3.4 Goods and Services Procured in Iceland

3.4 - Goods and Services Procured in Iceland


Vísir 3.4 Magn vöru og þjónustu framleitt á ÍslandiHere you can see the proportion of domestic goods and services in total procurement at Alcoa Fjarðaál and Landsvirkjun.



Results



Table 1. Proportion of domestic goods and services in total procurement

  Alcoa Fjarðaál
Landsvirkjun
 2007  79%  75%
 2008  75%  68%
 2009  72%  73%
 2010  76%  75%
 2011  75%  77%
 2012  76%  74%
 2013  76%  74%
 2014  76%  74%
 2015  65%  46%
 2016    66% 


Becthel, Alcoa's contractor in building the Aluminum Smelter has reported that in the year 2005 32,2%  of their total procurement was domestic. Similar information were not available from contractors working on the hydro project.

Raw data in Excel

Updated: October 2017
Sources: Alcoa Fjarðaál 2012-2016 , Landsvirkjun 2017  and Bechtel 2007.


Metrics, Targets and Monitoring Protocol


What is measured?

Percent of total goods and services (value in ISK) procured by Alcoa,  Landsvirkjun and subcontractors in Iceland (Project effect: direct).

Monitoring Protocol

Financial departments of Fjarðaál and Landsvirkjun will collect this information during operation, and ask for data from contractors where possible.

Target

Alcoa, Landsvirkjun and contractors have a policy of taking best offers when buying supplies. Therefore a target is not appropriate but data will be collected and reported

Possible countermeasures

Not applicable

Updated:  July 18 2016

Changes to indicator and metrics

It was decided in the forth phase of the initiative to change the numbers of the sustainability indicators.  This indicator war originally number 14.2 and is referenced as 14.2 in early documents of the project.

The original metric was „ Percent of total goods and services (value in ISK) procured by Alcoa and Landsvirkjun and subcontractors in East Iceland and Iceland.  In third phase the metric was changed so that „East Iceland“ was removed from indicator and metric.  The reason was that it is impractical to categorize procurement by East Iceland and Iceland and difficult to track.

Baseline

 

Table 1. Proportion of domestic goods and services in total procurement

  Alcoa Fjarðaál
Landsvirkjun
 2007  79%  75%


Rationale for Indicator Selection


The Fjarðaál and Kárahnjúkar projects have the opportunity to have a significant positive effect on the Icelandic economy through procurement of goods and services from local and National companies.

Many supporting industries could experience growth through the development of the projects both during the construction and the operation phases. A stable economy will be one that does not have an over-reliance on one source for income.

Monitoring the extent to which the projects contribute to the local and National economy will be useful in assessing the degree of reliance of supporting business on Alcoa and Landsvirkjun.