Reykjavík Energy's corporate governance strategy ensures professionalism, efficiency, cost-effectiveness, transparency, and responsible management. The principal operations of Reykjavík Energy are governed by Act no.136/2013. In 2014, its owners renewed the Partnership Agreement on operations, which was renewed by the company's owners, as well as revised the ownership strategy, dictating its corporate governance. The drafting of these documents, which apply to all the subsidiaries and provide rules of procedure for all the boards, was done in accordance with account guidelines, as established by the Chamber of Commerce in collaboration with the Confederation of Icelandic Enterprise (SA) and Nasdaq.
Reykjavík Energy's corporate governance strategy is considered to be in compliance with these guidelines.
In 2022, the City of Reykjavík, the largest owner of Reykjavík Energy, adopted a general ownership strategy that considers the OECD's guidelines for the governance of publicly owned entities.
The City of Reykjavík is leading the implementation of its policy regarding Reykjavík Energy. Several management changes occurred during this period.
In relation to the preparation for the capital increase of Ljósleiðarinn, which had been underway for several months, in 2023, the boards of Ljósleiðarinn and Reykjavík Energy requested an examination by the Internal Audit. This examination focused on handling confidential information presented to Reykjavík Energy's board and aligning Ljósleiðarinn's operations with Reykjavík Energy's ownership policy. The internal auditor's report, complete with observations and recommendations, was submitted to the boards in December 2023. By then, some of the issues identified in the report had already been rectified, and further actions were announced to address the remaining recommendations.
Veitur Utilities operates electric, heating, potable water, and sewerage utilities; mainly exclusively licenced operations. ON Power generates electricity and heat in power plants, and sells electricity in a competitive market. Reykjavík Fibre Network operates a fibre optic telecommunications network, serving homes and businesses. Carbfix is a start-up company, established to expand its carbon dioxide mineralisation technology. The parent company – Reykjavík Energy – is a serving parent company, supporting the subsidiaries with various central services.
