Corporate responsibility

Statkraft has defined clear goals as regards corporate responsibility in all activities. The Group shall provide a safe and healthy working environment where people, the environment and assets are safe-guarded and protected. Statkraft addresses climate challenges by offering renewable energy in a sustainable manner.

In order to discharge the Group's corporate responsibility, Statkraft's actions are guided by globally recognised initiatives and standards, including the OECD's Guidelines for Multinational Enterprises and IFC's Performance Standards on Social & Environmental Sustainability.

Statkraft is a member of the UN Global Compact and through this committed to following up the initiative and its ten principles concerning human rights, labour rights, environment and anti-corruption, as well as reporting the results annually to Global Compact's membership register.

Statkraft aims to be an industry leader as regards corporate responsibility. Assessments from independent rating agencies provide an indication of the Group achievements in that regard. In 2013, Statkraft was considered be a leader in corporate responsibility in the oekom Corporate Rating.

Below is a brief summary of Statkraft's work and results in the corporate responsibility area in 2013.

Management of corporate responsibility

Statkraft's fundamental principles for acting in a sustainable, ethical and socially responsible manner are described in Statkraft's code of conduct. The code of conduct applies to all employees and companies in the Statkraft Group, and Statkraft's business partners are expected to have standards in accordance with Statkraft's code of conduct. Statkraft has also prepared corresponding guidelines for the Group's suppliers. In 2013, the Group has worked actively to strengthen the follow-up of Statkraft's suppliers by implementing the "Responsible Supply Chain" - a risk-based tool to identify and follow up risk elements throughout the purchasing process.

Follow-up of Statkraft's corporate responsibility is an integrated part of Statkraft’s management system, The Statkraft Way. The management system is the basis for a sound, structured and uniform handling of the company's corporate responsibility, and the system is regularly evaluated to adapt it to new environments and challenges. The performance for corporate responsibility topics is followed up in different ways. Some topics are incorporated in the score card both at the Group level and for the business areas, while others are followed in regular performance reviews for each business area and through the work of the corporate audit unit. Parts of Statkraft's activities are certified in accordance with the ISO 9000 quality management standard and the ISO 14001 environmental management standard.

In 2013, the work focused on strengthening implementation, results and compliance within two key areas; anti-corruption and health and safety. Within anti-corruption, the work has focused on training measures and implementation of risk-reducing measures. The measures include customised training. As part of the Group's health and safety work, a new tool for follow-up of measures and results has been implemented in 2013.

Follow-up of corporate responsibility is an important factor in development projects and acquisitions. Statkraft has developed a decision-making model for execution of major development projects, mergers and acquisitions, integrating important corporate responsibility issues.

The right expertise in the entire organisation on all topics relating to corporate responsibility and how to safeguard this in both the project and operating phase is a success factor to achieve the company's goals. Statkraft therefore works systematically to build expertise and transfer experience, and has prepared anti-corruption and health and safety manuals and training programmes. Corporate responsibility is also an integrated topic in the introduction programme for new employees and in the Group's manager training.

Statkraft is concerned with ensuring transparency as regards dilemmas and ethical issues, and has established the Integrity Helpline, where employees can seek advice as regards interpreting Statkraft’s code of conduct and desired behaviour. Statkraft's code of conduct emphasises that employees have both the right and duty to blow the whistle when discovering legal or ethical violations, either through the line management or to the independent whistle-blower channel of the corporate audit unit.

In development projects, any complaints from stakeholders are registered and handled in line through projects grievance mechanisms.

Health and safety 

Statkraft shall provide a safe and healthy working environment. The objective is that the company's activities shall result in zero serious injuries. Good planning, including setting requirements and vigilant follow-up in all project phases and operating activities, is decisive for achieving this objective. Correct and adequate health and safety expertise among employees, contractors and sub-contractors is the basis of the Group's health and safety work. The Group's management and follow-up of health and safety is based on the requirements in the OHSAS 18001 standard and international good practice.

Nevertheless, there were still two fatal accidents in connection with Statkraft's activities in 2013, one of which was work-related.

