E10 Climate Risk Mitigation

Promotes UN‘s
Sustainable Development Goals
Climate action

The green financing framework of Reykjavik Engergy (OR) covers all financing at company, whether it is loans, bonds, or other financing.

The Carbfix technology, is being applied at Hellisheiði Geothermal Power Plant, one of OR's two geothermal power plants as a mitigation measure against climate change. Preparations for a pilot plant at Nesjavellir Geothermal Power Plant have been ongoing in 2022 and will start operating in 2023. This is a direct response to the climate crisis and a part of Reykjavik Energy Group's significant contribution to Iceland's plan to reduce its greenhouse gas emissions. Additionally, the Group has been issuing green bonds and green loans for climate change adaptation projects. Operating an environmentally and socially sustainable business, constituting the basis of Reykjavik Energy Group’s long-term strategy. Sustainable financing is a key part of the strategy, and the framework offers investors the opportunity to support the transition to a low-carbon and climate resilient future.

In 2022, Reykjavik Energy Group funded various new green and climate friendly projects for a total of ISK 10,7 billion. These projects were, e.g., energy production from renewable sources, such as geothermal electricity production and the expansion of district heating utilities, automatic meter reading of utilities systems, carbon dioxide sequestration in basaltic bedrock, projects to boost the resilience and adaption of utilities systems to climate change, and more. This funding amounts to 19% of the turnover of Reykjavik Energy Group. Eligible projects for green funding are selected by an interdisciplinary team within the Group, and a review is performed by an external agency.