Hydro’s adherence to the AA1000 AccountAbility Principles (2008) during 2013
AccountAbility obliges Hydro to involve stakeholders in identifying, understanding and
responding to sustainability issues and concerns, and to report, explain and be able to answer
stakeholders on matters as decisions, actions and performance.
The AccountAbility principles are the following:

An organization shall be inclusive, and include stakeholders in the development of an
accountable and strategic approach to sustainability.

An organization shall identify its material issues. These will influence decisions,
actions and performance of the organization and its stakeholders.

An organization shall respond to stakeholder issues that affect its sustainability
performance. Responsiveness is realized through decisions, actions and performance
as well as communication with stakeholders.
Hydro has decided to implement the three principles of AccountAbility in the
management and reporting of the company´s most important sustainability issues. If
implemented well, these principles will support Hydro in the realization of accountability.
Hydro faces a number of challenges in the implementation of the AA1000 principles
explained below.
Inclusivity:
Inclusivity is a commitment to be accountable to those Hydro has an impact on and who
have an impact on Hydro, and to enable their participation in identifying issues and
finding solutions. Accepting accountability does not mean that Hydro has to do
everything that a stakeholder requests, nor that Hydro is unable to make its own
decisions without the inclusion of stakeholders.
Hydro´s viability performance report describes the company´s strategies, controls,
responsibilities, risks and opportunities together with its sustainability objectives and targets
and also presents the company´s results from a financial, environmental and social
perspective. In addition, Hydro engages and reports in various ways to various stakeholders
(internal and external) on all areas in which Hydro operates. In most cases Hydro
fulfills the criteria specified in AA1000APS. However, the following points need more
attention:

Hydro will ensure that the stakeholder participation process and the grievance mechanisms
being developed are relevant, applied equally across the organization, on-going and active.
Materiality:
A material sustainability issue is an issue that will influence decisions, actions and
performance that affect either Hydro or its stakeholders. In order to make good decisions
both Hydro and its important stakeholders need to be aware of the issues that are
material. Hydro has worked with its sustainability impacts and performances for a long
time and these are discussed and reported on in the viability performance report and on
www.hydro.com
Hydro’s material sustainability issues are governed by The Hydro Way and Hydro’s Code of
Conduct and handled by steering documents, management systems, non-financial audits and
yearly reporting on non-financial information and data. Hydro believes that the
procedures for determining materiality satisfy all criteria specified in AA1000APS.

In relation to materiality, areas such as safety, climate change, supply chain management,
freedom of association & collective bargaining, compliance, anti-corruption, biodiversity and
traditional peoples’ areas will continue to be high on the agenda in the coming years.
Responsiveness:
Responsiveness means that Hydro shall respond to internal and external stakeholder issues
that affect the company´s viability performance.
Hydro receives different types of feedback from its stakeholders regarding the
sustainability agenda and performances. Hydro monitors the feedback and aims to
respond either in the viability performance report, on www.hydro.com or via other
communication channels. Hydro discusses and responds to concerns from owners,
employees, customers and other stakeholders. Responsiveness in relation to Hydro’s major
stakeholder groups is managed and prioritized via on-going and structured processes within
the company. Hydro holds the view that the responsiveness criteria specified in AA1000APS
are fulfilled, although not in all details:

In relation to responsiveness, Hydro will work to ensure timeliness in responses and
work further on implementation in large projects, new countries, new operations and
new issues. Hydro will stay committed to and have understanding for cultural
differences and that change takes time.