The work-related fatal accident took place in the Cheves development project in Peru, which is wholly owned by SN Power. The accident took place in August, when a contractor employee died from crushing injuries during tunnel work. The main conclusion from the investigation was that the work was carried out in an area that was inadequately secured, and the practices were changed immediately after the accident.

A third party suffered a fatal accident in May, when a person was found drowned near the Pariac hydropower plant in Peru, also owned by SN Power, in May. The accident happened in an open part of the canal which had not been secured in accordance with applicable requirements due to a dispute with the landowner. Measures were initiated to secure the canal after the accident.

Several of injury indicators have improved in recent years. Seen in a long-term perspective, the work to prevent work-related injuries is progressing. The indicator for lost-time injuries, H1, was 3.5 (3.8) among the Group's employees and contractors in 2013, while the indicator for all types of injuries, H2, was 6.6 (6.6). In total, 230 (239) injuries were registered, of which 123 (138) lost-time injuries, among the Group's employees and contractor employees. In addition, 9415 unsafe conditions (8239) and 1531 near-misses (363) were registered. 49 of the accidents and near-misses had a serious potential and have been subjected to thorough investigation and follow-up.

The Group works systematically to avoid injuries and damage in all activities. All incidents with a large injury or damage potential are followed up closely in accordance with set requirements, and the intention is to share experience throughout the Group. A new tool for self-evaluation of the health and safety work has been implemented in all business areas in 2013, and the results from this evaluation will be incorporated in the Group's performance follow-up process. Increased traffic safety has been a particular focus area in 2013, especially in development projects outside Norway.

Absence due to illness in Statkraft has been stable, and was 2.9% (3.1%) in 2013, which is within the goal of an absence due to illness rate lower than 3.5%. All Norwegian companies in the Group have entered into Inclusive workplace (IA) agreements, with active follow-up of absence and adaptation of the work as needed.

Security

Statkraft works systematically in relation to security and emergency preparedness and aims to comply with international best practice. The handling of security issues is partly based on directions provided by the Voluntary Principles on Security and Human Rights. There are four areas covered  by the umbrella term security in Statkraft:  personnel security, physical security, ICT security and information security.

In order to strengthen this work, a project was established in 2013 to identify improvement areas and specific improvement measures, and to ensure coordinated handling of security issues.

Climate and environmental impact 

Statkraft's environmental ambition is to offer renewable and sustainable energy solutions. Continued growth in combination with international good practice for environmental management are key elements to achieve this ambition.

There were no serious environmental incidents in the Group in 2013. 127 (128) minor environmental incidents were registered, of which two had a high environmental risk. Most of these were in connection with short-term breaches of the river management regulations and minor oil spills. These incidents had little or no impact on the environment.

Statkraft's emissions of greenhouse gases were 460 900 tonnes of CO2 in 2013 (483 879 tonnes), of which 78% (82%) came from the Group's gas power activities. About 97% (97%) of the Group's power and district heating production was based on renewable energy sources in 2013.

In 2013, Statkraft consumed 882 GWh of electricity. All electricity consumed in the Group has been certified as renewable in accordance with RECS (Renewable Energy Certificate System). Furthermore, Statkraft generated 86 000 tonnes (79 000 tonnes) of hazardous waste from power and district heating production. The waste was treated in accordance with applicable regulations. Most of this (62%) was residual products from Statkraft’s waste incineration plant.

Social impact

Statkraft generates great value for society, both directly and indirectly. At the same time, all power production, even renewable power production, is associated with different forms of interventions in society and nature. Statkraft works systematically to reduce the negative effects as much as possible and to safeguard all stakeholders in a good manner. This is done through structured processes where close dialogue with everyone affected by the company's activities is a key element. Several factors, such as environmental consequences or health status, are carefully assessed, measured and followed up throughout the projects.

The Group's financial value creation amounted to NOK 20 824 million in 2013 (NOK 14 883 million). Values created are distributed to a number of stakeholders.

