Developing Metrics

Metrics will define how performance is measured relative to each indicator. As such, indicators and metrics are linked and together represent an approach to assess sustainable performance.

Some examples of the relationship between indicators and metrics are:

Environmental Indicator: Flouride in Vegetation

Metric: Concentration of F in vegetation (ruminant forage) at designated sample plots within a specified radius of the smelter 

Social Indicator: Alcoa/Landsvirkjun employee health and safety

Metric:  i) Number of reportable accidents on an annual basis during the operation of the smelter and powerstation. ii) Time lost due to injury per year as reported by Alcoa and Landsvirkjun. 

Economical Indicator: Financial Status of Municipalities

Metric: 1) Changes of municipal income tax in selected municipalities. ii) Municipal income/expenditure ratio.  

Because metrics define what is being measured, it was necessary to identify the appropriate geographic area for each metric. Three primary geographic areas were used in the social and economic metrics (and in some cases in the issues and indicators):

1. National – Iceland
2. East Iceland – Defined by election area and the geographic area used by Iceland Statistics until 2003. Includes 12 municipalities. East Iceland covers the local communities that will be most affected by the projects as well as most of the marginal communities that expect to experience some changes related to the projects.
3. Local Communities – Municipalities in East Iceland that are expected to be most influenced by the projects (municipalities vary by metric).
   

For the environmental indicators and metrics, the geographic areas vary according to the areas of effect. Metrics for measuring performance relative to indicators were selected after the indicators were established. Where possible, the metrics used similar measurement methods and units to those used in the baseline data collection to ensure comparability between baseline and future monitoring data.

Ongoing consultation with experts and collection/evaluation of baseline data could result in adjustment to these metrics, as appropriate.