funds were classifies as a part of Article 8 at the beginning of 2024. Stefnir - Scandinavian Fund - ESG, Stefnir - Sustainable Fixed Income Fund, Stefnir – Green Selection and Stefnir - Sustainable Artic Fund had the funds' rule changes approved by the Financial Supervisory Authority of the Central Bank of Iceland. The funds will after the change consider the impact on sustainability in their investment decisions and it is hoped that the changes will be well suited to the wishes of Stefnir's customers.
Policies on sustainability and responsible investments
Policy on sustainability and social responsibility was confirmed by the board in the beginning of 2022. The policy highlights Stefnir's long term sustainability commitments and how Stefnir integrates sustainability into its operations when managing financial assets according to company's fiduciary duty. The policy can be found on company's website. Stefnir has a policy on responsible investments. The policy aims to manage the financial assets of Stefnir's clients, as best serves their interests, regarding environmental, social and governance factors.
Key performance indicators
- G2. Board Independence: Independent board members were two against one dependent board member in 2023.
- G5. Supplier Code of Conduct: All of Stefnir's suppliers must follow the Supplier’s Code of Conduct.
- G6. Ethics & Anti-Corruption: The Board of Directors confirmed the Code of Conduct in 2022 that reflects the ethical standards that the Board of Directors and employees follow, but other criteria on the same subject can also be found in staff employment contracts, conflicts of interest policy and the Board of Directors' rules of procedure. The Board also approved Stefnir's rules on measures against money laundering and terrorist financing in 2022.
- G7. Data Privacy: Stefnir has a Data Protection Policy that can be found on the company’s website.
- S4. Gender Diversity: The ratio of women in executive-level positions was 33% in 2022, while within the company the ratio of women was %. The board's goal of increased diversity is for the proportion of women among the company's employees to be 40% by the end of 2024.
Confirmed by the board of Stefnir
21st of February 2024
| Environment | 2023 | 2022 | 2021 |
|---|---|---|---|
| E1. GhG Emissions | |||
| Total amount, in CO2 equivalents | 22,0 | 10,6 | 6,2 |
| - For Scope 1 | 0 | 0 | 0 |
| - For Scope 2 | 0,5 | 1,53 | 1,5 |
| - For Scope 3 | 21,5 | 9,07 | 4,7 |
| Total emissions offset | 0 | 0 | -3 |
| E2. Emissions Intensity | |||
| Emission intensity (kgCO2e/MWh) | 150,27 | 64,43 | 37,49 |
| Emission intensity per total assets (tCO2e/ ISK bn.) | 5,53 | 2,6 | 1,9 |
| Emission intensity per employee (tCO2e/no) | 0,92 | 0,46 | 0,3 |
| E3. Energy Usage | |||
| Total energy consumption (kWh) | 146.147 | 164.447 | 165.505 |
| - Of which energy from electricity | 47.119 | 44.735 | 41.663 |
| - Of which energy from hot water | 99.028 | 119.712 | 123.842 |
| E4. Energy Intensity | |||
| Energy per full-time equivalent (FTEe) employee (kWh/FTEs) | 6.089 | 7.150 | 7.881 |
| Energy intensity per total asset (kWh/ISK bn.) | 36.711 | 39.789 | 51.113 |
| E5. Energy Mix | |||
| Renewable Energy (%) | 100 | 100 | 100 |
| E6. Water Usage | |||
| Total amount of water consumed (m3) | 3.871 | 3.698 | 3.161 |
| E7. Environmental Operations | |||
| Does your company follow a formal Environmental Policy? (Yes/No) | No | No | No |
| Does your company follow specific waste, water, energy, and/or recycling polices? (Yes/No) | Yes | Yes | Yes |
| Does your company use a recognized energy management system? (Yes/No) | No | No | No |
| E8. Climate Oversight / Board | |||
| Does your Board of Directors oversee and/or manage climate-related risks? (Yes/No) | No | No | No |
| E9. Climate Oversight / Management | |||
| Does your Senior Management Team oversee and/or manage climate-related risks? (Yes/No) | No | No | No |
