Tök­um

ábyrgð

In its simplest form, sustainability means that companies, institutions and all kinds of organizations assume responsibility and have a constructive impact on the environment, governance and society. In the development and policy-making, consideration is given to all stakeholders who are involved in the operation of organizations in one way or another. Sustainability and social responsibility are implemented in the core activities of a business unit. Social responsibility falls under sustainability.

Sustainability thinking is thus also a source of power and new business opportunities that provide companies and organizations with inspiration and power to improve their performance and be more competitive in domestic and foreign markets.



Tök­um

ábyrgð

In its simplest form, sustainability means that companies, institutions and all types of organizations assume responsibility and have a constructive impact on the environment, governance and society. In the development and policy-making, consideration is given to all stakeholders who are involved in the operation of organizations in one way or another. Sustainability and social responsibility are implemented in the core activities of the business unit.


Sam­fé­lags­lega ábyrg hugs­un er þannig einnig afl­gjafi og upp­spretta nýrra við­skipta­tæki­færa sem veit­ir fyr­ir­tækj­um og stofn­un­um inn­blást­ur og kraft til að bæta ár­ang­ur sinn og vera sam­keppn­is­hæf­ari á inn­lend­um og er­lend­um mörk­uð­um.



What is sustainability?

Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

- Gro Harlem Brundtland

   Sjálfbær þróun er þróun sem mætir þörfum               nútímans án þess að skerða möguleika komandi       kynslóða á að mæta þörfum sínum.


Such development is about considering economic values while maintaining or restoring the quality of nature and promoting human rights for all people in the long term. The goal of sustainable development is to achieve sustainability in society as a whole and on the planet.



The United Nations Sustainable Development Goals serve to summarize these priorities and are in fact an implementation plan for the sustainable development of humanity.


Sustainable development has been defined as development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

United Nations – definition of sustainable development



The goal now is for sustainability and social responsibility to become part of the DNA of companies and organizations. That everything companies do is done on the premise of being responsible for the impact they have on people and nature.


Hrund Gunnsteinsdóttir, Fréttablaðið 28.02.20202

Fasten Guide

IN

THE ENVIRONMENT

F

SOCIAL ASPECTS

S

Stjórn­ar­hættir

IN

THE ENVIRONMENT

F

SOCIAL ASPECTS

S

Management Practices

  • EU regulations on responsible investment and sustainable operations

    Various regulations and guidelines from the European Union are based on actions for sustainable growth. Those that have not been implemented in Iceland will be implemented in the coming months and years. These are: A. EU Taxonomy – Regulation on a classification system for the sustainable operation of companies B. SFDR – Regulation on the disclosure of sustainability-related information in the field of financial services C. CSRD – Rules on the form and content of sustainability information by companies and investors D. EUGBS – Framework for the issuance of green bonds E. EU Climate Benchmarks Regulation – Regulation on sustainable financial benchmarks F. UCITS, MiFID, AIFMD – amendments to three directives on the integration of sustainability considerations into investment advice and the operation of funds In the roadmap published by Festa in 2023, more detailed information about these regulations can be found.

  • Behavioral factors

    When businesses implement a sustainability strategy, they are moving from considering only the welfare of their shareholders to considering the overall welfare of all stakeholders in the business. Here we move from Milton Friedman's theory from 1970, where he suggests that managers are solely responsible for ensuring that the company's shareholders receive a financial return on their investment, to Edward Freeman's theory from 1984. Freeman suggests that managers are responsible for considering all groups that the business's operations affect in one way or another and that the operations should deliver added value to all, or as many as possible, of them. This is what has been called the development of a stakeholder economy/capitalism in recent years. In this process, it is important that businesses work hard to define their external and internal stakeholders. It should be borne in mind that nature is one of the main stakeholders in all operations. Examples of internal stakeholders of companies: employees and managers, owners and senior management. Examples of external stakeholders of companies: nature, customers, the wider community and society as a whole, suppliers, authorities, non-governmental organizations (which protect certain interests) and competitors.

  • Hringrásarhagkerfið, sem hægt er að kynna sér í Leiðarvísi Festu, er eitt af þeim lykilverkfærum sem blasa við okkur í uppbyggingu sjálfbærs heims. Við varðveitum auðlindir, lágmörkum sóun og stuðlum að félagslegu sanngirni með því að færa okkur frá viðskiptamódelum sem byggja á línulegum framleiðsluferlum yfir í að hanna og framleiða út frá hringrása.

