Ever since Norðurál was founded, we have worked continuously to minimize the environmental impact of our operations, using energy and raw materials in the best ways possible. These principles — along with the health, safety, and well-being of our employees — are what Norðurál represents, past, present, and future.
Community, Environment and Staff
Norðurál CSR Report 2022
Challenges and responsabilities
This year marks the 25th anniversary of Norðurál’s operations at the Grundartangi smelter. Since its establishment, Norðurál has grown steadily to become one of Iceland’s largest industrial companies, amongst its largest energy consumers, and amongst its largest workplaces. With such achievements come great responsibilities.
Our primary aim is to produce aluminum, and one of our main objectives is to do so in harmony with the environment. To this end, we have adopted an ambitious climate action plan that applies both to production itself and to the broader environmental impacts that come with running a sizeable company. We were honored and grateful to have this acknowledged when we were named Iceland’s 2022 Environmental Company of the Year. Along with the company’s successes in its environmental and climate-related efforts, we are proud of the recognition this award confers.
It is striking to note that if all the world’s smelters produced aluminum the way Norðurál does, global CO₂ emissions would decrease by 550 million tons each year. By comparison, Iceland’s annual emissions total 4.5 million tons.
But we can still do more. Our climate actions are nowhere near complete, and we know we must carry our fair share of the burden. We therefore aim for carbon neutrality in our operations – a goal we believe is attainable. At the heart of our social responsibility lies this very goal: value creation in a sustainable, responsible manner and with a positive impact on society. To achieve this, we actively pursue research and development projects seeking to capture, sequester, or harness the CO₂ released through our aluminum production. A number of these projects are underway, and many of them hinge upon the knowledge and ingenuity of our experts at Norðurál. We have high hopes for these endeavors.
Ever since Norðurál was founded, we have worked continuously to minimize the environmental impact of our operations, using energy and raw materials in the best ways possible. These principles — along with the health, safety, and well-being of our employees — are what Norðurál represents, past, present, and future.
Gunnar Guðlaugsson
Environment
Norðurál has been successful in our efforts to limit greenhouse gas emissions, reduce waste, and improve our use of raw materials. As a result of efficient production methods and careful monitoring, emissions per ton from our aluminum are amongst the lowest in the world. We constantly seek ways to reduce other operational emissions, guided by a detailed action plan and clear goals.
Carbon neutrality 2040
Norðurál’s aluminum products have one of the lowest carbon footprints in the world. From the extraction of raw materials to delivery of consumer products, emissions per ton are under a quarter of the global average for primary aluminum production. We aspire to be the first smelter in the world to produce carbon-neutral aluminum.
Climate Action Plan
While we have set ambitious targets for aluminum production itself, we are equally determined to minimize greenhouse gas emissions that do not fall under EU ETS regulation. This is in line with Iceland’s commitment to the Paris Agreement, which stipulates an emissions reduction of at least 40% of 2015 levels by the year 2030. Positive results have already been achieved. Emissions of greenhouse gasses within the scope of our climate action plan have decreased by 35% and the amount of non-recyclable waste by 70%.
Environmental Monitoring
Environmental monitoring in Hvalfjörður near the Grundartangi industrial site considers around 100 indicators. This monitoring is undertaken by different independent entities to ensure the company’s operations do not adversely impact our local environment.
During the year, monitoring was conducted to assess the condition of air quality, groundwater, seawater by coastal flood pits, vegetation, and livestock (sheep and horses). In 2022, around 400 samples were collected from approximately 120 sites.
Economy
Norðurál’s exports amounted to 141 billion ISK in 2022. Of this revenue, 64.5 billion ISK was paid to Icelandic parties in the form of public levies, salaries, and procurement from domestic suppliers and service providers. Norðurál‘s profit in 2022 was 29.7 million ISK and the company‘s tax footprint was 5 billion ISK.
Key Figures
Norðurál’s aluminum production in 2022 was 306,267 tons, a decrease of around 9,000 tons from the previous year. This decrease is mainly a result of the energy cut in the first quarter of the year, when electricity supplied to major consumers was reduced due to a national shortage. Around 63,000 tons of Norðurál’s output is in the form of value-added product or alloy. Profits in 2022 amounted to 29.7 ISK.
More valuable products
Construction of Norðurál’s billet casthouse went well in 2022 and is scheduled to be completed in the first half of next year. The new casthouse will enable domestic production of more valuable aluminum products with a lower carbon footprint. Billet production in Iceland will reduce energy consumption by around 40%.
Governance
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.
Environmental Company of the Year 2022
On October 5, the Confederation of Icelandic Enterprise announced Norðurál as the Environmental Company of the Year. The jury praised the company for setting clear and reasonable goals through a climate action plan with well-defined objectives.
Graduation from the School of Heavy Industry
In December, ten students graduated from the Norðurál School of Heavy Industry. Nearly two hundred students have completed courses at the school since it opened in 2012. The school supports value creation by strengthening the company’s competitive edge, improving workplace safety, and increasing job satisfaction.
Staff participation in occupational risk management
The health and safety of staff is of utmost importance. Employees are trained in best practices and are informed of risks, ensuring work is not carried out in unsafe conditions. We emphasize active staff participation in accident prevention and improvements to workplace safety. Norðurál complies with all laws and regulations concerning health and safety.
Community
As west Iceland’s largest employer, Norðurál is committed to maintaining a desirable workplace that offers a variety of challenging jobs for all genders. In 2022, the company had 600 permanent employees, of whom 21% were women and 79% were men. We strive to maintain a safe and enjoyable workplace for all employees, and we actively support a wide range of socially beneficial causes.
Safety first
At Norðurál, we place great emphasis on occupational health and safety to prevent accidents and minimize hazards. To ensure the safety of staff, contractors, and visitors to the site, everyone who enters the facilities must familiarize themselves with and abide by the company’s safety rules. As reducing risk depends upon the joint effort of all employees at Norðurál, our motto is “One for all!” We look after one another and perform our duties as sensibly and safely as possible.
Commitment to health and well-being
Norðurál is committed to the high standards of its facilities and to providing a safe workplace. The company’s values of economy, unity, and integrity are reflected in our focus on human resources, the environment, and health and safety.
Community Projects
Norðurál supports a number of community causes, with more than 20 million ISK given to activities and organizations in 2022. We are a proud sponsor of the ÍA football club in Akranes and the Valur football club in Reykjavík, with a particular focus on young players. Additional sponsorship agreements have been made with Fablab and Leynir Golf Club. We have also given funding to the Mothers’ Support Committee, the Akranes ICE-SAR team, and other parties.
UN Global Goals
Norðurál focuses systematically on the following four UN Global Goals:
UN Global Goals
Iceland is a signatory to the United Nations Framework Convention on Climate Change (UNFCCC) as well as to the Kyoto Protocol and the Paris Agreement. The UNFCCC is the main forum for the nations of the world to agree on a coordinated response to climate change. It is essential that major Icelandic companies improve their environmental performance to support the government in upholding its commitments.
The United Nations has defined 17 Global Goals with 169 targets ranging from domestic affairs to global cooperation. These intertwined goals support the three pillars of sustainable development: economic, social, and environmental responsibility.
Norðurál focuses systematically on the following four UN Global Goals:
Gender Equality
Norðurál’s equal pay certification, our policy and objectives on equality and human rights, and our equality plan all support Global Goal 5: achieving gender equality and empowering all women and girls.
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.
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.
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.