Green Financing Framework

Reykjavík Energy initiated issuance of green bonds in 2019. The framwork for that issuance can be found below.

In year 2021, Reykjavík Energy issued a comprehensive Green Financing framework, thereby manifesting its aim to have all the OR Group's financing green.

Green Financing Framework

Reykjavík Energy's Green Financing Framework constitutes the Group's aim that all its financing is green, whether green bonds or other forms of financing. The Framework has received a second opinion from CICERO, which gives it the rating Dark Green and Excellent for governance procedure.

Reykjavík Energy (RE) - Green Financing Framework

Reykjavik Energy (RE) - Green Financing Framework - Second Opinion - CICERO

Green Bonds

Since Reykjavík Energy’s first green bond was issued in February 2019, the company has established two green bond series. Reykjavík Energy commits to using the proceeds from the green bond issues to finance projects with positive environmental benefits.

In connection with the issuance of green bonds, the company has established the Reykjavík Energy Green Bond Framework. Reykjavík Energy has systematically worked on environmental issues over a long period. The Green Framework and the issuance of bonds conducted within it are a confirmation of the objectives which Reykjavík Energy has established for itself and revolve around the financing or re-financing of projects that promote a responsible and sustainable utilisation of resources.

The purpose of the issuance is to finance the many green projects that are being conducted by Reykjavík Energy and its subsidiaries – Veitur Utilities and ON Power. These include power production from renewable energy sources, such as the generation of electricity and expansion of district heating, water protection and strengthening of sewerage systems, the Internet of Things (IOT) of utility systems and ambitious carbon sequestration projects.

The Green Framework follows the so-called “green bond principles“ issued by the ICMA (International Capital Market Association). The Green Framework is founded on four pillars:

  • Definition of green project categories
  • Selection process for green projects
  • Handling of funds
  • Reporting to investors

CICERO (Center for International Climate Research) has issued an independent opinion of the framework and given it its highest rating : “dark green“ for the positive environmental impact of the projects and “excellent“ for the company’s bond framework.

Reykjavik Energy (RE) - Green Bond Framework

Reykjavik Energy (RE) - Second Opinion - CICERO

Reykjavik Energy – 2019 Green Finance Impact Report – Auditor‘s Assurance

Reykjavik Energy – 2020 Green Finance Impact Report – Auditor‘s Assurance

Reykjavik Energy – 2021 Green Finance Impact Report – Auditor‘s Assurance

Reykjavík Energy 2021 Green Finance Allocation and Impact Report - CORRECTED

Reykjavík Energy Green Finance Impact Report 2022 - Audited