Sustainability Initiative
The Sustainability Initiative of Landsvirkjun and Alcoa Fjardaal aims at monitoring the social, environmental and economic impacts of the Kárahnjúkar Hydroelectric Project and the aluminum smelter.
The two companies joined hands with representatives of stakeholders to create an advisory group. The role of the advisory group was to develop sustainability indicators and metrics to measure performance of the companies involved.
A total of 45 indicators have been developed, defining project impacts that should be monitored. Attached to the indicators are metrics stipulating what will be monitored. These metrics will be monitored, results will be registered and presented and the companies will then react if the results show some unexpected changes.
The combined projects for electricity and aluminium production represent the largest construction projects and investments in Icelandic history. As would be expected for an infrastructure project of this magnitude, the projects have received a mixture of public support and scrutiny from domestic and international stakeholders. The environmental, social, and economic opportunities and challenges in building a new aluminum smelter and hydropower projects are significant.
The findings of the Environmental Impact Assessments (EIAs), which have been conducted for each of the projects, have been controversial, specifically with respect to environmental issues. The EIA found that, while the projects impact the environment, those impacts could largely be mitigated through specific measures, as defined in the final authorization for the projects. The EIAs also recognized the predicted social and economic benefits of the projects.
Landsvirkjun's environmental policy for the Karahnjukar project is to develop a state-of-the-art hydroelectric facility while minimizing disturbance of the environment. In addition, Landsvirkjun is committed to ensuring that the project provides social and economic benefits to local communities.
Landsvirkjun wants to demonstrate a long-term commitment to these objectives by working with others on the Sustainability Initiative.
For further information on the Sustainability Initiative see www.sustainability.is.