Finance
Green and gender bonds to help Iceland ‘live up to its image’, says finance minister
Iceland consistently ranks as the most gender-equal country in the world, according to the World Economic Forum’s Global Gender Gap report. The “land of fire and ice” also has an abundance of renewable energy, with almost 100 per cent of energy consumed by the country coming from renewable sources such as geothermal energy.
But even countries that are in relatively good shape on gender and climate still need to tap the ESG bond markets, as Iceland’s minister of finance and economic affairs, Sigurður Ingi Jóhannsson, told The Banker.
He was visiting the London Stock Exchange on May 31 where he opened the day’s trading to mark the occasion of Iceland’s inaugural green bond valued at €750mn, which it issued back in March under the country’s sustainable financing framework. The green bond attracted a record 280 investors, the biggest interest shown from investors in an Icelandic transaction, according to the Icelandic government.
Green, social and blue bonds can be issued by Iceland’s treasury through the framework, which it published in 2021, and updated last year. Jóhannsson spoke to The Banker about the country’s sustainable financing framework and its plans for future issuances, including a gender bond.
The interview has been edited for clarity and brevity.
Q: Why did Iceland issue its first green bond earlier this year?
A: Iceland has worked on its sustainable financing framework and we have used the last few years to consider the latest news and developments on green bonds and how the market is responding. The sustainable financing framework that we were working on in 2021 was a little bit delayed initially due to a general election in Iceland and the Covid-19 pandemic. So you have to choose when you think is a good time to issue a green bond, and that time for us was now.
Being a very green country, it is also like a statement: We want to live up to our image. We started with a green bond because we aim to be carbon neutral by 2040 and totally get rid of fossil fuels by 2050. The bond will help finance the transition in Iceland.
The final issuance size was nine times what was initially offered — we have never seen anything like that
We have already done a lot in the past few decades — with 84 per cent of energy coming from renewables — but there are still a lot of things to invest in, such as roads, the maritime industry, green buildings and adaptation to climate change. We are looking to get funding on all of these areas within the framework.
The green bond was welcomed by the market; there were over 270 investors taking part such as central banks and official institutes, bank treasuries, insurance companies and other institutional investors, mainly from northern Europe. The final issuance size was nine times what was initially offered — we have never seen anything like that. We also had broader investors than we have had before. It’s a high-quality investor group and the majority tend to hold it to maturity, so there’s actually more demand for it than supply. Proceeds from the bond issuance in March are for finance expenditures from 2024-2026.
From northern Europe’s perspective, the green bond showed that the Icelandic economy is strong and that everything we are doing inside of the sustainability framework is good. The market is looking forward to what we are going to do next.
Q: Does Iceland have plans to issue more bonds, and if so, what type?
A: There won’t be another green bond this year, but we don’t know about the future. We are also exploring gender bonds; that is our next step. Even though we are at the forefront [of gender equality], we want to lead by example. By doing this, we could encourage other countries to do the same.
Gender bonds will clearly help us in co-operation with other countries [such as support for other countries as they look to improve gender equality], but we will also find some interesting projects domestically in Iceland because even though we are at the top in terms of gender, we still do not have total gender equality.
But being at the forefront of gender equality for many years helps us in a positive way to gain more credibility with gender bonds because we have a story to tell about it. We anticipate a lot of investor interest when we issue a gender bond. [Jóhannsson gave no indication as to when a gender bond is likely to be issued.]
Blue bonds are also in our sustainability framework, so they are a possibility for the future. We are quite lucky with the sustainable fisheries policy that we have had for a few decades, which is probably the most efficient in the world, and means our oceans are still quite clean.
Q: What challenges does Iceland face when it comes to the energy transition?
A: The biggest transition challenges we face are in [the] road transport and maritime [industries]. We have done a lot in terms of electrification of cars. Last year, the majority of imported cars were electric cars. The challenge is more in heavier vehicles and maritime transport, even though they have succeeded in replacing the use of fossil fuels, almost by 43 per cent in the last 10 to 15 years.
