Climate change objectives

Reykjavik Energy Group aims to achieve carbon neutrality by 2030.

In 2021, the emission of greenhouse gasses decreased from the Reykjavik Energy Group and increased capture and storage of carbon dioxide into basaltic bedrock at Hellisheidi has the largest impact on reduction of greenhouse gas emissions from the Group. The percentage of reinjected and sequestered carbon dioxide from the Hellisheidi Geothermal Power Plant amounted to about 30% of its emissions. This is an increase from 2020. Electrical- and methane energy switching of the company's vehicle fleet also plays a crucial role, as well as proactive projects at Veitur Utilities, that aim at boosting the resilience of the utilities systems, due to climate crisis.

As a consequence COVID-19 and increase of telecommuting and decrease on work travel for the Group following the pandemic, emissions due to employees' commute and airline commute has decreased considerably the past two years.

In 2021 the Reykjavik Energy Group offset carbon emissions from the Group’s vehicle fleet, air travel, etc., by supporting the reclamation of the wetland areas in Iceland, in collaboration with the Icelandic Wetland Fund (Votlendissjóður), and by supporting UN's developmental aid project promoting clean cooking fuel in Malawi.

Guarantee of origin for electricity has been in place for the Group's total consumption of electricity, from 2016 to 2020. However, this was not the case with respect to Veitur Utilities, Reykjavik Energy and Reykjavik Fibre Network in 2015, which explains the large amounts of emissions that year.

Greenhouse gas emissions are calculated in accordance with the standard Greenhouse Gas Protocol – Corporate Accounting and Reporting Standard.

Direct & indirect GHG emissions

In 2021, Scope 1, or direct emissions from Reykjavik Energy Group's core operations, amounted to approximately 47,500 tonnes of CO₂ equivalents. Scope 2, or indirect emissions due to usage of electricity and hot water in the Group's core operations, was none due to the fact that the Group produces electricity for the national grid and emissions from that production are already accounted for in scope 1. Scope 3, or indirect emissions, was approximately 1,100 tonnes of CO₂ equivalents. The data for scope 3 are not exhaustive, as production of resources is not included. A project has been started to determine the role of procurement in OR‘s carbon footprint. OR aims to weigh climate issues more heavily into procurement in the future but steps have already been taken in tenders where contractors, suppliers and manufacturers supply OR with information regarding their product‘s or service‘s carbon footprint.

Reykjavik Energy Group accounts for approximately 1% of Iceland's total GHG emissions, based on total emissions recorded in 2019 (Environment Agency of Iceland, 2021).