The Ideology

The Ideology

Alcoa and Landsvirkjun have developed a process for implementing the sustainability initiative in Eastern Iceland. Integrated in the process are Alcoa's and Landsvirkjun's company policies that reflect environmental, social, and economic performance considerations and the active involvement of local, regional, national, and international stakeholders in all phases of the process. Sustainable development requires an integrated approach to decision-making linking the economy, the environment, and society rather than a piecemeal approach. Development of this type is a complex process of interaction between public authorities, civil society, and the private sector.

The process developed was divided into four sequential phases, each with several tasks that are described here below. Phase 1 includes context and effects, phase 2 includes indicators and baseline, phase 3 includes a plan for implementation and phase 4 includes the implementation and operation of the initiative.


Context and Effects

This phase established the foundation for the initiative and included identifying goals, identifying and engaging stakeholders, and identifying issues/risks/opportunities. The phase was finished by year-end 2004.

  • Defined the goals of the initiative and customized the process for this initiative (see further).
  • Identified key stakeholders and created an Advisory Group during spring 2004 (see further). In forming the Advisory Group, Alcoa and Landsvirkjun attempted to achieve a balance of perspectives (e.g., social, economic, and environmental); appropriate geographic representation (e.g., East Iceland and elsewhere); the involvement of stakeholders both in favor of and concerned with the projects; and a cross section of government, NGO, community, and business representatives. The role of the Advisory Group was to participate in the development of sustainability indicators and potential metrics for measuring the companies' performance.
  • Coordinated two Advisory Group meetings that focused on identifying issues and concerns and discussing indicators and metrics.

Indicators and Baseline

Phase 2 was finished in the spring of 2005, with the publication of the Phase I/II Report: Identification of Sustainability Indicators report.This phase involved developing the indicators and metrics, determining the types of effects that Alcoa and Landsvirkjun have on each indicator, and gathering existing or collecting new baseline data. Specific details on developing indicators and metrics and determining the types of effects are presented here.

The design of the initiative assumed that at the end of this phase, the stakeholder group's work would be finished. It would be up to the companies themselves to set objectives and form an implementation plan. During the group's last meeting, the members expressed their interest in further participation and consultation on setting objectives.

Plan for Implementation

This phase involved identifying the roles for persons and/or entities responsible for providing data and implementing the process; coordinating with external parties involved in implementing the process, as applicable; establishing targets and monitoring protocols; and preparing an Implementation Plan. The stakeholders' group 4th meeting was held, with the aim og review a draft for the objectives and implementation plan.

This phase was finished in February 2006 with the publication of the  Phase III Report: Implementation.

This phase involved implementing the monitoring plan developed in Phase 3 and recording started on observations and measurements. Further information on baselines was sought. Indicators and metrics were reviewed, and in some cases, the prerequisites had changed, or an indicator proved inapplicable. Therefore some indicators and metrics had to be aborted or changed, or new ones added. All information on changes to indicators or metrics can be found here.

This homepage is also a part of phase 4. All information on measurements and the development of individual indicators will be published here. This information will be updated annually for as long as needed. Reactions to possible changes that measurements may reveal will also be introduced on this homepage.