Finance

Orkuveita Reykjavíkur emphasises transparency in its operations. Financial issues are pivotal in that respect.

Financial reports

Here you will find all of Reykjavik Energy's financial reports in English. 

23.05.2016

Key financial figures

Risk policy

The risk policy’s main objective is to ensure that Orkuveita Reykjavíkur (OR) is able to perform its basic roles with the lowest possible risk. OR does this by:

  • Reducing fluctuations in OR’s income with regards to underlying risks in operations and ensuring that risk factors are within the defined limits set by the Board of Directors (BoD) and listed in the risk manual. The diagram below specifies OR’s main risk factors.
  • Ensuring that OR has sufficient liquidity to finance necessary infrastructure for services and regular activities.
  • OR strives to ensure access to diverse funding from multiple financial institutions, avoiding dependence on few counterparties.

The BoD entrusts OR‘s Risk committee with the responsibility of complying to the risk policies objectives and keeping risk factors within limits set by the BoD. Changes to the limits require approval by the BoD. The risk policy builds upon OR’s values and overall policy and is set in accordance with the company’s owners policy.

Green Bond Framework

Reykjavik Energy has established a Green Bond Framework which is a platform for OR‘s green bond issuance. Operating an environmentally and socially sustainable business constitute the basis of OR´s long-term strategy. The establishment of the Green Bond Framework confirms OR´s committment to put a greater emphasis on sustainable financing by mobilising debt for environmental efforts.

The proceeds from the Green Bonds will be utilised to finance or refinance eligible projects that have environmental benefits. Eligible projects include, for example, renewable energy, energy distribution and management and sustainable water and wastewater management.

The Green Bond Framework is in line with the Green Bond Principles (GBP) issued by the International Capital Market Association (ICMA). The GBP have four core components:

  • Use of Proceeds
  • Process for Project Evaluation and Selection
  • Management of Proceeds
  • Reporting

OR has acquired a second opinion of its Green Bond Framework from CICERO, Center for International Climate Research. Based on CICERO´S review, OR´s Green Bond Framework is rated Dark Green, the governance structure in the framework is excellent and the overall framework is in alignment with the four pillars of the Green Bond Principles.
 

PDF iconReykjavik Energy (OR) - Green Bond Framework


PDF iconReykjavik Energy (OR) - Second Opinion - CICERO