Norðurál is one of Iceland’s largest industrial companies, one of the largest workplaces in the country, and one of the largest buyers of Icelandic electricity. Creating long-term value in a sustainable and responsible manner, for the long term and with a positive impact on society, is at the heart of our corporate social responsibility.

At Norðurál, we strive to respect the environment, our community, and human rights. Continuous efforts are undertaken to keep the environmental impact of activities to a minimum and to use energy and raw materials efficiently. The safety, health, and wellbeing of employees is a top priority. We promote the equal right of staff to career advancement, remuneration, and rights, irrespective of their sex, sexual orientation, religion, or origin. Further, we strive to undertake our procurement with integrity, in line with the company’s values.

Norðurál has introduced strong risk management within the company, where the company’s risks are divided into four categories: business risk, financial risk, operational risk, and environmental risk.

Our operations are affected by fluctuations in the market value of aluminum, energy prices and supply, payroll expenditure, and procurement costs of essential materials such as alumina and anodes. Salaries, taxes, and other operational expenses are in ISK, while the company’s revenue is mostly in USD. Adverse changes to any of these factors could have considerable impacts on the company’s operations.

The main opportunities lie in the small carbon footprint of Icelandic aluminum and the country’s geographical location within a market area where demand for aluminum is high.

 

Main sustainability focuses

Production in harmony with the environment

We constantly strive towards minimizing effects on the environment and the responsible usage of energy and raw materials. Norðurál contributes to increased environmental awareness and the involvement of the company‘s employees in improvements. Norðurál fulfills the requirements for operating licenses and complies with environmental laws and regulations.

Climate action plan

Norðurál has set ambitious targets for reducing greenhouse gas emissions from sources outside the EU Emissions Trading System by at least 40% by 2030, compared to 2015. In 2023, the reduction in emissions amounted to 45%, and the original goal has therefore already been achieved. We are aiming for even more success and now aim for a 55% reduction by 2030.

Targeted environmental monitoring

Environmental monitoring includes parameters for air, sea, fresh water, farm animals, and vegetation in and around Hvalfjörður. This is done to ensure that the operations of Norðurál do not have a negative impact on the environment. Environmental monitoring is conducted by independent entities. In 2023, around 450 samples were taken from 171 sampling points.

Less waste and better utilization of resources

Norðurál uses the accounting system through the Green Steps Program (Græn skref) to keep detailed records of all materials going in and out of the smelter. Our goal is to reduce all raw material use to the greatest extent possible and to report in detail how we dispose of all substances.

People first

Norðurál conducts its activities and business with respect for human rights. Norðurál is responsible for its activities and business with respect for human rights. Norðurál aims for continuous improvements and complies with laws and other stipulations on human rights and equality.

Active participation of staff in preventive measures and improvements

Norðurál prioritizes safety and health. We emphasize that all employees are aware of the importance of risk analysis and safe conduct in the workplace and always respect the principle that no task should be performed in unsafe circumstances. Active participation by employees in accident prevention and in making improvements is emphasized. Norðurál adheres to all laws and regulations concerning safety and health.

Constructive communication

Our company is part of a larger community that includes our families, our neighbors, and the local environment. We are proud of our community, and we hope the community will be proud of us.

Responsible business practices

Norðurál considers sharing the knowledge of staff with the academic community, as well as the technology and innovation industries, to be part of its social responsibility. By contributing to dynamic cooperation in this field, Norðurál can promote more efficient operations and potentially reduce greenhouse gas emissions.

Responsible procurement

Norðurál wants all procurement to be conducted with integrity, responsibility, and efficiency in mind. We take quality and environmental and health considerations into account when contracting suppliers and continue to make improvements in these regards. The company complies with all applicable laws and regulations on procurement.

Continuous improvement

It is our belief that there is always room for improvement. Never be complacent. Instead, seek ways for even greater achievements. Continuous improvement is the guiding principle in Norðurál’s management systems, and improvement projects, large and small, are undertaken every day, with the aim to make our operations more efficient, safer, more environmentally friendly and to reduce waste.

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Norðurál focuses systematically on four ofthe United Nations Sustainable Development Goals:

5 – Gender equality

Norðurál’s equal pay certification, our policy and objectives on equality and human rights, Equal Pay Certificate and our equality plan all support Global Goal 5: achieving gender equality and empowering all women and girls.

8 – Decent work and economic growth

Our health and safety policy and objectives, as well as our policy and objectives on human rights and equality, help us promote sustained, inclusive, and sustainable economic growth; full and productive employment; and decent work for all.

12 – Responsible consumption and production

The company’s quality policy and objectives, environmental policy and objectives, procurement policy and objectives, operating license, and environmental monitoring guide us in ensuring sustainable consumption and production patterns.

13 – Climate action

Norðurál’s environmental policy and objectives, climate action plan, procurement policy and objectives, and participation in research and innovation projects are the company’s key actions supporting Global Goal 13: urgent action to combat climate change and its impacts.