| E10. Climate Oversight / Management | |||
| Total amount invested, annually, in climate-related infrastructure, resilience, and product development. | - | - | - |
| Social | 2023 | 2022 | 2021 |
|---|---|---|---|
| S1. CEO Pay Ratio | |||
| Ratio: CEO total compensation to median FTE total compensation | 1,78 | 2,14 | 1,77 |
| Does your company report this metric in regulatory filings? (Yes/No) | Yes | Yes | Yes |
| S2. Gender Pay Ratio | |||
| Ratio: Median male compensation to median female compensation | 1,47 | 1,83 | 1,003 |
| S3. Employee Turnover | |||
| Year-over-year change for full-time employees (%) | 18,2 | 26,1 | 5 |
| Year-over-year change for part-time employees (%) | 9 | 4,3 | 5 |
| Year-over-year change for contractors and/or consultants (%) | 0 | 0 | 0 |
| S4. Gender Diversity | |||
| Total enterprise headcount held by women (%) | 29 | 32 | 30 |
| Entry- and mid-level positions held by women (%) | 29 | 29 | 35 |
| Senior- and executive-level positions held by women (%) | 33 | 40 | 40 |
| S5. Temporary Worker Ratio | |||
| Total enterprise headcount held by part-time employees (%) | 8 | 10 | 10 |
| Total enterprise headcount held by contractors and/or consultants (%) | 0 | 0 | 0 |
| S6. Non-Discrimination | |||
| Does your company follow a sexual harassment and/or non-discrimination policy? (Yes/No) | Yes | Yes | No |
| S7. Injury Rate | |||
| Frequency of injury events relative to total workforce time (%) | 0 | 0 | 0 |
| S8. Global Health & Safety | |||
| Does your company follow an occupational health and/or global health & safety policy? (Yes/No) | No | No | No |
| S9. Child & Forced Labor | |||
| Does your company follow a child and/or forced labor policy? (Yes/No) | No | No | No |
| If yes, does your child and/or forced labor policy See also: cover suppliers and vendors? (Yes/No) | No | No | No |
| S10. Human Rights | |||
| Does your company follow a human rights policy? (Yes/No) | Yes | No | No |
| If yes, does your human rights policy See also: cover suppliers and vendors? (Yes/No) | Yes | No | No |
| Governance | 2023 | 2022 | 2021 |
|---|---|---|---|
| G1. Board Diversity | |||
| Total board seats occupied by women (%) | 67 | 67 | 67 |
| Committee chairs occupied by women (%) | 100 | 100 | 100 |
| G2. Board Independence | |||
| Does company prohibit CEO from serving as board chair? (Yes/No) | Yes | Yes | Yes |
| Total board seats occupied by independents (%) | 67 | 67 | 67 |
| G3. Incentivized Pay | |||
| Are executives formally incentivized to perform on sustainability? (Yes/No) | Yes | Yes | No |
| G4. Collective Bargaining | |||
| Total enterprise headcount covered by collective bargaining agreement(s) | 100 | 100 | 100 |
| G5. Supplier Code of Conduct | |||
| Are your vendors or suppliers required to follow a Code of Conduct? (Yes/No) | Yes | Yes | Yes |
| G6. Ethics & Anti-Corruption | |||
| Does your company follow an Ethics and/or Anti-Corruption policy? (Yes/No) | Yes | Yes | Yes |
| If yes, what percentage of your workforce has formally certified its compliance with the policy? | 100 | 100 | 100 |
| G7. Data Privacy | |||
| Does your company follow a Data Privacy policy? (Yes/No) | Yes | Yes | Yes |
| Has your company taken steps to comply with GDPR rules? (Yes/No) | Yes | Yes | Yes |
| G8. ESG Reporting | |||
| Does your company publish a sustainability report? (Yes/No) | Yes | Yes | Yes |
| Is sustainability data included in your regulatory filings? (Yes/No) | Yes | Yes | Yes |
| G9. Disclosure Practices | |||
| Does your company provide sustainability data to sustainability reporting frameworks? (Yes/No) | No | No | Yes |
| Does your company focus on specific UN Sustainable Development Goals (SDGs)? (Yes/No) | Yes | Yes | No |
| Does your company set targets and report progress on the UN SDGs? (Yes/No) | No | No | No |
| G10. External Assurance | |||
| Are your sustainability disclosures assured or validated by a third party? (Yes/No) | Yes | Yes | Yes |