Environmental, social and governance (ESG) accounting

This is the second sustainability report of Icelandair Group made with reference to Nasdaq's ESG Reporting Guide, issued in 2019. These guidelines are based on guidance from the United Nations' Sustainable Stock Exchange Initiative and The World Federation of Exchange. The report should include all information to fulfil the Icelandic law (3/2006, 66. gr. d.) on non-financial reporting, as amended with reference to EU directive 2013/34 in year 2016.

Environmental metrics
Units 2020 2019
E1 GhG Emissions
Total amount, in CO2 equivalents, for Scope 1 tCO2e 355,779 1,358,972
Total amount, in CO2 equivalents, for Scope 2 tCO2e 214 515
Total amount, in CO2 equivalents, for Scope 3 tCO2e 174 695
E2 Emissions Intensity
Total GhG emission per output scaling factor tCO2e per USDk 0.82 0.90
tCO2e per FTEs 143 288
tCO2e per passenger 0.47 0.31
Fuel burn per 100 revenue passenger kilometres l/100RPK 4.37 3.55
Fuel burn per operational tonne kilometre l/OTK 0.4117 0.2991
Total non-GhG emissions per output scaling factor - -
E3 Energy Usage
Total amount of energy directly consumed (fossil fuels) kWh 1,474,663,115 5,547,715,498
Total amount of energy indirectly consumed (electricity and heat) kWh 24,223,530 58,312,823
E4 Energy Intensity
Total direct energy usage per output scaling factor kWh per USDk 3,457 3,726
kWh per FTEs 603,660 1,188,977
kWh per passenger 1,965 1272
E5 Energy Mix
Non renewable energy (Fossil fuels are the primary energy source) % 98% 99%
Renewable energy % 2% 1%
E6 Water Usage
Total amount of water consumed m3 330,923 908,788
Total amount of water reclaimed m3 - -
E7 Environmental Operations
Does your company follow a formal Environmental Policy Yes/No Yes Yes
Does your company follow specific waste, water, energy, and/or recycling policies Yes/No Yes Yes
Does your company use a recognized energy management system Yes/No No No
E8 Climate Oversight / Board
Does your Board of Directors oversee and/or manage climate-related risks Yes/No No No
E9 Climate Oversight / Management
Does your Senior Management Team oversee and/or manage climate-related risks Yes/No No No
E10 Climate Risk Mitigation
Total amount invested, annually, in climate-related infrastructure, resilienve, and product development - -
Social data metrics
Units 2020 2019
S1 CEO Pay ratio
CEO total compensation to median FTE total compensation ratio 4.41 6.25
Does your company report this metric in regulatory filings Yes/No Yes No
S2 Gender Pay Ratio
Median male compensation to median female compensation (basic earnings) % -0.93 0.24
Median male compensation to median female compensation (regular earnings) % 2.86 1.87
S3 Employee Turnover
Year-over-year change for full-time employees % 69% 16%
S4 Gender Diversity
Total enterprise headcount held by men and women women/men% 48/52 53/47
Entry- and mid- level positions held by men and women women/men% - -
Senior- and executive-level positions held by men and women women/men% 38/62 33/67
S5 Temporary Worker Ratio
Total enterprise headcount held by part-time employees women/men% - -
Total enterprise headcount held by contractors and/or consultants women/men% - -
S6 Non-Discrimination
Does your company follow a sexual harassment and/or non-discrimination policy Yes/No Yes Yes
S7 Injury Rate
Frequency of injury events relative to total workforce time - -
S8 Global Health & Safety
Does your company follow an occupational health and/or global health & safety policy Yes/No Yes Yes
S9 Child & Forced Labor
Does your company follow a child and/or forced labor policy Yes/No Part of CoC Part of CoC
If yes, does your child and/or forced labor policy also cover suppliers and vendors Yes/No Part of SCoC -
S10 Human Rights
Does your company follow a human rights policy Yes/No Yes Yes
If yes, does your human rights policy also cover suppliers and vendors Yes/No Yes -
Governance Metrics
Units 2020 2019
G1 Board Diversity
Total board seats occupied by women (as compared to men) % 40% 40%
Committee chairs occupied by women (as compared to men) % 25% 33%
G2 Board Independence
Does company prohibit CEO from serving as board chair Yes/No Yes Yes
Total board seats occupied by independants % 100% 100%
G3 Incentivized Pay
Are executives formally incentivized to perform on sustainability Yes/No No No
G4 Collective Bargaining
Total enterprise headcount covered by collective bargaining agreements % 97% 99%
G5 Supplier Code of Conduct
Are your vendors or suppliers required to follow a Code of Conduct Yes/No Yes No
G6 Ethics & Anti-Corruption
Does your company follow an Ethics and/or Anti-Corruption policy Yes/No Yes Yes
If yes, what percentage of your workforce has formally certified its compliance with the policy % 100% of new employees -
G7 Data Privacy
Does your company follow a Data Privacy policy Yes/No Yes Yes
Has your company taken steps to comply with GDPR rules Yes/No Yes Yes
G8 ESG Reporting
Does your company publish a sustainability report Yes/No Yes Yes
Is sustainability data included in your regulatory filings Yes/No Yes Yes
G9 Disclosure Practices
Does your company provide sustainability data to sustainability reporting frameworks ? Yes/No No No
Does your company focus on specific UN Sustainable Development Goals (SDGs) Yes/No Yes Yes
Does your company set targets and report progress on the UN SDGs Yes/No Yes Yes
G10 External Assurance
Are your sustainability disclosures assured or validated by a third party Yes/No No No