Corporate social responsibility (CSR) is about eco efficiency; maximising the positive impact of business on society and the environment and diminishing the negative. It is about creating a business environment where transparency facilitates stakeholder engagement, giving them the opportunity to monitor and influence how businesses forge their relationship with society.

Long-term prosperity can only be achieved by setting high standards. Every year, Landsvirkjun outlines its key objectives, in six areas, in order to purposefully fulfil its policy on CSR. Please feel free to follow our progress in fulfilling our obligations on CSR.

Clicking on the tab below will enable you to familiarise yourselves with those key areas we have set out as our objectives each time. The circles show our progress. An empty circle shows that we are at the starting point of a project, a half full circle shows that we are progressing well and a full circle symbolises the completion of a project.

  • CSR is becoming the backbone of sustainability. Maintaining a healthy balance between the economy, the environment, society and our operations enables us to make a valuable contribution to this.

Corporate Governance

We operate in accordance with responsible corporate governance standards and adhere to the Company’s policy on ethical business practices in all our operations


Non-financial results

The Icelandic law on Annual Accounts (Act No. 3/2006) which is based on 2013/34/ESB, requires companies to provide non-financial results, which includes “information on environmental matters, social and employee-related matters, respect for human rights, anti-corruption and bribery matters”. Landsvirkjun will review its policy on equality with respect to human rights.


Continued support for UN Global Compact

Landsvirkjun observes the ten principles of the UN Global Compact, the United Nations' global consensus on ethics and responsibility in business. In 2016 Landsvirkjun will submit a progress report to the organisation for the second time since the Company became a participant in the Compact in November 2013.

The Compact entails a commitment to observe and implement ten principles that concern human rights, labour rights, the environment and anti-corruption and to report annually on the progress made on the Company's key actions relating to these issues.

The progress report will be published concurrently with other annual Landsvirkjun publications in 2016, i.e. its annual report and environmental report, and this arrangement will be maintained in the future. The objective is, among other things, to harmonise the Company's principal processes and the establishment of its goals.


Review the main processes within Landsvirkjun

The reassessment of Landsvirkjun’s main processes gives more definition and transparency to our work processes. We ensure continuous responsibility, increased flexibility and we simplify the corporate governance system that we adhere to. The process improves our ability to analyse all operations within our company based on objectives, value, risk and various other improvements and measurements.


Implementing an ownership policy in operations

The government has recently introduced an ownership policy for public limited companies and general partnerships in its ownership. In 2014, Landsvirkjun will make any improvements necessary in areas of its operations not already in compliance with the new ownership policy.

Implementation of the UN Global Compact in Landsvirkjun’s operations

Landsvirkjun signed the UN Global Compact in November, 2013 and is therefore committed to aligning its operations and strategies with ten universally accepted principles in the areas of human rights, labour, environment and anti-corruption. The Company must also produce an annual Communication on Progress report (COP) to account for its progress on matters of social responsibility. See: In 2014, Landsvirkjun was consistent in its efforts to improve operations in accordance with the ten principles of the Global Compact and published its first COP in November of this year. The report can be seen here: UN Global Compact - Communication on Progress


Verification and implementation of a code of conduct for Landsvirkjun

Landsvirkjun’s Code of Conduct was published and implemented in December, 2013. There are nine categories, including the health and safety of employees, the importance of integrity and respect in communication and the handling of confidential information and conflicts of interest. The first three months of 2014 will give employees the opportunity to provide feedback on our Code of Conduct which will then be made public.

Landsvirkjun’s Code of Conduct (PDF)

Value Chain

We work with suppliers and business partners who demonstrate responsible corporate governance


Green steps

Green steps are about systematically promoting eco- friendly operations. These steps primarily focus on ordinary office activities and have a positive impact on the environment, improve the working environment of employees and reduce operating costs.

In 2016, Landsvirkjun succeeded in fulfilling the first step of five in the Green Steps outlined by the Environment Agency. This includes various measures to reduce the waste of resources as well as making office operations more environmentally friendly. In 2017, the goal is to complete the implementation of the remaining steps at our offices in Reykjavik and Akureyri.

Mapping the value chain

The code of ethics that suppliers and service providers are required to follow, when working in cooperation with Landsvirkjun, are an intrinsic part of the Company's daily activities. In 2017, efforts will be made to create an improved overview of the social impact of suppliers. These include climate and fossil fuels.


