Landsvirkjun is a member of the UN Global Compact which is a global criterion for social responsibility.
This commits the Company to following the principles issued by the UN on human rights, labour rights, environmental issues, and anti-corruption guidelines.
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Human rights and the work environment
A more diverse workforce
A pilot project was launched in the summer of 2017, giving young autistic individuals the opportunity to gain experience in the labour market. Eight individuals were invited to work in the environmental group at Landsvirkjun, in Reykjavík. The project was run in collaboration with the Secondary School in Kópavogur and Specialisterne in Iceland who offered their support during the completion of the project as well as any assistance required in the case of any unforeseen incidents. Landsvirkjun’s employees were also offered information and education on autism.
The project was successful and valuable experience was gained by both the group and employees. The experience gained by each individual differed as did their continued journey within the labour market. One individual was offered full-time employment in another field following their experience with Landsvirkjun.
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Increased protection of the workforce – Value chain
Landsvirkjun implemented rules on chain reliability after they had been approved by Landsvirkjun’s Board in August, 2016. The rules are intended to ensure that any counterparty working indirectly for Landsvirkjun (contractors, sub-contractors or temporary work agencies) enjoy rights and employment terms in accordance with the law and wage contracts.
Provisions for the value chain have been incorporated into all Landsvirkjun's procurement agreements (work contracts, contracts of sale and contracts for the purchase of services). According to the provisions, the contractor shall ensure that all employees, whether hired by contractors, subcontractors or temporary work agencies, receive salaries, terms of employment, sickness and accident insurance and other rights in accordance with the agreement, current collective agreements and laws at any given time.
The contractor must also be in possession of valid insurance for all contractor employees, covering any accidents, sickness, illness, medical costs or deaths that occur during construction. The contractor is also responsible for ensuring that any sub-contractors, temporary work agencies and their employees also have valid insurance.
Penalties can and will be enforced in the case of any violations with regard to chain responsibility or if the counterparty does not provide the requested information. Landsvirkjun reserves the right to enforce these penalties to ensure compliance with the regulations.
Human Rights Policy
Preparation work for Landsvirkjun's Human Rights Policy was carried out in 2017 but has not been completed. The Human Rights Policy is due to be published in 2018.
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Environmental issues
The environmental action plan and its objectives were successfully implemented in 2017. One of these objectives was the assessment of 40% of the Company hydropower stations using the Hydropower Sustainability Assessment Protocol (HSAP), which is assessed by independent external parties. This objective was achieved.
Targets have been set for decreased fuel consumption, reduced waste generation and increased waste classification. Landsvirkjun will be carbon-free by 2030 and has already achieved set goals for the increased percentage of electric cars in the Company's fleet, renewable energy investments and the multi-purpose use of geothermal energy, as well as the successful implementation of an action plan for carbon offsetting.
The set objectives for ‘operations without environmental incident’ were not achieved in 2017, but environmental incidents did decrease by 50% between years. Approximately half of Landsvirkjun’s impact on the environment can be attributed to power generation construction projects undertaken by the Company.
Further information on Landsvirkjun's environmental performance can be found in the environmental chapter of the Annual Report and in the Company’s Green Accounts.
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Anti-corruption measures
Landsvirkjun's Code of Conduct for employees was published and implemented in December 2013. The code covers nine topics, including employee safety, the importance of integrity and respect, handling confidential information and conflicts of interest.
A Code of Conduct was subsequently implemented for suppliers and service providers, based on the principles set out by the UN Global Compact on human rights, labour rights, environmental issues and anti- corruption. The rules provide clear guidance on expectations with regard to healthy work and governance methods and were implemented in 2015, using the appropriate work procedures. There were no deviations from those procedures this year.
