Sustainable business practice
Sustainability is at the core of how we do business. We ensure responsible and ethical business practices across our operations, supply chains, and projects through clear governance, risk management, and proactive measures. This includes protecting human rights, ensuring fair working conditions, and minimizing environmental impact.
Our management system, The Statkraft Way, includes how we monitor and regularly review our practices to improve health and safety, business ethics, and environmental practices. Supported by our Code of Conduct, Supplier Code of Conduct, and HSSE policies, this framework defines how we operate ethically and responsibly across all regions and activities.
We adhere to international standards such as the OECD Guidelines for Multinational Enterprises and the UN Guiding Principles on Business and Human Rights, ensuring compliance with the highest ethical standards.
Due diligence: How we prevent negative environmental and social impacts
At Statkraft, we have developed and implemented six steps to ensure we uphold human rights in our business practices. These take direction from the OECD’s Due Diligence Guidance for Responsible Business Conduct.
We assess environmental, social, and economic risks before making investment decisions. Our teams and independent experts evaluate potential risks to communities, ecosystems, and workers to ensure that projects are developed responsibly. This is highly specific to each construction project due to local circumstances. As a result, we are dedicated to devising individualised strategies that do not fall into a one-size-fits-all approach
Early engagement with local communities helps us understand their concerns and assess potential impacts on Indigenous and tribal peoples, livelihoods, and the environment. This includes evaluating cultural and religious significance, land ownership issues, and potential conflicts, all of which are addressed through consultation with affected groups.
Statkraft teams are dedicated to establishing, building, and maintaining relationships to navigate situations characterised by conflicts of interest and ultimately arrive at solutions that everyone can live with.
We integrate these considerations into core business processes, including procurement, mergers and acquisitions, human resources management, capital investments, and greenfield developments.
Reducing harm and strengthening protections
We integrate our human rights commitments into daily operations through measures like Environmental and Social Management Plans (ESMPs), Human Rights Action Plans, and whistleblowing channels.
We continuously strengthen and promote our grievance mechanisms to ensure accessibility and transparency in all our operations. These mechanisms allow workers, communities, and other stakeholders to report concerns, ensuring fair and constructive resolutions.
To secure a safe workplace in all operations, we launched our improvement programme, Powered by Care, in 2015 a framework for managing employee health, safety and security (HSS) with an overarching goal of no serious injuries. This is continuously developed and improved to strengthen our HSSE culture and results.
Responding when challenges arise
If we identify risks or negative impacts, we take action. We work to prevent harm, and if issues occur, we find solutions—whether that’s improving labor conditions, restoring the environment, or compensating affected communities.
Grievance mechanisms ensure that concerns and complaints can be raised freely and will be addressed in a fair, transparent, and objective manner. All grievances are confidential, and some cases may be treated with additional internal confidentiality based on the sensitivity of the concern.
Tracking progress and ensuring accountability
We track progress, monitor compliance, and continuously improve. Our efforts are documented in our Annual Report and Modern Slavery Disclosure. We also engage with industry networks and civil society to strengthen best practices.
Our Corporate Management’s Human Rights Commitment Statement outlines our approach to respecting human rights, ensuring that we embed these commitments into all levels of decision-making.
Ensuring a responsible supply chain
Statkraft is committed to promoting decent working conditions across its supply chain by partnering with suppliers who share its commitment to human rights, fair wages, and ethical labor practices. While Statkraft has greater control over conditions at its own sites, it actively works with suppliers to increase transparency and identify potential risks further down the supply chain. This includes ensuring that workers receive a living wage, fair working hours, and safe conditions.
To make this commitment a reality, Statkraft is implementing a step-by-step plan to define and ensure a living wage in all 19 countries where it operates. Additionally, Statkraft complies with national working hour regulations and follows the International Labour Organization (ILO) recommended limits to safeguard worker well-being.
Preventing forced and child labour
All Statkraft employees, contractors, and suppliers have a fundamental right to work free from forced labor, servitude, or slavery. This is especially relevant in greenfield solar projects, where new construction increases the risk of labor rights violations. To mitigate this, Statkraft has taken proactive steps to ensure that future solar power contracts are awarded to suppliers that source materials from low-risk countries and regions where forced or compulsory labor is less prevalent.
Assessing suppliers for ethical and sustainable practices
Statkraft includes sustainability requirements in its procurement processes to ensure suppliers respect human and labor rights. Potential suppliers are assessed on their commitment to ethical standards, and contract obligations require compliance with Statkraft’s Supplier Code of Conduct. This approach aligns with OECD Guidelines for Multinational Enterprises and the OECD Due Diligence Guidance for Responsible Business Conduct. The Supplier Code of Conduct requires suppliers to conduct Human Rights Due Diligence in alignment with international frameworks, such as the UN Guiding Principles on Business and Human Rights. By collaborating with suppliers and enforcing ethical requirements, Statkraft aims to prevent negative labor impacts and contribute to a more responsible renewable energy industry.
We partner with EcoVadis as part of our supplier assessment to evaluate suppliers’ sustainability performance. These assessments also support our risk management efforts by identifying potential risks in the supply chain based on sustainability criteria.
Managing supply chain risks
Statkraft recognizes that adverse impacts in global supply chains cannot always be eliminated immediately. While it strives to manage risks, the company acknowledges that controlling all potential labor and human rights violations remains a challenge. To address this, Statkraft is continuously working to improve risk identification, strengthen supplier oversight, and enhance transparency across its procurement processes. In order to drive improvement in supplier performance, we undertake reviews and inspections of our suppliers.
We have developed a framework and methodology for supply chain due diligence, named Know Your Supplier (“KYS”). This includes risk assessment and management at supplier’s own operations and their respective supply chains.
Contributing to the UN Sustainable Development Goals
As a global renewable energy company, Statkraft plays a vital role in advancing the UN Sustainable Development Goals (SDGs), particularly Climate Action (SDG 13) and Affordable and Clean Energy (SDG 7). By scaling renewable energy solutions, we help reduce global emissions, replace fossil fuels, and expand access to clean power.
Our efforts also support Decent Work and Economic Growth (SDG 8) and Industry, Innovation, and Infrastructure (SDG 9) by driving sustainable economic development and job creation. At the same time, reducing reliance on polluting energy sources contributes to Good Health and Well-being (SDG 3) by improving air quality and reducing environmental health risks.
We recognize the need to minimize environmental trade-offs, particularly in relation to Life on Land (SDG 15). Our sustainability measures focus on balancing energy production with ecosystem protection.
Achieving global climate goals requires strong partnerships. Through Partnerships for the Goals (SDG 17), we share expertise and collaborate to advance the transition to sustainable energy.
By aligning our business practices with the SDGs, we are helping to build a more sustainable, inclusive, and resilient future.