Sustainability

Iceland aims to achieve carbon neutrality before 2040 and to cut greenhouse gas emissions by 40% by 2030 under the Paris Agreement. A Climate Action Plan, updated in 2024, contains 150 actions and is Iceland’s main policy instrument to reach its goals of cutting emissions and reach carbon neutrality.

Iceland's ESG targets include reducing greenhouse gas emissions, becoming carbon neutral, and transitioning to renewable energy. 

Climate change

• Emissions: Reduce greenhouse gas emissions by 40% by 2030 and achieve carbon neutrality by 2040.
• Transportation: Transition to renewable energy in transportation, with at least 40% renewable energy by 2030.
• Fossil fuels: Become fossil fuel-free by 2050. 
• Energy security: Ensure energy security during natural crises. 

Environmental protection 

• Nature conservation: Triple the area of protected nature conservation areas since 2006.
• Waste management: Improve the recycling ratio of household solid waste.
• Air quality: Reduce emissions of soot and particulate matter.
• Wetlands: Reclaim drained wetlands to curb emissions.

Sustainable development

• Gender equality: Achieve equal pay for women and men for work of equal value. 
• Energy: Increase funding for climate mitigation projects.
• Sustainable business practices: Optimize pallet utilization, introduce returnable packaging, and optimize journeys.

Iceland’s Climate Action Plan can be found here.

Iceland’s progress addressing the UN’s Sustainable Development Goals can be found here.

Across a wide array of industries, Icelandic companies are collectively committed to combating climate change and making a positive impact on both the environment and their local communities. They are increasingly integrating sustainability into their operations, with many publishing detailed annual reports to demonstrate their environmental and social initiatives. Of the twenty-nine companies in the index, 75% have released annual sustainability reports. Furthermore, over half of the companies are members of the UN Global Compact and have committed to net zero greenhouse gas emissions by 2040. Many others have outlined steps to decrease greenhouse gas emissions each year as well as adopted international environmental guidelines in their company operations. With Iceland’s carbon neutrality and greenhouse gas targets under the Paris Agreement, numerous companies in Iceland have accepted and implemented these practices for the betterment of their communities.