Board of Directors
Landsvirkjun is the largest energy company in Iceland and is owned by the Icelandic state. The Board is appointed by the Minister of Finance and Economic Affairs, on an annual basis, and is responsible for the finances and the operation of the Company.
Landsvirkjun’s Board of Directors was re-appointed on the 10th of April 2018. Jónas Þór Guðmundsson was re-appointed as the Chairman of the Board and Álfheiður Ingadóttir was appointed as the Vice Chairman of the Board.
The Executive Board of Directors
Landsvirkjun’s Board of Directors appoints the CEO. The Board and the CEO are responsible for the operation of the Company. The Deputy CEO oversees the joint affairs of the Company, as well as directing policy development and ensuring the quality of corporate governance. There are currently five directors at Landsvirkjun.
Hordur Arnarson completed his electrical engineering studies at the University of Iceland in 1986 and went on to obtain a doctorate from the Technical University of Denmark, in Copenhagen four years later, in 1990. Hordur began working for the food processing developer Marel in 1985 and become CEO in 1999, a position he held for ten years. He was then appointed Managing Director at the Sjóvá insurance company, leading the restructure of the organisation.
To oversee the Company’s joint matters of concern and policy formulation, as well as to ensure professional management practices. Support divisions handling Landsvirkjun’s joint matters are located in the Corporate Office.
To ensure that electricity generation and delivery is secure and efficient and fulfils the terms of the agreements signed with Landsvirkjun’s customers.
Marketing & Business Development Division
To maximise Landsvirkjun’s long-term profit potential, through the innovative and effective promotion and sale of products and services, within the national and international energy sector.
Research & Development Division
To manage the preparation of new power projects and to conduct research on the existing power systems. We ensure the efficient implementation of new power projects, and to increase the flexibility of energy production options and support innovation in energy production with a long-term view of future energy supplies.
Project Planning & Construction Division
To oversee Landsvirkjun’s power station projects from the preparation stage to their completion. We monitor the costs and safeguard the quality and progress of the various projects, keeping them in accordance with the expectations, plans and needs outlined by the company.
To create a foundation for efficient operations and to promote maximum results in all units of the Landsvirkjun Group.
Equality in action
The UN‘s 5th Sustainable Development Goal aims to achieve gender equality worldwide. We started the year off by setting specific gender equality objectives and indicators, based on a gender equality analysis and the results of an employee think tank in 2017. We introduced a three-year equality action plan in March of this year, outlining the implementation process for various improvement projects designed to bring the Company closer to the consolidation phase of gender mainstreaming.
The Policy is built on five pillars designed to fulfil Landsvirkjun’s role:
to maximise the potential yield and value
of the natural resources it has been entrusted
with in a sustainable, responsible and efficient manner
A new human resources and equality policy
The Icelandic government recently amended the Gender Equality Act and equal pay certification is now obligatory. We changed the name of our human resources policy to ‘the Human Resources and Equality Policy’ after reviewing and updating it as part of the preparation process for certification. The name now reflects the importance of ensuring gender equality in all company operations.
We also launched a new response plan on sexual harassment and violence within the workplace and introduced it to our employees at a staff meeting. We also reviewed our bullying response policy.
Our social responsibility policy remains unchanged from last year
Social responsibility policies
Social responsibility is about creating value for our owners, respecting the environment and natural resources, knowledge dissemination and positively affecting society.
Our Social Responsibility Policy is enforced by setting objectives and by focusing on the following aspects in company operations:
- Landsvirkjun operates in accordance with responsible corporate governance standards.
- Landsvirkjun is committed to having a positive effect on its value chain.
- Landsvirkjun is committed to being at the forefront of environmental matters.
- Landsvirkjun endeavours to work in consensus with society.
- Landsvirkjun places an emphasis on leading the way in health and safety, as well as in HR matters.
- Landsvirkjun shares its expertise to support innovation and to help the development of the economy and society.
Social responsibility policy development
Landsvirkjun's senior management decided that the issue of social responsibility would be one of the main focus areas in 2019. Gender equality issues and workplace culture will remain a priority. The broad co-operation and active participation of the Company's employees is seen as a key factor in strengthening social responsibility standards.
Preparation for the GRI Standard
We began preparations on the implementation of the international Global Reporting Initiative standard (GRI), an effective methodology or standard for measuring corporate social responsibility performance. The aim of the standard is to improve our CSI reports and to support us in setting objectives and defining key focus areas.
Consultation meeting with employees
A consultation meeting was held at the end of October to discuss various issues including the introduction of the GRI standard on social responsibility. The standard supports all work procedures pertaining to the issue, such as objective setting, project definition and annual reporting. Employees and managers discussed potential key topics in CSR with regard to economic, environmental and social issues. The GRI indicators were reviewed, discussed in groups and ranked by importance. This work is part of a larger social responsibility analysis and will affect Landsvirkjun’s future CSR policy.
Ongoing support for the UN Global Compact
Landsvirkjun signed the UN Global Compact in November 2013. Landsvirkjun has committed to implementing the ten principles outlined by the UN in the areas of human rights, labour, the environment and anti-corruption. The progress of Landsvirkjun’s CSR objectives is measured and reported in our Annual Report and discussed in detail in the UN Global Compact Communication on Progress, submitted by Landsvirkjun every year.
Landsvirkjun is also an active member of the Nordic UN Global Compact network. Annual meetings are held by the Nordic countries to share their experience of various projects in CSR.
Our environmental policy remains unchanged from last year
Landsvirkjun’s operations have an inevitable impact on the environment and the Company has therefore developed a clear environmental policy. Landsvirkjun’s Environmental Policy is as follows:
Landsvirkjun is at the forefront of environmental issues and supports sustainable development within society. The Company is committed to acquiring knowledge on the environmental impact of its operations and to reducing any impact.
The Policy includes five policy targets which can be seen in the table below.
Landsvirkjun has developed a management system based on years of experience and knowledge and effective work practices. The Management System supports the Company in fulfilling its obligations towards its clients, employees and other stakeholders, as well as the Company’s intentions with regard to developing company policy, based on the values of sustainable development. The Management System provides information on what we do and how we work. An emphasis is placed on integrating management and working procedures, therefore ensuring the reliability of operations, with efficiency and safety as guiding principles.
Landsvirkjun’s Management System is certified according to international standards for quality management, environmental management and safety management.
Landsvirkjun‘s electricity generation is certified by the German Certification Body TÜV SÜD as 100% renewable energy. This is testimony to Landsvirkjun‘s commitment to the development of renewable energy sources and confirmation that Landsvirkjun fulfills the most stringent requirements in production.