Integrity and human rights

Hydro's integrity program (HIP) is our main means to prevent corruption and human rights violations. The program includes risk mapping, tools and training. HIP is based on Hydro's code of conduct which is approved by the board of directors. The code was thoroughly revised in 2012. The AlertLine, replacing Hydro's former whistleblower channel, was launched in August 2012. Employees may report breaches or perceived breaches of Hydro's requirements through the channel. The AlertLine is served by an external company and all permanent and temporary employees can report their concerns at any time and in their own language through toll-free phone numbers, Hydro's intranet or the Internet.

Hydro supports the principle of freedom of association and collective bargaining and has a long tradition in maintaining a good dialog with employee organizations. As an employer, owner and purchaser, our most important role related to human rights is to secure decent working conditions in our own organization, in minority-owned companies and with our suppliers. In countries where the right to form trade unions is restricted, we try to find alternative forums for employee engagement to uphold the right of employees to influence their work situation, like in Qatar and China.

In 2012, Hydro spent NOK 39 million on community investments, charitable donations and sponsorships, of which more than half was related to community investments.

Hydro's supplier requirements related to corporate responsibility are an integral part of all stages of the procurement process. The requirements cover issues related to environment, human rights, anti-corruption and working conditions, including work environment. Implementation is risk-based and takes into consideration contractual value, country risk, etc. The principles include auditing rights and the contractors' responsibility toward subcontractors and their suppliers.

In 2012 the Danish Institute of Human Rights supported Hydro in completing a human rights risk mapping and gap analysis of our worldwide activities. Identified gaps were related to e.g. lack of human rights due diligence being part of Hydro's formal governance system, lack of formal, company-wide grievance mechanisms open to all stakeholders and addressing issues on unionizing and collective bargaining in countries where free trade unions are not permitted. Most gaps were closed during 2012. In 2013 we aim at developing a pilot grievance mechanism for our activities in Barcarena, Brazil (Albras, Alunorte and the alumina refinery project CAP).

Our most important voluntary commitments are the support of the principles set out in the Universal Declaration of Human Rights and the UN Global Compact. We also support the OECD's Guidelines for Multinational Enterprises and report voluntarily on payments to host governments, in connection with exploration and production of bauxite and alumina, based on the principles in the Extractive Industries Transparency Initiative. Since 2011 we have been a member of the International Council on Mining and Metals (ICMM) and are committed to following the ICMM's 10 principles and position statements. We use the Global Reporting Initiative (GRI) G3 Guidelines for voluntary reporting of sustainable development. See www.hydro.com/gri