Social Financing Framework
Social financing, or so-called red financing, includes bond issues and other financial instruments, where funds are used to finance assets or projects that have a positive social impact, e.g. in line with the United Nations Sustainable Development Goals.
With an increasing emphasis on corporate social responsibility, more and more investors are looking for certified investment options such as red bonds.
Emphasis on the United Nations Sustainable Development Goals
Reykjavík University has put together a Social Financing Framework, in line with the University's policy and the United Nations Sustainability Goals.
According to the framework, eligible projects fall under the United Nations Sustainable Development Goals 4, 10, 11 and 17. There are goals for education for all, greater equality, sustainable cities and communities, and cooperation on those goals. Eligible projects should also promote: access to essential services, such as education, socio-economic development and empowerment, and affordable housing.
Disclosure of information
To ensure alignment with international guidelines and best practices, S&P Global Ratings' opinion was obtained on this framework. Their report states that the company believes that the Social Financing Framework is in line with the four pillars of red financing according to Social Bond Principles 2021 (SBP) and Social Loan Principles 2021 (SLP).
In accordance with the Social Financing Framework, the University will publish annual reports on the allocation of funds raised under the framework and their impact on social projects. Reports in this regard will be available on RU's website.
