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Landsvirkjun was guided by social responsibility principles long before the concept became mainstream

Increased awareness on the issue of social responsibility inspired the Company to begin the development of its own policy, based on the international standard on social responsibility - ISO 26000. A report was subsequently published in 2009, outlining how the Company operates in terms of social responsibility. The report analysed active work practices and identified ways to improve the future performance of the Company.

Landsvirkjun’s systematic approach to social responsibility is based on the aforementioned standard and the main definitions therein.

Landsvirkjun outlined its key objectives in six areas following internal consultation and external communication with stakeholders: Corporate governance, the value chain, the environment, society, human resources and knowledge sharing.

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Goals 2016

Every year, we develop an annual action plan defining one or more targets for each main category for that particular year. This enables the Company to increase the positive impact on the environment as well as minimising the negative. The objectives are introduced on the Company website at the beginning of each year and their progress is monitored throughout the year. They are assessed and re-evaluated as the next New Year begins and new objectives are set.

Some of the objectives and the projects associated with them are supported by policies or rules that Landsvirkjun has deemed necessary. This is one way of offering stakeholders more transparency with regard to our operations and to communicate their expectations of the Company. These measures also ensure a common understanding of certain topics at a cross-divisional level.

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Global Compact progress report

The first UN Global Compact progress report was submitted this year.

Green steps

Landsvirkjun managed to achieve the first step of the five Green Steps program in cooperation with the Environment Agency of Iceland. This involves a number of actions to reduce the waste of valuable resources and to make office operations more environmentally friendly.

Carbon Disclosure Project

Landsvirkjun submitted its first report to the Carbon Disclosure Project (CDP) in accordance with the requirements of membership outlined for the Caring for Climate project and its registered NAZCA (Non-State Actor Zone for Climate Action) objectives.

Energy generation in harmony with the environment and in consensus with society

Landsvirkjun is committed to sustainable energy generation, in harmony with the environment and in consensus with society. A clear environmental policy, extensive research and environmental monitoring all contribute to enabling the Company to reduce any negative impact from its operations.

Communication Plans

Communication with stakeholders is important to Landsvirkjun. A communication plan was developed in 2016 for all operational power stations, power projects under construction and preparation.

Dividends

Dividends paid to owners.

Role in employment opportunities

Landsvirkjun has always placed an emphasis on land reclamation and forestry. The Búrfell Hydropower Station began operations in 1969 and a number of young adults were recruited for summer projects including planting and sowing.

Landsvirkjun has for decades run an enterprise called “many hands lighten the load”. The initiative offers summer employment to young people between the ages of 16–20 and various organisations can ask them to contribute their work to environmental projects. The initiative is an important contribution to employment opportunities for young adults as it gives them the opportunity to familiarise themselves with the Company’s operations. University students are also offered various summer positions.

Preparation for the recruitment of summer staff for 2017 will be completed in 2016 with the aim of offering jobs to a more diverse group of young adults. The Company hopes to reflect the diverse social structure in which we live.

Proportion of female managers

The goal of increasing the number of female managers to more than 30% was not achieved

Wage equality

The gender wage difference was under 1% according to the audit carried out by PWC

Accidents

There was one accident related absence this year

Energy Research Fund

Contributions to the Energy Research fund were increased by 3.5%

Sustainability indicators

33 sustainability indicators were developed to monitor the northeast