In 2021 the Company continued to work to centralise and improve procurement functions across all its operations as responsible procurement has been identified as a material issue for Icelandair. In 2020 we implemented a Code of Conduct for suppliers and set targets with regards to responsible procurement and to ensure a responsible supply chain. By the end of 2020 all critical domestic suppliers had received the Icelandair Supplier Code of Conduct and as of 2021 it had become an integral part of most new and renewed contracts. In 2021 a risk screening model to evaluate suppliers was developed and actions to act on the assessment were established. The current procurement processes involve the risk screening model to be one of the decision factors when choosing a supplier before a contract with a supplier is signed. The goal was that all significant suppliers had gone through the risk screening model by the end of 2021 but due to the operating circumstances caused by the pandemic that was not possible. We will continue to work towards that in 2022.

Icelandair respects human rights, as set out in the UN Universal Declaration of Human Rights and requires all its employees to treat others with trust, dignity, respect, fairness and equity. Iceland is considered to be one of the well-placed countries with regards to human rights and they are guaranteed by the Icelandic Constitution.

Icelandair has implemented an e-learning module on the Company's Code of Conduct. All cabin crew members have been trained in relation to human trafficking awareness and preventive actions. The Company respects fair labour practices and contractors, sub-contractors or work agencies working for Icelandair shall ensure that wages, wage-related obligations and safety in the workplace all comply with Icelandair standards.

Importance is placed on ensuring that employees respect the equal rights policy and conduct themselves within its spirit. All discrimination, such as based on gender, age, origin, religion, operating field, opinions or position in other respects, is not permitted. Icelandair's policy and its related actions against bullying, and sexual and gender-related harassment and violence include clear procedures and preventive measures. Information on the policy can be accessed on the Company’s intranet, together with a plan of action that details the options available to employees who feel victimised. All managers received appropriate training and open lectures were held for all employees to attend.

Icelandair conducts all its business in an honest and ethical manner and the integrity of each and every member of staff serves to maintain the good reputation and trust of the Company. All persons, representing or performing services for or on behalf of Icelandair must comply with applicable anti-bribery and anti-corruption legislation and policies, and Icelandair Code of Conduct. Icelandair anti-corruption and bribery policy applies to the entire Icelandair Group workforce at all levels and grades (whether permanent, fixed term or temporary), and all operations, subsidiaries and affiliates in all countries that the company operates in. The policy can be found on the Company website.