Green Steps

Landsvirkjun participates in the Green Steps project organised by the Icelandic Environment Agency, which entails various actions designed to reduce waste of resources and render office work more environmentally friendly. There are four green steps, and the goal for 2016 is to complete the first green step, which is well under way, with the second step already in progress. See Landsvirkjun - fyrsta græna skrefið.pdf.


Implementation of green procurement measures

Landsvirkjun chooses to work with business partners and suppliers who show a commitment to responsible corporate governance. In 2015, we hope to take our first deliberate step in implementing green procurement measures in accordance with our commitment to environmental and social responsibility.

Landsvirkjun became a founding member of the Green Public Procurement program (VINN) in December, 2014. VINN is a forum for collaboration on green procurement led by the Ministry for the Environment and Natural Resources. Amendments will be made to Landsvirkjun’s procurement processes in 2015 with the aim of increasing the percentage of environmentally friendly goods purchased by the company. A status report will be completed in 2016 to describe the effects of these changes and will be based on the outcome for 2014.


Developing and implementing a policy on ethical business practices

An important component in increasing social responsibility is actively encouraging ethical business practices in all business partnerships. In 2014, we set the objective of developing and implementing a policy on ethical business practices.

The Policy has now been fully developed and will be implemented in working procedures connected to all Landsvirkjun’s business partnerships.

Policy on ethical business practices (PDF)

Implementing a code of conduct for suppliers

In 2014, a project team was appointed within Landsvirkjun with the objective of developing a code of conduct for suppliers built on the Code of Conduct for Landsvirkjun employees and the guidelines outlined by the UN Global Compact with regard to human rights, labour, the environment and anti-corruption. These measures provide suppliers and service providers with clear guidelines on Landsvirkjun’s expectations with regard to responsible working procedures and Corporate Governance. These regulations are now ready and will be implemented in working procedures in connection with suppliers and service providers in the next few weeks and months.

Landsvirkjun's Code of Conduct for Suppliers (pdf)



Re-evaluating our policy on contractors and suppliers with a view to our new policy on corporate social responsibility

Work on the re-evaluation of the policy could not be fully completed this year. However, the group did begin work on the re-assessment of the policy with regard to service providers, suppliers, customers and other stakeholders. The group also discussed the scope of the policy, the methods utilised by other companies in implementing such a policy, performance criteria and the relevant standards and guidelines. This work will be ongoing in 2014.


We are committed to the sustainable utilisation of natural resources and we operate in accordance with approved, international procedures


The Carbon Disclosure Project (CDP)

Landsvirkjun signed the declaration "Caring for Climate" at the United Nations Climate Conference in Paris in December, 2015. Participation requires the Company to publish information on the Company's goals in combating climate change. Landsvirkjun submitted a report on its carbon emissions to the Carbon Disclosure Project (CDP) for the first time.

The CDP is an independent organisation, operating in the international arena. The objective of the project is to promote business sustainability by collecting information on carbon emissions. The project was established in 2000 and collects information from over 3000 companies around the world.

Landsvirkjun will submit a report to the CDP on carbon emissions in 2017 and follow up this work by reviewing recommendations on how the Company can further strengthen its work with regard to climate change.

Revised policy on energy exchange in transport

Landsvirkjun adopted a policy on energy exchange in transport in 2012 and a Transport Policy was approved in 2013. Both of these policies support the reduction of the impact of transport on the environment and atmosphere, by reducing the use of fossil fuels and by increasing energy exchange in transport.

Support for energy exchange has increased within Icelandic society and there has been increased dialogue on the matter. It therefore seems pertinent to revise these policies and to develop a proposal that targets newfound opportunities. Landsvirkjun will continue to endeavour to promote energy exchange in transport, both in its own activities and in cooperative projects.

Forestry in Skálmholtshraun

Skálmholtshraun in Flóa is owned by Landsvirkjun and preparation measures for forestation have been underway for some time. The project will alter the ‘land use’ in the area and changes to the General Plan will therefore be required for the project to go ahead. These changes involve the classification of the land for agricultural purposes. There is obviously a considerable amount of land that would be suitable for forestry.


Power development in harmony with the environment and society

Landsvirkjun places great emphasis on utilising the energy resources entrusted to it in a sustainable manner, guided by the principle of engaging in energy production in harmony with the environment and community. Through its clear environmental policy, detailed research and close monitoring of the environment the Company is determined to minimise the negative impact of its activities.