For heavier vehicles and maritime transport, the biggest challenge is the lack of an alternative energy source: it could be hydrogen or ammonia. We have to invest in these alternative energy sources in Iceland, as well as in other countries producing them, because there will be much more demand in the next decade than we will be able to produce domestically. Green bonds can help fund the production of those energy sources. As a small nation, if we are able to produce hydrogen, for instance, for the maritime industry or for heavy vehicles, even for aeroplanes in the future, we could also export it to other countries.
We are on track to achieve carbon neutrality by 2040, but investment in the next few years is critical, and not only investments by the government, but also by municipalities and companies. I cannot not say with 100 per cent certainty that we will succeed. But without this goal, we will certainly not get there.
Developing the sustainability framework was also about gaining the verification and certification that what we are doing meets expectations, and that the policies we are working on, both environmentally and economically, point in the same direction. We are on a clear path to invest more in the green and just transition, which is where a gender bond could help.
Within the global manufacturing industry, maintaining a competitive edge requires a delicate balance between driving internal efficiency and fostering strong external relationships. For Applied Materials, a leader in materials engineering solutions for the semiconductor industry, this challenge became the foundation for a strategic finance transformation program, with an SAP Taulia solution emerging as a key enabler.
The journey began in early 2019 with the launch of Agile Finance, an end-to-end transformation initiative designed to support the company’s aggressive growth trajectory, which included a goal to double in size. The initiative was built around three strategic pillars: enhancing the efficiency and effectiveness of the finance organization, promoting career fulfillment, and establishing a robust digital operating model. The impact was significant, with the finance function achieving approximately 35% productivity gains in its labor force.
The third pillar—the move to a digital operating model—is where the partnership with SAP Taulia began.
“The SAP Taulia Dynamic Discounting solution was introduced not merely as a cost-cutting measure, but as a strategic tool to transform and digitize the interaction with Applied’s extensive, global supplier base,” Junaid Ahmed, corporate VP, Finance at Applied Materials, says. “We understood that to reap the benefits of digitization, we had to ensure the suppliers were on board. It needed to be a win-win outcome.”
Unprecedented flexibility for suppliers
The program empowers suppliers—thousands of them worldwide—to self-select which approved invoices they wish to discount for early payment. This is not a continuous, all-or-nothing commitment but rather a decision made on an invoice-by-invoice basis. This flexibility allows suppliers to manage their working capital needs with greater precision, taking advantage of early payment during their own critical periods, such as quarter-end or year-end, to help meet their own financial targets.
The system also drastically improves transactional efficiency. Suppliers no longer have to call Applied to track invoice status, approval, or payment date. All this information is available 24/7 in the SAP Taulia solution, reducing resource allocation on both sides and ensuring both reap the benefits of moving to an integrated, digital system.
Strategic benefits for Applied Materials
For Applied, the program is a testament to its focus on balancing efficiency with strong supplier relationships. The philosophy is a “win-win” built on a crucial spread: Applied Materials, as a Fortune 500 company with strong cash flow, has a significantly lower cost of capital than many of its suppliers. By funding the discounts, Applied captures a return—the discount income—while offering its suppliers funding at a rate close to their cost of capital, but with greater convenience.
This relationship-focused approach is critical. Applied’s supplier account managers actively support the program because they recognize its mutual benefit, not viewing it as a finance mandate to push costs onto the supply base.
Furthermore, the “dynamic” nature of the discount rates is a powerful risk mitigation tool. Unlike fixed contractual discounts, the rates can be adjusted in response to global economic changes, such as shifts in interest rates. When interest rates rose after the pandemic, Applied was able to adjust the discount rates accordingly with minimal pushback, as the core proposition remains the valuable spread between the parties’ cost of capital.
The SAP Taulia Dynamic Discounting solution has been rolled out globally, giving all suppliers the opportunity to use it. This has been critical over the last 12 months as many businesses around the globe have been subject to new and often unexpected tariff costs impacting their margin and their liquidity.
