Reykjavík Energy's policy is to:

• Utilize open bidding processes for the acquisition of goods, services, and construction projects, ensuring that sustainability considerations are accounted for and that the most favourable bid is selected. If this is not possible, alternative procurement strategies should be employed, adhering to the relevant laws and regulations.
• Maintain procurement rules and methodologies that are both clear and transparent.
• Uphold principles of equality, transparency, and cost-effectiveness in all procurement activities.
• Incorporate sustainability considerations, including aspects related to quality, health, human rights, environment, information security, and safety, into the procurement process and during the management of 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 Reykjavik Energy adheres to. Concurrently, a work procedure was established concerning reactions in case of noncompliance information.

Reykjavík Energy's calls for tenders contain requirements that are at least equivalent to the Code of Conduct for Suppliers. The company's goal in issuing these ethical guidelines is to ensure that the sustainability criteria specified in tenders are applied to both large and small suppliers.

At the end of 2023, 121 suppliers had confirmed their abidance to the Code. Additionally, a direct reference to the Code is now a part of all tendering by Reykjavík Energy.

In 2023, 57% of all the company's purchases followed tendering. That portion was 59% in 2022, 56% in 2021, and 61% in 2020.

Sustainability assessment of Reykjavík Energy's suppliers

Along with Reitun's sustainability assessment of Reykjavík Energy 2022 and 2023, the company asked Reitun to evaluate the status of the company's suppliers based on the company's evaluation model. The sample of the suppliers was chosen both with regard to the volume of business and the variety of products and services purchased from them. The aim of the assessment was to obtain a measurement of how suppliers stand up to sustainability measurements.

As the graph below shows, the spread of performance is considerable. In general, larger suppliers, most of which were assessed in 2022, outperformed smaller ones. A small number of contracting companies came out worst in the assessment.

In 2023, a meeting with suppliers was convened to discuss the comprehensive outcomes of the evaluation and outline Reykjavík Energy's expectations. During this meeting, suppliers and their associated manufacturers indicated that considerable efforts were being devoted to sustainability, focusing on climate change initiatives.

Carbon footprint of purchased goods and services

When evaluating offers, Reykjavík Energy takes into account more factors than price, and in accordance with Orkuveitan's work on climate issues, special emphasis is placed on calling for the carbon footprint of the purchased product or service. This work is discussed in more detail in chapter E1 Greenhouse Gas Emissions.

Joint liability

Reykjavík Energy has established joint liability in its work contracts to protect the rights of contractors' employees and subcontractors. Contractors are evaluated 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.

In 2023, no offer was rejected due to suspicion of an abusive change of social security number.