Landsvirkjun's environmental policy and strategy

  • Improved utilisation of resources
  • Carbon neutral operation
  • Operation in harmony with the environment and with minimum visual impact
  • Dialogue with stakeholders
  • Operation without environmental incidents

Carbon neutral operation

At the United Nations Climate Change Conference in Paris in December 2015 Landsvirkjun signed the declaration on "Caring for Climate". With its participation in the project Landsvirkjun undertook to report on its progress regarding the goals set by the Company in the campaign against climate change.

Subsequently, Landsvirkjun registered its intention to reduce its carbon footprint with NAZCA (Non-State Actor Zone for Climate Action), an international forum where companies, cities, sub-national regions, NGOs and investors are given an opportunity to register their goals in combating climate change.

Landsvirkjun's NAZCA goals are:
• To become a carbon neutral company no later than 2030
• To invest in renewable energy production, geothermal energy, hydro energy and wind energy
• To take steps so that a quarter of the Company's fleet of vehicles is powered by electricity in 2020
• To take various actions to reduce the impact of climate change by initiating a nation-wide energy efficiency programme

In 2016 Landsvirkjun will for the first time submit its report on carbon emissions to the Carbon Disclosure Project (CDP). CDP is an independent international organisation. The objective of the Project is to contribute to sustainability in business operations by collecting information from companies regarding the release of carbon into the atmosphere. The Project was started in 2000 and today CDP collects information from over 3,000 companies around the world.


Assessment on the production of fuels from surplus energy and carbon dioxide from geothermal power plants

In 2014 we assessed the possibility of increasing efficiency from geothermal energy. The assessment revealed a number of exciting opportunities in utilising excess energy and carbon dioxide emissions to produce alternative fuels. However, many questions remain unanswered and this year we are going to explore business and technical issues related to this type of production. 

Land reclamation around Þeistareykir

Landsvirkjun is committed to reducing environmental impacts of all stages of new power projects, namely preparation, construction and finalizing of projects. This will be a key objective in the construction of the Þeistareykir Geothermal Power Station which is situated in an unbuilt area in North Iceland.

Throughout the entire power project planning process, from the design phase to the construction phase, Land- shaping and recycling of materials are pursued. An emphasis is also placed on cleaning up the area as soon as possible, after construction has been completed, to ensure that visual impacts are as short lived as possible and that the area retains as many of its original features as possible.

Every effort is also made to reclaim grazing land lost as a result of power station projects. A cooperative effort was set up with landowners on land reclamation projects in 2014 as part of the drive to achieve this objective. Approximately 40 hectares of land was sown in the Þingeyjarsveit area and over thirty thousand plants were planted in Norðurþing.

A project report on the action taken in 2014 and the action plan for 2015 can be accessed via the Þeistareykir website. Plans include the planting of forty thousand plants and the re-vegetation of 187 hectares of land.



Reducing emissions from employee transportation and encouraging others to do the same

An important step was taken in 2014 with regard to more environmentally friendly transportation. We set a transportation policy where an emphasis is placed on less fossil fuel consumption and active participation in developing an energy exchange plan for Iceland.

The option of switching to electric vehicles is always considered when renewing any part of the vehicle fleet at Landsvirkjun. In early 2015 there are four electric vehicles in Landsvirkjun’s fleet as well as two hybrids.

In 2015, we will continue to encourage projects that decrease emissions of carbon dioxide in employee transportation. We will also assess ways to encourage other companies and individuals to take an active part in energy exchange.


Better use of resources - analysis of the diverse nature and uses of geothermal energy and the increased utilisation of hydropower

The sustainable utilisation of natural resources is a crucial factor in Landsvirkjun’s operations and the Company is required to utilise the resources it has been entrusted with in the most efficient manner achievable. We are continuously assessing and developing the technical resources available to us and exploring possible actions to utilise these resources in a more efficient manner.

In 2014, a specific analysis was conducted to determine the potential of utilising the geothermal resource for other purposes than that of electricity generation. The diverse utilisation of geothermal energy involves the utilisation of water, steam and gases from power stations for various purposes, within areas such as the industrial sector, greenhouse cultivation and tourism. We also assessed the possibility of further utilising the electricity we are able to generate for the electricity system during good water years.