“The flexibility of the solution means suppliers can access funds when they need them, which helps them navigate some of the economic uncertainty that many businesses are facing,” Dirk Holoubek, managing director, Finance Shared Services, explains. “2025 saw a 23% increase in usage of the discounts, reflecting the pressures that suppliers are feeling right now on their cash flow.”
The solution’s capability to drive sophisticated analytics is also a major strategic asset. It helps provide insights into the different costs of capital between Applied and its supplier base. This data allows for targeted outreach and communication, ensuring that the offer of capital support is proactively extended to the suppliers that need it most.
The strategic value of the solution is further cemented by its ownership. The acquisition of Taulia by SAP brings several advantages.
“Trust is really important to both us and our suppliers,” Ahmed says. “For our suppliers to adopt a new solution, they need to know its technology they can rely on in the long term. Being part of SAP creates that assurance in the long-term future of the program.”
Looking forward, Applied Materials is already focused on the next stage of the transformation project: Agile Finance 3.0, which is focused on enabling the organization to become AI-first. The company is deploying a global, organization-wide AI assistant to drive personal productivity, but the strategic application of AI in the supplier management space is even more profound.
AI is expected to transform decision-making enablement by analyzing critical information and communicating effective options. In the future, AI will be able to proactively assess the specific needs and attributes of the supplier base, enabling Applied to address issues more quickly and resolve them earlier. The benefits are already tangible in e-invoicing: AI has made the solution more flexible and “human-like,” capable of reading minor changes in invoice format that would have previously caused electronic errors. This reduced rigidity and increased flexibility are directly contributing to the overall efficiency of the digital operating model.
By leveraging the SAP Taulia Dynamic Discounting solution, Applied Materials has not only digitized a process but also strategically transformed its financial operations, creating a system that is agile, resilient, and focused on maintaining mutually beneficial relationships with its global supplier ecosystem.
Cedric Bru is CEO of SAP Taulia.
Finance
Houston budget amendment would give financial assistance to help those impacted by a trash fee
HOUSTON, Texas (KTRK) — Houston City Council could soon consider whether to offer financial assistance to help those who may struggle to afford a proposed trash fee.
This month, council will approve a budget. In it, Mayor John Whitmire doesn’t increase taxes.
However, he does want to charge a $5 monthly fee to cover trash services. A plan to help close the city’s nearly $200 million deficit that doesn’t add up to some.
Speaking in front of council on Wednesday, Super Neighborhood 64 president Lindsay Williams brought more than concerns, she had numbers surrounding the mayor’s proposed $5 monthly trash fee.
A plan his team says could climb to $25 a month by 2032. If it does, Williams told council that $300 annual cost would be just .15% of a $200,000 income.
For someone making $15,000, it’s two percent. “More than 13 times the burden for the same trash, same truck and same fee, but not the same pay,” Williams explained.
However, Controller Chris Hollins said the mayor’s not being truthful about the real cost.
“Houstonians are not stupid,” Hollins said. “We should not treat Houstonians like they’re stupid.”
Hollins said the cost may need to be $40 a month. Whitmire didn’t respond to Hollins during the meeting when he asked if he plans to increase the fee.
No matter the cost, some council members want to offer financial relief. Right now, there are no exceptions.
However, an amendment council will consider from Council Member Alejandra Salinas next week would change that.
“If they for whatever reason met the threshold and need an additional need because of the administrative fee, our amendment would allow them to apply for funds through the water fund,” Salinas said.
The trash fee wasn’t the only item from the mayor’s seven and a half billion dollar budget proposal that sparked debate. Hollins said a plan to divert money away from water utilities could drain a billion over the next five years from infrastructure money.
Whitmire disagrees saying there’s more than enough funds to handle the change, and continue with projects.
