In 2021, Reykjavík Energy (RE) issued a framework for green financing. This framework outlines the policy that all financing through green bonds or loans adheres to the best possible practices, following the "Green Bond Principles" guidelines issued by the ICMA (International Capital Market Association). The Green Framework is based on four pillars:
- Definition of green project categories
- Selection process for green projects
- Management of funds
- Reporting to investors
RE's green financing framework received the highest possible rating from Cicero – shades of green (now part of S&P Global), confirming that RE's projects have a positive impact on the environment and that the financing framework is robust. Cicero is now part of S&P Global.
The purpose of the issuance is to finance the numerous green projects at RE and its subsidiaries – Veitur Utilities, ON Power, Reykjavík Fibre Network, and Carbfix. In 2023, RE financed many new green and climate-friendly projects for about 19.7 billion ISK. These projects included energy production from renewable sources, such as electricity production and expansion of district heating, water supply, sewage, and electrical systems, automatic meter reading of utility systems, carbon dioxide sequestration in bedrock, projects to enhance adaptation and resilience of utility systems to climate change, and more. This financing amounts to 32.2% of the Group's turnover. A multidisciplinary team within Reykjavik Energy selects the projects, and they are reviewed by an external party.
