Norðurál is one of Iceland’s largest industrial companies, one of the country’s biggest employers, and among the largest purchasers of Icelandic electricity. The core of our social responsibility is to create long-term value in a sustainable and responsible way, with positive impacts on society.

At Norðurál, we emphasize respect for human rights, society, and the environment. We continuously work to minimize the environmental footprint of our operations and use energy and raw materials efficiently. The safety, health, and well-being of our employees are a top priority. We emphasize equal opportunities for career development, pay, and benefits, regardless of gender, sexual orientation, religion, or origin. We seek to positively influence our entire value chain and ensure that procurement is carried out with integrity and in line with our company values.

A robust risk management system has been implemented at Norðurál, classifying risk into four categories: business risk, financial risk, operational risk, and environmental risk.

Norðurál is significantly exposed to changes in aluminum prices, energy prices and availability, labor costs, and the cost of key raw materials such as alumina and anodes. Wages, taxes, and various operating expenses are denominated in ISK, while the company’s revenues are primarily in USD. Adverse changes in these factors may have a material impact on the company’s operations.

Our main opportunities lie in the low carbon footprint of Icelandic aluminum and the country’s strategic location within a market area with strong demand for aluminum.
 

Key Sustainability Priorities

Production in Harmony with the Environment

We continuously work to minimize environmental impacts and ensure the responsible use of energy and raw materials. Norðurál promotes environmental awareness and employee participation in improvements. The company complies with the requirements of its operating license, as well as applicable environmental laws and regulations.

Climate Action Plan

Norðurál has set ambitious targets to reduce greenhouse gas emissions outside the EU Emissions Trading System by at least 40% by 2030 compared to 2015 levels. In 2023, emissions had been reduced by 45%, meaning that the original goal has already been met. We now aim for a 55% reduction by 2030.

Comprehensive Environmental Monitoring

Environmental monitoring covers parameters in air, seawater, freshwater, livestock, and vegetation in and around Hvalfjörður to ensure that Norðurál’s operations have no negative effects on the environment. Monitoring is carried out by independent third parties. In 2023, around 450 samples were taken from 171 monitoring sites.

Less Waste and Better Resource Utilization

Norðurál maintains a “green accounting system,” a detailed record of all materials entering and leaving the smelter. Our goal is to minimize material use wherever possible and to provide transparent reporting on the fate of all materials.

People First

Norðurál conducts its operations and business with respect for human rights. We emphasize equal rights for all employees regarding career development, pay, and benefits, regardless of gender, sexual orientation, religion, or origin. We are committed to continuous improvement and comply with all laws and requirements on human rights and equality.

Active Employee Participation in Prevention and Improvements

Safety and health are a top priority. Employees are trained to understand risks and safe work practices, and no task should ever be performed under unsafe conditions. We encourage active employee participation in preventive measures and improvement initiatives. Norðurál complies with all occupational health and safety laws and regulations.

Constructive Community Engagement

We are part of a wider community that includes our families, neighbors, and the surrounding environment. We are proud of our community and want the community to be proud of us.

Responsible Business Practices

As part of our social responsibility, we share our employees’ knowledge with academia, as well as the technology and innovation sectors. By fostering strong collaboration, Norðurál can contribute to greater operational efficiency and potentially further reduce greenhouse gas emissions.

Responsible Procurement

Norðurál ensures that all procurement is carried out with integrity, responsibility, and cost efficiency. We take quality, environmental, and health considerations into account in all purchasing decisions. Norðurál is committed to continuous improvement and complies with all laws and regulations that apply to procurement.

Continuous Improvement

There is always room for improvement in every area. We never stop looking for ways to achieve better results. Continuous improvement is a cornerstone of Norðurál’s management systems, with projects — large and small — carried out every day to make operations more efficient, safer, more environmentally friendly, and to reduce waste.

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Norðurál Actively Contributes to Four United Nations Sustainable Development Goals

5 – Gender Equality

Norðurál’s Human Rights and Equality Policy, Goals, Equal Pay Certification, and Equality Action Plan contribute to achieving UN Sustainable Development Goal 5: to achieve gender equality and empower all women and girls.

8 – Decent Work and Economic Growth

Our Safety and Health Policy and Goals, along with our Human Rights and Equality Policy and Goals, contribute to sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all.

12 – Responsible Consumption and Production

Our Quality Policy and Goals, Environmental Policy and Goals, Procurement Policy and Goals, Operating License, and Environmental Monitoring aim to ensure sustainable consumption and production patterns.

13 – Climate Action

Our Environmental Policy and Goals, Climate Action Plan, Procurement Policy and Goals, and participation in research projects are key measures contributing to SDG 13: taking urgent action to combat climate change and its impacts.