  • Áherslur sjálfbærni kalla á uppbyggingu nýrra viðskiptamódela þar sem hugað er að því að kjarnastarfsemi rekstrareiningar leggi sitt fram til að byggja upp sjálfbæran heim. Færum okkur frá því að innleiða sjálfbærni sem hliðarverkefni í gömul viðskiptamódel og byggjum upp ný módel þar sem allur rekstur og kjarnastarfsemi hugar að sjálfbærni og UFS áherslum. Þannig verður sjálfbærni að sjálfu DNA erfðaefni fyrirtækisins og reksturinn fær fjölþættan tilgang og sjálfbærni leiðarljós í allri virðissköpun.

  • Umhverfisþættir, samfélagslegir þættir og góðir stjórnarhættir mynda UFS (á  ensku ESG). UFS er notað í samhengi við sjálfbærar fjárfestingar, sem eiga að stuðla að jákvæðum áhrifum á þessa þrjá þætti. Fjárfestar nota þannig þessi viðmið til að meta ábyrgar fjárfestingar. 

Festa's project

Festa's projects are categorized by three pillars of sustainability: people, earth, and prosperity. Click to view more.

Sustainable development has been defined as        development that meets the needs of the                present without compromising the ability of            future generations to meet their own needs.


United Nations – definition of sustainable development

‘A stakeholder in an organization is any group or      individual who can  affect or is affected by the        achievement of the organization’s                              objectives’.

A circular economy is a systemic approach to            economic development designed to benefit              businesses, society, and the environment. In              contrast to the ‘take-make-waste’ linear model, a    circular economy is regenerative by design and        aims to gradually decouple growth from the              consumption of finite resources


Ellen MacArthur Foundation.n

Markmiðið nú er að sjálfbærni og                              samfélagsábyrgð verði að DNA fyrirtækja og            stofnanna. Að allt sem fyrirtæki gera sé gert á          þeim forsendum að bera ábyrgð á áhrifum sem        þau hafa á fólk og náttúru.


Hrund Gunnsteinsdóttir, Fréttablaðið                        28.02.20202

Sustainability and social reports


It is important that Icelandic companies have a strong vision and commitment when it comes to sustainability. Disclosure of information about corporate sustainability is therefore very important. Investors, consumers and regulators are increasingly demanding sustainability and social responsibility, and therefore recognized, international methods and metrics for disclosing the goals and vision of companies and other organizations are becoming increasingly important. Quality is of the essence and the data needs to be comparable.


Every year, Festa, the Icelandic Chamber of Commerce and Stjórnvísi present awards at a ceremony for the Sustainability Report of the year. Nominations are invited and are considered by a three-member jury.


Sjálfbærniskýrsla ársins (afhendingarár)


  • 2018 – Landsbankinn
  • 2019 – Isavia
  • 2020 – The Crown
  • 2021 – BYKO & Landsvirkjun
  • 2022 – Retailers' Pension Fund and PLAY
  • 2023 – Marel



Hér til hægri á síðunni er hægt að nálgast þær skýrslur sem tilnefndar hafa verið.


Better investment optionPáll Harðarsson, former CEO of Nasdaq Iceland, has said that social responsibility, measurement and reporting can make a difference in access to capital. He has also said that companies that practice social responsibility and sustainability are “a better investment option in the long term and that such investments involve less risk.”


An efficient financial market is a powerful driving force


Rey

nsla

The past few years have shown that companies that prioritize sustainability are more successful than other companies, and investing in such companies yields more returns. One study after another shows these results. There is a correlation between sustainability and operating performance. It should therefore come as no surprise that investors are starting to pay attention to this connection. This development is reassuring because efficient financial markets are one of the most powerful drivers of change in society.


Í Leiðarvísi Festu má nálgast upplýsingar um fjölda tækja og tóla sem nýta má við gerð sjálfbærni og samfélagsskýrslna.


The National Library of Iceland's electronic archive takes reports into custody, thereby increasing their accessibility and historical value – submissions are made here. Annual reports of companies are subject to the law on mandatory submission as published material intended for distribution – further information can be found here.


Sustainability Reports 2022


Sustainability Reports 2021


Community Reports 2020


Community Reports 2019


Community Reports 2018


Community Reports 2017

Consultants

Here you can access a list of consultants who help companies and other business units implement sustainability in strategy, financing and operations.

Company