“We’ve all admitted the budget’s not perfect, but certainly it’s a first start that Houstonians understand and it’s a shame it’s being so politicized because it’s literally people’s lives and death,” Whitmire said.
Council will vote on amendments next week. It has to have a new budget in place by the end of the month.
Copyright © 2026 KTRK-TV. All Rights Reserved.
Reader question: My spouse has little interest in our financial position. As we age, this concerns me. I try to share some basic information (income, spending, account balances, debt, and so on) each month but rarely get a response. I think graphs or charts might be of more interest to her than a bunch of numbers. What recommendations would you have for illustrating our financial position so that I am not the only person aware of how we are situated? Thanks!
Answer: Your situation is pretty common. Most couples I know develop a division of labor over time, where one person is in charge of financial matters and the other person is less involved. That’s definitely the case for my husband and me. He’s in charge of paying all the monthly bills and preparing our tax returns, but the financial planning and investment decisions are up to me. This type of arrangement might work well for a long time, but can become less sustainable with age, particularly if the “finance person” in the relationship dies or develops a major health issue.
Online tools and mind maps
Illustrating your financial situation with charts and graphs is a great idea that might help your spouse become a little more involved. Morningstar’s Portfolio X-Ray tool includes a variety of images that help illustrate your financial situation. Websites for most major brokerage firms also include some visual tools. Schwab, for example, offers a Portfolio Checkup and a bar graph illustrating your account’s monthly income from dividends and interest income. Vanguard has a Portfolio Watch tool and a variety of performance illustrations, tools, and calculators.
A mind map, which we used with clients when I worked for a financial advisory firm, can be another way to picture your entire financial situation on one page. There are various softwaretemplates for drawing a mind map, or you can simply sketch it out with a large sheet of paper and a pencil. Start with your names at the center of the page. Then draw spokes connecting to various categories, such as names of other family members; investment accounts; real estate and other assets, insurance policies, estate plans, key goals and values, and contact information for accountants, estate planners, and other professionals. It can be helpful to go through the mind map together and make any updates needed at least once a year.
Other ways to communicate about money
A few other ideas—though not related to charts and graphs—might also be useful.
I like the idea of putting together a net worth statement that itemizes cash, taxable accounts, real estate, retirement accounts, and debt for each member of the couple as well as items owned jointly. It’s a good idea to update this document at least once a year and discuss it as a couple. If you set up the document as a spreadsheet, you can include columns with additional information such as account numbers, what each account is used for, which accounts are subject to required minimum distributions, or tax issues like potential capital gains.
Many couples also put together a binder (sometimes humorously called a “Doomsday Book”) that contains information about where to find important paperwork, insurance policies, how bills are paid, what each account is for, steps the surviving spouse will need to take, final wishes, and any other critical information.
A well-qualified financial adviser can bridge the information gap
Finally, you could consider working with a good financial adviser, who can help involve your spouse in financial matters while you’re still living and step in to fully manage investments and personal finance decisions if you pass away before your spouse. Make sure the adviser holds the Certified Financial Planner designation and charges fees that are reasonable. Although a 1% fee is still the industry standard for accounts of $1 million or less, it’s possible to find advisers who charge significantly less, including a few who price their services based on hours worked instead of a percentage of assets under management.
_____
This article was provided to The Associated Press by Morningstar. For more personal finance content, go to https://www.morningstar.com/personal-finance.
Amy C. Arnott, CFA, is a portfolio strategist for Morningstar and co-host of The Long View podcast.
Related links:
What If This Turns Out to Be a Terrible Time to Retire?
https://www.morningstar.com/personal-finance/what-if-this-turns-out-be-terrible-time-retire
Bill Bengen: ‘Inflation Is the Greatest Enemy of Retirees’
https://www.morningstar.com/retirement/bill-bengen-inflation-is-greatest-enemy-retirees
3 Big Questions to Ask Your Aging Parents
https://www.morningstar.com/personal-finance/3-big-questions-ask-your-aging-parents
Copyright 2026 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.
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