Efficiency is one of Reykjavík Energy’s core values and one that is particularly applicable to the company's finances. Efforts are directed towards financial goals that promote RE and its subsidiaries to:
Reykjavík Energy, wholly owned by municipalities, views that the company's financial strength generally supports the United Nations' Sustainable Development Goal number 11 concerning sustainable cities and communities.
For the first time, RE is disclosing financial information in accordance with the EU Taxonomy Regulation, which became effective in this country on June 1, 2023, under law number 25/2023. The regulation aims to assess, with unified environmental and climate benchmarks, which activities are considered sustainable. To meet these benchmarks, the activity in question must be considered a significant contribution to one of the following environmental objectives without causing significant harm to the other objectives:
In this initial application of the taxonomy, RE's activities are only assessed based on the climate change mitigation benchmark. If the activity, such as energy production from renewable sources, was assessed to potentially harm other objectives, it was evaluated accordingly. In the next implementation phase by the RE, activities will also be baseline assessed against other environmental criteria.
From the specified activities in the taxonomy regulation, ten operational elements practiced within the Utility Company conglomerate were identified as classification eligible. The figure below provides an overview of the proportion of investments, expenses, and revenues of the RE group concerning whether it aligns with the taxonomy regulation, is eligible but is not proven to meet its assessment criteria (eligible but not aligned), or falls outside the taxonomy regulation's activity categories, is non-eligible.
KPMG has compiled Reykjavík Energy's tax footprint for the year 2023. The tax footprint consists of taxes that are charged to RE's operations and the taxes that its subsidiaries collect and pay to the state, municipalities, and pension funds.
In the year 2023, Reykjavík Energy's tax footprint amounted to ISK 10,522 million. KPMG's report is attached here below (IS), in which it is also stated that RE's value creation amounted to ISK 61.7 billion in 2023.