The analysis revealed a variety of exciting opportunities in the diverse utilisation of the geothermal resource within Landsvirkjun’s operational areas in the north-east, particularly in the fields of cultivation, further processing in the food industry and fuel production from carbon dioxide and excess energy.

Landsvirkjun will continue to work towards ‘diverse utilisation’ and has subsequently appointed a project manager who has been given the task of creating a foundation for the diverse utilisation of geothermal energy, in Landsvirkjun’s operations, in the north-east of Iceland.

A comprehensive plan of action on climate change

Landsvirkjun has long-since monitored greenhouse gas emissions (GHG) and carbon sequestration from its operations. Landsvirkjun has kept carbon accounts since 2007 which can be accessed in Landsvirkjun’s Annual Report. However, the Company has not yet developed a long-term comprehensive plan of action. The formulation of such a plan is an essential component in accepting environmental and social responsibility. It is our objective to develop such a plan in 2014.

Setting a transport policy and processing energy exchange in transport matters

Landsvirkjun has for years utilised and implemented a variety of measures to reduce the environmental impact of the Company’s operations.

In 2014, a specific emphasis was placed on energy exchange in transportation and subsequently the Company developed a transportation strategy:

Landsvirkjun is committed to reducing the impact of transportation on the environment and the atmosphere by:

  • Reducing the use of fossil fuels in Company owned vehicles
  • Compensating for the inevitable release of carbon via re-vegetation
  • Actively participating in the Energy Exchange Plan for  Iceland

In early 2014, two diesel cars (in use at the Fljotsdalur and Sogid power stations) were replaced with electric cars. The cars, which are of the type Nissan Leaf, are performing well and the Company will continue to replace older fossil fuel cars with electric vehicles wherever possible.

In September 2014, Landsvirkjun took part in organising a conference in Reykjavik on energy exchange in transportation. 


Improving communication and consultation at all stages of preparation, development and operations pertaining to the environment and ensuring that our practices meet the requirements of good practice, according to the HSAP Protocol and the key sustainability indicators outlined by the GRI

In 2013, the International Hydropower Association conducted an assessment of the Bland Hydropower Station utilising the HSAP (Hydropower Sustainability Assessment Protocol). The Protocol places particular emphasis on environmental and social aspects. The report showed that Landsvirkjun fulfils the highest standards of practice in 14 of the 17 topics. Landsvirkjun was awarded the second highest rating for the three other topics. Topics evaluated during the assessment included responsible governance, environmental and social issues management, public safety and labour and working conditions. The report is available here.

Increasing expertise on the environmental impact of geothermal energy utilisation to further decrease the effects of geothermal power stations on the environment

Monitoring and environmental surveillance was increased on hydrogen sulphide levels, the climate and on air quality. Measurements on the concentration of hydrogen sulphide in the air are now accessible in ‘real time’ on the Landsvirkjun website and can be seen here:

Last year, Landsvirkjun took part in a number of research projects in order to further their expertise on the environmental impact of geothermal utilisation. Amongst these projects were the following:

  • Cooperation with ÍSOR on a report on sustainable energy production at Bjarnaflag.
  • A research project at Krafla initiated to map the “arteries” of the geothermal system. The results could be utilised to improve the energy utilisation of the system.
  • Research on the impact of geothermal utilisation on the warm groundwater streams flowing into Mývatn.
  • Research on the effective utilisation of the energy stream of water, steam and gas for further energy production or other uses. There are indications that it would be possible to produce pure carbon dioxide from geothermal gasses to be used for industrial purposes; thus transforming pollutants into raw material.
  • Research into methods for lowering the concentration of hydrogen sulphide from geothermal power stations. Part of this drive is the collaboration with SulFix; a collaboration of Icelandic energy companies working together in order to better comprehend the re-injection of hydrogen sulphide into the geothermal reservoir and how to bind it as a solid material.
  • Participation in a number of research projects in connection with the utilisation of geothermal energy including the Deep Roots of Geothermal Systems Project which focusses on increasing expertise on geothermal systems and IMAGE: Integrated Methods for Advanced Geothermal Exploration, a European project which aims to improve research methods used to map geothermal systems.
  • Monitoring the chemical composition of borehole fluid, gasses and steam from boreholes and the geothermal system.  

