Sustainability Strategy

In June 2023, a sustainability strategy replaced the environmental and resource policy of Reykjavík Energy (RE), as well as the strategy on social responsibility.

RE has committed to showing respect for the environment, resources, and the community in accordance with the company's ownership strategy. RE's sustainability strategy forms the basis for successful decision-making and good collaboration, built on information transparency. RE seeks feedback from stakeholders on the sustainability of its activities and responds to suggestions responsibly.

The sustainability strategy is based on RE's values – initiative, foresight, efficiency, and integrity - and is presented in alignment with the guiding principles of the company's ownership.

The sustainability strategy is based on six main principles that apply to all operational units of RE: Climate and climate risk, responsible resource management, quality of life, reduced emissions and improved utilization, being a good member of society, and daily operations. Emphasis is placed on the protection of drinking water, more sustainable use of resources, protection and restoration of biodiversity and ecosystems, carbon neutrality of RE's own operations by 2030, and also net-zero emissions for its supply chain by 2040, to enhance the resilience of society by adapting to climate change. In daily operations, emphasis is placed on efficiently using energy and resources in cooperation with suppliers and contractors.

RE defines the following aspects of sustainability as significant, in light of the principles stated in the sustainability strategy. RE sets goals for these sustainability aspects and defines responsibilities.

The operations of RE are not certified in accordance with a formal energy management system.

Responsible waste management

Greenhouse gas emissions from landfilled waste have decreased since 2016. The main reason is that instead of landfilling general waste, it is increasingly being incinerated. This transition significantly affects greenhouse gas emissions because the emission factor used in the calculations is different and lower than the one used for landfilled waste, as seen in RE's climate account for 2023 in appendix.

The amount of waste either decreased or increased. Appendices show how waste is divided among waste categories, operational stations, and municipalities.

Implementing circular economy

The portion of waste from wastewater treatment plants accounts for about 60% of the total waste volume and has increased since 2022, as shown in the chart below. There is no single explanation for the variation between years, but there is inconsistency in the data. The wastewater system has limited control over the amount of this type of waste generated at treatment plants since it originates from residents and businesses within the service area. In advertising campaigns, the wastewater utility has reminded the public of the damage that wet wipes and other trash can cause in the wastewater system.

The wastewater utility is keen on utilizing the part of sewage waste that is biodegradable, such as sludge and fat, as well as using the sand that accumulates there. As part of the implementation of a circular economy, the year 2023 was marked by:

• A contract was finalized with the sludge reception facility in Flúdir Town for receiving sludge from organic treatment plants in Borgarbyggd Municipality, see appendix.
• Completion of a feasibility study on the recycling of sand from wastewater treatment plants, which received funding from the Ministry of Environment, Energy, and Climate. The results will be useful in decision-making in these matters.
• A tender has been prepared on the reception of fat from wastewater treatment plants. Such a service has not been available on the market, and the wastewater utility, therefore, resorted to a so-called innovation-driven tendering process. It is hoped that the dense dialogue already made with the market and waste management enthusiasts will result in bids for the service in 2024.

In 2023, the district heating Utility began exploring possibilities for further utilizing residual hot water, as part of the implementation of a circular economy.