Environment, Social, Governance

Arendals Fossekompani is the result of sustainable choices through generations.


    ESG in AFK

    For more than 100 years, we have produced hydropower which has been used to build Norwegian industry and Norwegian communities. The know-how, capital and engineering skills related to the production of hydropower have laid the foundation for Arendals Fossekompani to successfully own energy and technology related companies that help build a greener tomorrow.

    We continue to produce clean energy, but our contribution to the environment goes beyond the production of hydropower. Our companies help customers utilize their resources in a more sustainable way, and they provide technology, systems and solutions that make energy from renewable sources increasingly accessible and usable.

    By developing sustainable products and services, we ensure long-term value creation for shareholders, employees and society.

    The green transition is often referred to as a megatrend. For Arendals Fossekompani, it is not a megatrend. It is where we come from and who we are. At Arendals Fossekompani, we honor a proud heritage based on the belief that natural resources also belong to future generations.

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    Arendals Fossekompani is in the process of making our sustainability and social responsibility efforts more transparent and known. Based on several generations of renewable energy production and sustainable solutions, we are committed to showcasing our contribution to the UN Sustainable Development Goals.

    The UN Sustainable Development Goals consist of 17 main goals with a number of sub-goals. Some companies find many goals, even all of them, to be relevant. Arendals Fossekompani has chosen to focus on a few SDGs that are particularly relevant to the majority of our companies, and where we can most clearly make a difference.

    Clean energy is closely linked to Arendals Fossekompani’s historical role and the companies we invest in. The goal of access to reliable, sustainable and modern energy at an affordable price for everyone is at our backbone. We contribute by producing clean energy, and by helping other energy producers get the most out of their resources.

    Our story is also about industry, innovation and infrastructure. We built infrastructure for power production and distribution more than 100 years ago. And we have played an important role in an early process that triggered the building of Norwegian industries. Today, we are a global supplier of technology, systems and solutions for electrical infrastructure, for roads and for the construction sector.

    For our traditional production unit for hydropower, and real estate projects, such as Gullknapp Aerial Center and Bryggebyen, we will also prioritize measures and reporting related to SDG 5: Gender equality and SDG 8: Decent work and economic growth. These goals are in accordance with our values ​​and our way of working.

    Ethical Business Conduct

    Arendals Fossekompani established its own sustainability team in 2020. The team is cross-functional with four members, all of whom work together on strategic improvement projects related to sustainability. The team is headed by the ESG Director, who forms part of the Executive Management Team reporting directly to the Board of Directors of AFK.

    When relevant, both the Executive Management Team and the Board of Directors review specific sustainability topics, including HSSE, anti-corruption, ICT security and environmental impact and governance.

    The ESG Director also reports to the AFK Audit Committee. One of the Audit Committee’s purposes is to guide AFK’s work within governance, risk and compliance. The Audit Committee generally supports the Board of Directors. Topics related to governance and compliance is on the agenda of the Audit Committee in most meetings.

    The work we do on compliance and improvement of policies and guidelines, is according to the OECD Guidelines for Multinational Enterprises. The OECD Guidelines are also supported by the investment strategy in M&A processes and AFK’s Green Bond Framework.

    AFK etiske retningslinjer
    Varslingspolicy AFK
    Supplier Code of Conduct
    Standard documentation for supplier assessment

    Ingunn Ettestøl (left), Magnus Johansen and Kirsti Homstøl have prepared Arendals Fossekompani’s report for Sustainability and Corporate Social Responsibility 2020.

    Great Place to Work

    Arendals Fossekompani is more than a producer of hydropower. We are a green-tech investment company – the owner of energy and technology companies which enable the transition to a green economy. We seek a sustainable market to support a sustainable world.

    At Arendals Fossekompani we value our employees. Our goal is to be a preferred employer with a motivated workforce. We believe that being part of a bigger purpose, working for a more sustainable world, brings more value and motivation to our employees.

    The AFK Sustainability Team was established in 2020. Sporting a group of enthusiastic and ambitions people, the team is committed to improving the way AFK addresses environmental, social and governance issues. The team cooperates with a network of highly skilled people in the AFK portfolio companies.

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    Efforts for better working conditions bear fruit
    EFD Induction’s new building in Bengaluru, India, has been specifcally designed to be functional and encourage productivity as well as to be sustainable and energy saving – both during the building process and in use. The philosophy is summed up in four words: simplicity, rationality, transparency and energy efficiency.

    When EFD Induction opened their new state-of-theart factory building in Bengaluru, India, they planted mango trees in the garden for all to enjoy. The interior aims to generate a purposeful ambience that stimulates productive potential and employee comfort, with the assembly bay at the centre, ensuring a smooth productive process and communication for all. One wall is covered by green plants, forming a sort of vertical indoor garden.

    Outside, the sleek modern facade is juxtaposed by a lovely orchard where the trees not only serve as decoration and give much-appreciated shade, this year, for the frst time, they will also provide tasty treats.

    Climate impact

    It all started with waterfalls. Arendals Fossekompani was established in 1896 to harness the energy in running water. Our skills and competence in this area laid the foundation for things to come.

    Hydropower is still a part of our dna and our portfolio, but nowadays we’re more recognized as an industrial investor – the owner of international energy and technology companies.

    We have in fact worked with clean energy and green technology for more than one hundred years. One ripple effect from our economic success is the building of a modern portfolio of green-tech companies. Arendals Fossekompani is deeply invested in the green transition. We believe the green economy is the road to the future, and we will contribute to the journey.

    Our hope and goal for the green-tech companies we develop today, is that they will create positive ripple effects in the future.

    In 2020 we estimated the following CO2-emissions from our portfolio: XX tonnes CO2. In 2021 we will establish a baseline for CO2-emissions and set targets for CO2-emissions reductions for the future.


    Please find our annual Sustainability Report, together with other relevant publications about sustainability from Arendals Fossekompani.

    2020 Sustainability Report AFK
    April, 2021
    2019 Sustainability Report AFK
    April, 2020
    2021 Green Bond Framework
    January, 2021
    2021 Cicero AFK Second Opinion
    February, 2021