Reducing the release of greenhouse gasses (GHG) and carbon neutralisation via larger scale carbon capturing measures than those in current use

Statistics on carbon emissions for 2013 are not yet available and we can therefore not assume that the target has been achieved in full. However, an update will be available as soon as the data becomes available. Important steps were taken to reduce or neutralise GHG emissions, including soil conservation and reforestation. An agreement was reached with the Iceland Forest Service and Soil Conservation Agency on two new areas of carbon sequestration. It is estimated that carbon binding will reach 2.5 T carbon / ha per year within a decade.

An agreement was reached with Kolvið on the neutralisation of all carbon emissions as a result of Landsvirkjun’s use of petroleum and diesel for transportation purposes, the international and national air travel of employees and finally the disposal of approx. one thousand tonnes of waste.

Research has also been conducted on the extent of natural emissions from geothermal areas.


We place an emphasis on building a strong collaborative alliance with society by promoting transparency in our working methods, encouraging knowledge dissemination and ensuring that society benefits from Landsvirkjun’s operations


Communication and consultation

Extensive work was initiated in 2015 within Landsvirkjun with the aim of improving the relationship with stakeholders, increasing mutual understanding and consensus on important aspects of projects and the activities of the Company. This work will continue in 2017. Interdisciplinary consultative groups will be established within the Company and further efforts will be made to promote dialogue and consultation with stakeholders.

Sustainability project in Northeast Iceland

The sustainability project in Northeast Iceland is a collaborative project with stakeholders within the area affected by the construction of the Þeistareykir Geothermal Power Station and industrial development at Bakka. The Þingeyinga Knowledge Network is responsible for project management. Indicators with respect to sustainability were developed in broad consultation in order to monitor developments in the area.

Work on the preparation of a website will take place in 2017. Work on data collection for 2015 and 2016 is expected to be completed by the end of the year and the data will be published on the project's website.


Landsvirkjun’s role is to consistently endeavour to maximise the potential yield and value of the natural resources it has been entrusted with, in a sustainable, responsible and efficient manner. One of the ways to support this role is to pay dividends from the Company's activities. Landsvirkjun pays dividends annually to its owner, the Icelandic state. The amount of dividend payments varies between years and is determined by Landsvirkjun’s Board of Directors.


Engagement with stakeholders

The Company is engaged in a diverse range of activities which call for open dialogue with its owner, customers and stakeholders around the country. Landsvirkjun endeavours to work in accordance with the ideology of sustainable development, e.g. through active dialogue and participation in joint projects with stakeholders.

Dialogue is important to achieve a mutual understanding of the emphases and tasks of the Company and the expectations of stakeholders regarding its business activities. The opinions of stakeholders, as revealed in the course of reviews, can help the Company to identify new opportunities and changes in expectations. In 2016 Landsvirkjun intends to put in place a communications plan for targeted use regarding all power stations in operation and development options which are in progress or in preparation.

Role in creating jobs

Landsvirkjun has always emphasised revegetation and reforestation in Iceland. Soon after the Company's first power plant, the Búrfell Power Plant, began producing electricity in 1969 young people were recruited for summer work on planting and seeding.

"Many hands lighten the load" has been an ongoing project of Landsvirkjun for decades. The project invites young people aged 16 to 20 to apply for summer work, and non-governmental organisations can request their work contribution in the interests of the environment.

This has been an important contribution to employment opportunities for students, who at the same time are given an opportunity to get acquainted with Landsvirkjun's work. Landsvirkjun also hires a number of university students for summer work on projects of various kinds.

Preparations will begin in 2016 for recruitment of summer staff in 2017 with a view to making the jobs on offer more attractive to a wider group of young people. The Company will endeavour to reflect the diverse composition of our society.

Dividends to owners

The role of Landsvirkjun is to maximise revenues from the energy resources entrusted to the Company, guided by sustainable use, value creation and efficiency. One of the ways to perform this role is to pay dividends on the Company's financial results. Landsvirkjun annually pays dividends to its owner, the State of Iceland. The amount of the dividend payments varies from year to year.


Stakeholder dialogue in Landsvirkjun’s 50th anniversary year: more open meetings

In 2015, we celebrate the 50th anniversary of Landsvirkjun. As a state owned company we need to engage in effective stakeholder dialogue, to supports transparency in our operations and increase a discussion on matters related to Landsvirkjun’s operations.

In 2014, our target was to hold at least five open meetings with stakeholders. We held six successful meetings and engaged in effective communication with stakeholders. This year we hope to do even better by holding even more meetings. The objective of these meetings will be to provide more information on our operations to the public, listen to public opinion, to discuss the future and to engage in communication with our owners: the Icelandic nation.

