The function of Reykjavik Energy (RE) is to provide customers with access to water supply, sewerage system, electricity utility, district heating and fibre network. Its importance becomes clear as soon as one tries to imagine what life would be like without the services of Veitur Utilities, ON Power and the Reykjavik Fibre Network. Reykjavik Energy’s primary social responsibility lies firstly in ensuring that these diverse fundamental services are provided, and secondly in focusing on the manner in which those services are delivered. How will we be passing on the resources that we utilise to future generations? In what condition will the utility systems and power plants be when the next generation takes them over? Have we managed to reduce environmental impacts wherever possible? Will the know-how be in place to be able to carry out these important operations? Will Reykjavik Energy’s finances enable it to continue providing its services at fair prices in the future and will they earn its owners decent returns? The answers to these questions determine whether Reykjavik Energy’s activities support sustainable development and are socially responsible.
This report, which is being published in this new format, paints a picture of Reykjavik Energy’s activities in 2017 and endeavours to determine whether the Group is equipped to take on the future. The format of the report follows the example set by stock exchanges in Nordic countries and is designed to give a comprehensive overview of operating factors such as: environmental, social and managerial factors, in addition to the financial elements that are interwoven here. Environmental and resource issues are the most crucial, since the services of Reykjavik Energy and its subsidiaries are founded on a utilisation that must be sensible and sustainable in the long term. Reykjavik Energy’s ambition in tackling the issue of climate change also colours this report.
After the obligatory unbundling of Reykjavik Energy into different companies in 2014, efforts were made to implement efficient corporate governance within the companies of the Group and in its relations with the owners. I feel this has succeeded very well and the division of tasks between the Board of Directors, management and owners is clearer now than ever before. A clear division of tasks is a precondition for transparency in management. We on the Board of Directors of Reykjavik Energy strive to provide the public with information on the issues we are tackling, the decisions we make, and the grounds on which we base those decisions. We do this by publishing the minutes of board meetings on Reykjavik Energy’s website.
Transparency in management is also essential to enable the company and anyone who deals with it to discuss its operations together. We, who are responsible for operations, can argue that the management is socially responsible, but whether we really are or not must surely be determined by the outcome of a conversation between the company and its stakeholders. In this integrated 2017 Reykjavik Energy Annual Report, we place our cards on the table and welcome a dialogue. For the convenience of our readers we have linked the global objectives of the United Nations to relevant elements in the report.
The Board of Directors of Reykjavik Energy holds 16 meetings a year, in addition to the two statutory meetings with its owners in April and November. The Board of Directors follows a work plan which was fulfilled. We also formally evaluate our own work to ascertain whether we have worked on the tasks we have been entrusted with under the established rules.
I would like to express my deepest gratitude to the entire personnel of the Reykjavik Energy Group, management and board members for their good work in 2017.