Environmental, social and governance (ESG) accounting

The following sustainability information is presented in accordance with Nasdaq's ESG Reporting Guide 2.0. issued in February 2020. As part of Icelandair's Annual and Sustainability report, it provides a comprehensive insight into the Company's approach to sustainability and should include all information to fulfill 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	2021	2020
E1 GhG Emissions
Total amount, in CO2 equivalents, for Scope 1	tCO2e	486,064	355,779
Total amount, in CO2 equivalents, for Scope 2	tCO2e	213	214
Total amount, in CO2 equivalents, for Scope 3	tCO2e	68	174

E2 Emissions Intensity
Total GhG emission per output scaling factor	tCO2e per USDk	0.83	0.82
	tCO2e per FTEs	233	143
	tCO2e per passenger	0.33	0.47
Total non-GhG emissions per output scaling factor		-	-

E3 Energy Usage
Total amount of energy directly consumed (fossil fuels)	kWh	1,973,201,386	1,474,663,115
Total amount of energy indirectly consumed (electricity and heat)	kWh	22,904,111	24,223,530

E4 Energy Intensity
Total direct energy usage per output scaling factor	kWh per USDk	3,413	3,457
	kWh per FTEs	957,824	603,660
	kWh per passenger	1,366	1,965

E5 Energy Mix
Non renewable energy (Fossil fuels are the primary energy source)	%	99%	98%
Renewable energy	%	1%	2%

E6 Water Usage
Total amount of water consumed	m3	346,556	330,923
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	Yes (fossil fuel)	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	2021	2020
S1 CEO Pay ratio
CEO total compensation to median FTE total compensation	ratio	6.4	4.41
Does your company report this metric in regulatory filings	Yes/No	Yes	Yes

S2 Gender Pay Ratio
Gender pay analysis (basic earnings)	%	women 0,3% lower than men	women 0,93% lower than men
Gender pay analysis (regular earnings)	%	men 3% higher than women	men 2,86% higher then women

S3 Employee Turnover
Year-over-year change for full-time employees	%	7%	69%

S4 Gender Diversity
Total enterprise headcount held by men and women	women/men%	45/55	48/52
Entry- and mid- level positions held by men and women	women/men%		-
Senior- and executive-level positions held by men and women	women/men%	25/75	38/62

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	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	Yes

Governance Metrics
	Units	2021	2020
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%	25%

G2 Board Independence
Does company prohibit CEO from serving as board chair	Yes/No	Yes	Yes
Total board seats occupied by independants	%	80%	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%	97%

G5 Supplier Code of Conduct
Are your vendors or suppliers required to follow a Code of Conduct	Yes/No	Yes	Yes

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	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

G9 Disclosure Practices
Does your company provide sustainability data to sustainability reporting frameworks ?	Yes/No		No
Does your company focus on specific UN Sustainable Development Goals (SDGs)	Yes/No		Yes
Does your company set targets and report progress on the UN SDGs	Yes/No		Yes

G10 External Assurance
Are your sustainability disclosures assured or validated by a third party	Yes/No		No