Development of sustainability indicators in North Iceland

At Landsvirkjun we strive to ensure successful cooperation with society, place an emphasis on the sustainable utilisation of natural resources and on minimising the environmental impact of our operations. This year we will develop sustainability indicators in cooperation with municipalities and other stakeholders in North Iceland in relation to the new power project at Þeistareykir.

The objective of the development of sustainability indicators is to monitor the development in the area in relation to the new power project. Cooperation will be initiated in the area to address hopes and concerns pertaining to the planned construction and energy utilisation and to monitor the development of societal, environmental and economic aspects in the coming years.

Dividends paid to owners

At Landsvirkjun, our role is to consistently endeavour to maximise the potential yield and value of the natural resources we have been entrusted with, in a sustainable, responsible and efficient manner. One of the ways to fulfil this role is by paying dividends. Landsvirkjun pays annual dividends to its owner, the Icelandic state. The amount differs between years: 


At least five open meetings with stakeholders in 2014

We have created a policy that promotes open communication with stakeholders and are therefore active in sharing information on the Company’s operations, via various resources. These resources include press releases and publishing our Annual Report and Environmental Report online. Open meetings with stakeholders are a key factor in implementing our policy on communication and provide an opportunity for stakeholders to familiarise themselves with Landvirkjun’s operations. We hope that these meetings will contribute to increasing our awareness of the concerns held by stakeholders and their expectations of the Company and its operations.

In 2014, we exceeded our initial objective of holding at least five open meetings during the year. Six open meetings were held by Landsvirkjun including two meetings in Reykjavík and four meetings in rural areas; both at existing power stations and at potential power project sites.

Dividends paid to owners

At Landsvirkjun, our role is to consistently endeavour to maximise the potential yield and value of the natural resources we have been entrusted with, in a sustainable, responsible and efficient manner. One of the ways to fulfil this role is by paying dividends. Landsvirkjun pays annual dividends to its owner, the Icelandic state. The amount differs between years.



Shaping communication strategies with stakeholders in the Northeast

A communication plan for stakeholders of the proposed power plants in the Northeast was formulated. Communication strategies for the area include two proposed project sites: Bjarnarflag and Þeistareykir. The Communication Plan is a development project that outlines purpose, guiding principles, communication networks and objectives for 2014. The purpose of the communication plan is to prevent any breakdown in communication between Landsvirkjun and its stakeholders.


We operate in accordance with a responsible policy on health and safety and employee issues designed to ensure the wellbeing, safety and equality of our employees


Proportion of women in management over 30%

Landsvirkjun's policy is to ensure full gender equality between the sexes and that all employees enjoy equal opportunities, regardless of gender. The Company has established an Equality Policy and Equal Rights Committee. An Equal Rights Action Plan is developed every two years with defined objectives. The objective of increasing the proportion of female managers to 30% in 2016 was unfortunately not achieved. External consultants will be asked to advise and support the Company in achieving this target in 2017.

Assessment on facilities and access

Landsvirkjun's management is aware of the need to support diversity. One of the objectives of 2017 in the field of human resource management is to assess accessibility for disabled individuals and to assess the facilities within the workplace in a broader context at the Company's headquarters at Háaleitisbraut 68.

Zero accident rate

Landsvirkjun‘s Occupational Health and Safety policy clearly outlines the Company‘s zero accident policy objectives. This policy applies to both Landsvirkjun’s employees and all external contractors.


Proportion of women in management over 30%

Landsvirkjun has an Equal Rights Committee Jafnréttisstefna Landsvirkjunar which is responsible for the Equal Rights Action Plan and monitoring the achievement of its goals. The Plan includes actions which are designed to promote a more equal footing for all groups within the Company.

Landsvirkjun's management is working on targeted actions to increase the representation of women in management positions in the Company and balancing the gender ratio. In 2016 the objective is to improve the gender ratio in positions of management and authority in the Company by increasing the proportion of women from 24% to 30% This effort is based on an analysis of managerial positions in the Company.

Equal pay for equal work

Men and women who work for Landsvirkjun in the same jobs are paid equal wages and enjoy the same employment terms. To this end special care is taken to ensure that women and men are paid the same salaries for comparable work of equal value. The goal in 2016 is to bring the gender pay gap for similar work or work of similar value to within 1%. The results are verified by means of an Equal Pay Audit performed by the international company PwC , which provides a precise analysis of the wage structure by gender.

