(1) Viability performance – reporting The Hydro Way Presented by Kirsten Margrethe Hovi 2008 June 3 rd

(2) The Hydro Way Hydro’s mission is to create a more viable society by developing natural resouces and products in innovative and efficient ways Building businesses that matter A passion for social commerce Always looking for commercial solutions Making the most out of what’s available Courage Respect Cooperation Determination Foresight Our mission Our institutional talents Our values

(3) The Hydro Way Hydros formål er å skape et mer livskraftig samfunn gjennom nyskapende og effektiv utvikling av naturressurser og produkter Vi skaper virksomheter og produkter som betyr noe Vi er opptatt av samfunnsbevisst forretningsdrift Vi er alltid på jakt etter gode kommersielle løsninger Vi får mest mulig ut av det som er tilgjengelig Mot Respekt Samarbeid Målrettethet Framsyn Vårt formål Våre talenter Våre verdier

(4) Background ● First environmental report in 1989 ● From 1999 the non-financial reporting was published as a separate chapter in the annual report ● Introduction of The Hydro Way and demerger of Yara in 2003 identified a need for renewed and more systematic reporting ● From the annual report 2004, we have strived for an integrated approach – based on The Hydro Way

(5) More than environment … ● Environment ● Safety ● Security ● Health and work environment ● People development ● Organisation including restructuring ● Integrity ● Human rights ● Innovation ● Corporate governance

(6) Why report? ● Document internally and externally responsible business practice ● Give investors and analysts the information they need ● Inform and assure relevant stakeholders ● Attract the right people ● Create pride and confidence in the organisation ● Emergency preparedness

(7) Legge inn presse-eksempler fra den andre presentasjonen

(8) Important standards ● Global Reporting Initiative ● GRI Index included since 2003 ● Organizational stakeholder since 2004 ● UN Global Compact’s Progress Report ● Member since 2000 ● AA1000 Assurance Standard ● Since 2004 ● Auditor’s recommendations published for the first time in 2007

(9) And more than the annual report … ● Dow Jones Sustainability Index ● Listed every year since 1999 ● Listed as number 1 in the Aluminium and Basic Resources since 2006 ● FTSE4Good ● Listed every year except one since the start in 2000 ● Storebrand Best in Class ● Ethibel Global Pioneer ● Carbon Disclosure Project ● Listed every year since the start in 2003

(10) Other feedback ● Deloitte – 2004 report ● A unique, thoughtful demonstration of The Hydro Way, its talents and why this suits Hydro ● Hallvarsson & Halvarsson – 2005, 2006 and 2007 ● Hydro ’ s CSR reporting on web given top rating ● Farmand – Annual report 2006 ● ”Årets vinner av Farmandprisen leverer et kunststykke av en årsrapport med en suveren dybde og bredde i informasjonen”

(11) Challenges ● Our competitors competitive spirit ● Management attention ● Isn’t this just about communication? ● Communication is important ● Substance is key ● Lack of living our values – foresight, respect, courage, cooperation, determination

(12) Going forward ● From policy to what we actually do ● Standards important ● GRI ● Global Compact ● AA1000 Assurance Standard ● 3rd party verification ● Especially for international companies ● Transparency is key ● How our stakeholders see us ● Report what is material to us and the society... ● Must make a difference – not report just for the sake of reporting