Total investments amounted to NOK 13 344 million in 2013 (NOK 11 721 million), of which NOK 7338 million was invested in Norway (NOK 1753 million). This included the transfer of power plants from Statkraft SF. 85% (69%) was in connection with expansion of production capacity.

Business ethics and anti-corruption work

Statkraft has committed to a high ethical standard and business culture, with zero tolerance for corruption. Based on the requirements in the management system, Statkraft implemented several measures to combat corruption in 2013. Special attention has been directed at the development of dilemma-based training modules and their implementation in those parts of the organisation where the risk of ethical issues is considered to be highest.

Another focus area in 2013 has been the development of a guidance tool to assist employees in the handling of ethical dilemmas and document the assessment process. The implementation of the new tools continue in 2014, supplementing the existing manual and e-learning tools relating to anti-corruption.

Human rights

Statkraft is present in parts of the world where human rights follow-up can be challenging. This is something the Group takes seriously. For instance, Statkraft sets clear requirements to suppliers, both through the Supplier’s Code of Conduct and the tools for supplier follow-up, and has incorporated human rights as an integrated part of the company's project management tools.

In order to strengthen the follow-up of human rights, Statkraft prepared a steering document in 2013, based on the UN's Guiding Principles on Business and Human Rights. Further initiatives to support the implementation will be carried out in 2014.

In 2012, a complaint was lodged against Statkraft before the OECD's Norwegian and Swedish contact point (Kontaktpunktet) for multinational companies in connection with the development of wind power in Sweden. The case is still being processed.

Employees and organisation

Clear leadership, a positive working environment conducive to professional development and expertise development are strategically important areas in Statkraft. Statkraft's management platform describes the most important drivers for good management, and all managers are regularly measured against them. Expertise development is followed up through appraisal interviews, and employees are, in addition to courses and further education, encouraged to seek internal rotation.

An annual employee survey is held in Statkraft, Skagerak Energi and SN Power, and the results from the survey in 2013 were, as in previous years, very good. As regards the indicator "Job satisfaction", Statkraft's score was 73 in 2013, well above both the Norwegian and European industry index (69).

Statkraft works in a focused and systematic manner to recruit and is an attractive employer both among graduates and experienced employees. The Group has a trainee programme, where five new trainees were enrolled in 2013.

Statkraft aims for a close and structured cooperation with all represented trade unions. In addition to national cooperation with trade unions, Statkraft has established a European works council (Statkraft European Works Council, SEWC), with employee representatives from Norway, Sweden, Germany and the UK. SEWC is an important cooperation forum for coordinating and implementing principles and guidelines as regards labour issues and labour rights in Statkraft.

The Group recognises the ILO Convention on labour rights and relevant EU directives have been included in the SEWC agreement with EPSU (European Federation of Public Service Unions), the federation for European unions within the energy industry.

Statkraft wants a diverse working environment and considers equal treatment a tenet in its recruitment and HR policy. Objective and professional recruitment processes will ensure that the best qualified candidate is chosen. Statkraft is one of the partners of Alarga, a foundation working to increase the percentage of employees with multicultural expertise in Norwegian industry and commerce.

Statkraft strives to attain an even gender distribution in the Group, and more women in managerial positions. Statkraft and a number of other major Norwegian companies participate in a research project to identify specific measures to improve the gender balance in executive positions. In 2013, 23 per cent (24 per cent) of the Group's employees were women and the percentage of women in managerial positions was 22 per cent (21 per cent). The female percentage among new employees was 23. 44% of Statkraft's board members are women. The relationship between average wage for women relative to men among all employees in Statkraft was 0.92 in 2013. The board follows up the work to achieve an even gender balance, including compliance with statutory requirements relating to gender distribution in the boards of subsidiaries and companies where Statkraft has major ownership interests.

At the end of 2013, the Group had 3493 (3475) full-time equivalents. The Group had employees in 23 countries, and 34% (34%) were located outside Norway. Average seniority in Statkraft was 10.9 years and staff turnover was 6.0% (5.7%).