Annual accident rate at 0

Landsvirkjun seeks to be at the forefront in security, health and occupational safety. The Company's policy in this area calls for accident-free operations and well-being in the workplace.

The goal is for operations in 2016 to be accident-free.


A reassessment of equal opportunity policy and a new action plan on equal rights

In 2015, we intend to reassess our policy on equal opportunities with the goal of increasing gender equality within the Company. The goal is to complete a new equal rights policy and an action plan on equal rights to ensure a successful implementation of the policy.

A ‘zero’ annual accident rate

Employee safety is of key importance to Landsvirkjun. Our working methods and risk assessments are aimed at preventing accidents and we operate according to a zero-accident policy. We closely follow the performance of safety systems and register all incidents and accidents. 

H200 shows the number of absences due to accidents per 200,000 hours worked.

2014 2013 2012 2011 2010 2009 2008
0,3 0,7 0,0 0,4 1,4 1,1 0,4


Increasing the proportion of female managers at Landsvirkjun to 20% in 2014

In 2011, Landsvirkjun signed the UN Global Compact and UN Women. The objective of the compact is to promote equality and the advancement of both sexes in the workplace, labour market and in society. It is Landsvirkjun’s policy to ensure the equal treatment of male and female employees and that equal opportunities are enjoyed by all members of Landsvirkjun’s team, regardless of gender. In doing so, Landsvirkjun is following the letter of the law but also ensures that it utilises its human resources in the most effective manner. To this end, important action has been taken to reduce the gender pay gap which has been reduced from 12.0% to 1.6% over the past ten years. This effort was recognised in 2013 when Landsvirkjun was awarded the PWC Gold Standard. The Company also endeavours to address the issue of gender distribution within the various operational areas of the business. In 2014, it is our objective to increase the proportion of female managers at Landsvirkjun to 20%.

The graph shows gender ratio in Landsvirkjun’s operational areas in 2013.

Annual accident rate is 0

At Landsvirkjun, employee safety is of the utmost importance to us. Our working methods are designed to prevent accidents and we work according to a zero tolerance accident policy. We closely follow the accident rate and publish figures of accidents on a regular basis.

H200 shows the number of absences due to accidents per 200,000 hours worked.

0,7 0,0 0,4 1,4 1,1 0,4


Review of Human Resources Policy in view of the new role and values at Landsvirkjun

Major changes have been made to Landsvirkjun’s policy in recent years. The changing role and values of Landsvirkjun affect how human resources issues are executed. We set the objective of reviewing our staff policy with respect to these changes. This goal has been partially achieved and a draft of the policy has been completed. The policy has not been reviewed nor implemented but the project will be completed in early 2014.

Knowledge Sharing

We create value for the labour market and society by sharing our expertise and supporting innovation


Knowledge dissemination on climate change

Landsvirkjun wants to promote public awareness of the impact of climate change and Iceland's responsibility in a global context. This will be achieved via various modes of knowledge dissemination, such as open meetings, published content and communication and by encouraging an informed discussion on climate change.

Energy Research introduced to the public (ORKA)

Learning materials on energy issues will be developed to introduce energy research to the public and to address the sustainable utilisation of energy resources, focusing on innovation and technology and employment diversity within the energy sector. The project is a cooperative project of Landsvirkjun’s Energy Research Fund and the NaNO project at the University of Iceland.

Literacy, creativity and sustainability will be key focus areas. The topics relate to most ideas on sustainability and will be made accessible to students as well as the public on the NaNO website, free of charge.


Research and innovation

Landsvirkjun supports innovation in a number of ways. One of the projects that the Company participates in is the accelerator network Startup Energy Reykjavík (SER), which was launched in 2014. Through the accelerator network Landsvirkjun supports startup companies in the energy sector through direct investment, and also by other means, such as advice and guidance.

Landsvirkjun's Energy Research Fund annually supports students, research projects, organisations, business enterprises and individuals who are engaged in promoting environmental and energy research.

In order to make Landsvirkjun's contribution to research and innovation more visible an indicator will be devised in 2016 to show the Fund's range of activities and progress.

