When it comes to procurement, Reykjavík Energy aims to:
- Use open procedures for the purchase of goods, services, and construction projects. When evaluating tenders, to account for sustainability considerations and accept the most favorable bid. In other cases, different procedures shall be applied in accordance with applicable law and regulations.
- Provide clear and transparent procurement rules and methods.
- Ensure equality, transparency, and efficiency in all procurement.
- Account for sustainability considerations, e.g. quality, health, human rights, environment, information security, and safety considerations in all procurement processes and contracts.
Supplier Code of Conduct
Further emphasis was placed on the sustainability goals of this policy in 2020 and in 2021 the company issued a code of conduct for suppliers, based on the procurement policy and the United Nations' Global Compact's ten basic principles, which the Group adheres to. Concurrently, work procedure was established, concerning reaction in case of information of noncompliance.
Requirements, which are at least equivalent to the Code of Conduct for Suppliers, can be found in the terms of all calls for tenders by Reykjavik Energy Group.
The table shows the proportion of purchases by the OR Group that falls under the Code and the proportion of suppliers that have approved them, either by signing them or by participating in tenders.
At the end of 2021 96 suppliers had confirmed their abidance to the Code.
In 2021 56% of all the Group's purchases followed tendering. That portion in 2020 was 61% and the decrease is due to more purchasing of electricity for resale in 2021.
Carbon footprint of purchased goods and services
In evaluating bids, OR takes into account more factors than price, and in 2021 work continued on calling for a carbon footprint of purchased goods or services. This is especially important when tendering for the services of contractors, as a significant part of the carbon footprint of the companies in the Group is due to combustion of machinery during construction work. This effort to reduce carbon footprint is certainly a challenge.
The Reykjavik Energy Group has laid down joint liability in its work contracts with regard to protecting the rights of employees of contractors and their sub-contractors. Evaluations of contractors are based on their performance on safety and environmental issues, as well as the quality of their work and reporting. If a contractor's performance is deemed unsatisfactory in the evaluation, business with them is halted, at least temporarily.
There was no instance in 2021 of an offer being rejected due on a suspicion of an abusive change of social security number , but one offer in a price survey by OR was rejected year due to an unacceptable result from the contractor's assessment. The tenderer then awaited imprisonment following a verdict for a violation of the Penal Code.