Development of sustainability index in northern Iceland

Landsvirkjun is currently engaged in building the Theistareykir Power Plant in north-east Iceland. The development in the area has been in preparation for years, and in the course of preparation Landsvirkjun launched a project known as the Sustainability Initiative in north-east Iceland.

The Sustainability Initiative is a communal project with the objective of monitoring trends in the community, the environment and the economy in the area from Vaðlaheiði in the West to the river Jökulsá á Fjöllum in the East. This is the area that will probably be most impacted by the development of the Þeistareykir Power Plant, the industrial complex at Bakki and the increased tourism in the county of Þingeyjarsýsla.
Work has been in progress on analysing the community's expectations and concerns. An attempt has been made to identify the factors that stakeholders feel a need to monitor concurrently with the developments and the changes that they may entail. These factors will form the basis of sustainability indicators to be monitored in order to observe trends and create a knowledge base of the social, environmental and economic conditions in the region. The indicators will be ready by 1 January 2017.


Opening a new energy exhibition at the Ljósafoss Hydropower Station

Landsvirkjun celebrates its 50 year anniversary in 2015 and will open a new anniversary exhibition at the Ljósafoss Hydropower Station called ‘Powering the Future’. The objective of the exhibition is to provide an educational experience for people of all ages about electricity, its characteristics and development opportunities in the future.

Encourage innovation within the energy industry by supporting seed stage business

One of Landsvirkjun’s key responsibilities with regard to social responsibility is knowledge dissemination and supporting innovation and new expertise within society. In 2014, Landsvirkjun supported the investment program Startup Energy Reykjavík which is a mentorship-driven seed stage investment program which strives to increase value creation for energy related companies. The venture was a success with six out of seven companies still operating approximately one year after the closure of the program and with an accumulated 120 million ISK in share capital. 

Landsvirkjun will continue its support for the initiative in 2015 and will utilise the same key performance indicators to evaluate success. These include the number of SER companies still operating at the end of the SER program and the likelihood of further investments in SER seed stage companies one year after the program closes.

Increasing public access to Landsvirkjun’s research

Almost four hundred research reports, completed for Landsvirkjun by various experts, have been published online through the search engine The objective for 2015 is to ensure that all reports published on the Company website will also be made available via the search engine as soon as they are released.


Promoting innovation by supporting innovative ventures in energy-related industries

Landsvirkjun is aware that a key area in contributing effectively to CSR is knowledge dissemination; sharing expertise effectively in order to facilitate new knowledge or value for society. In 2014, Landsvirkjun will support the business centre Startup Reykjavik Energy (SER), whose sole aim is to support innovative ventures in energy-related industries by providing selected business ideas in this area with investment opportunities and support. For more information see:

Performance indicators assessed by Landsvirkjun on completion of the project include:

  • The number of businesses (in SER) still in operation one year after the completion of the project
  • Further financial funding for SER businesses one year after the close of the business centre

Continuing to promote knowledge via the Energy Research Fund

The Landsvirkjun Energy Research fund has since 2008 sponsored students, university research projects, institutions, companies and individuals researching the fields of environmental and energy affairs. It is Landsvirkjun’s objective to ensure that the fund continues to support the foundation for new expertise in 2014. Landsvirkjun will allocate 52 million ISK to the fund in 2014.

Increasing public access to research

Every year Landsvirkjun’s employees, consultants and researchers execute a number of audits and reports for the Company. In 2013, an essential step was taken to share this information with the public when the Company connected with the electronic search engine In 2013, approx. 300 reports were made ​​available via this source. Landsvirkjun will continue to support public access to research in 2014 via this route. An update on the increased number of available reports will be released at year end.


Promoting cooperation with the university environment to support and encourage the development of expertise within the field of renewable energy.

Landsvirkjun signed three cooperation agreements with various academic institutions with this objective in mind.

In July, 2013 Landsvirkjun joined forces with, Reykjavik University and the University of Iceland to support and encourage the development of expertise within the field of renewable energy. Landsvirkjun has pledged 80 million to university education, over a five year period, to promote university education and research in geochemistry, electric power engineering and other academic disciplines within the universities.

In October, 2013 Landsvirkjun and the Institute of Economic Studies joined forces in an effort to support and encourage research within the field of business and economics, pertaining to energy generation, subsequently increasing public knowledge and awareness on the significance of these factors with regard to the economy. Landsvirkjun will contribute an overall total of 24 million ISK to the Institute of Economic Studies over a three year period.