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External auditor The effectiveness, performance and independence of the external auditor is reviewed annually by the Audit Committee. The company’s external auditor is KPMG. Graeme Edwards has been the Audit Partner since 2019 and Laura Youdan has been the Assurance Partner since 2018. KPMG has provided the Board with the required independence declaration for the financial year ended 30 June 2020. The Audit Committee has determined that there are no matters that have affected the auditor’s independence. It is the Board’s policy that all non-audit services proposed to be undertaken by the external auditor must be pre- approved by the Audit Committee. The Audit Committee considered and gave its approval for the auditor to undertake certain non-audit related matters. KPMG was paid $1.3m for services in the financial year to 30 June 2020. Of this sum, $1.2m was for audit-related services and $0.1m was for non-audit related services. Further detail is provided on page 54 of this annual report. Risk management At Vector, we recognise that rigorous risk and opportunity management is essential for corporate stability and performance, and supports Vector in our pursuit to create a new energy future. To drive sustainable growth and ensure business resilience, we must anticipate risks to our operations while capitalising on opportunities as they arise. Vector’s enterprise risk management (ERM) framework provides a flexible and purpose-built approach to the application of risk management across Vector and is consistent with the Australian/New Zealand Risk Management Standard “AS/NZS ISO 31000:2018 Risk management – Principles and Guideline”. Our risk management processes and tools
of the internal audit programme to the extent that they are relevant to the financial statements. Ethical and responsible behaviour The Code of Conduct and Ethics outlines the responsibilities of Vector’s people and explains the standards of conduct and ethics. At Vector our vision and values are the foundation of our business; they reflect who we are and how we do business. Together as a team, as well as with our customers, partners and the wider community, each and every one of us has an important role to play in bringing our values to life. The purpose of our Code is to provide a framework for ethical decision making. However, the Code is not a substitute for good judgment. As Vector employees we strive to carry out our work in accordance with our values, and this Code should be used as a practical set of guiding principles to help us make decisions in our daily jobs. Diversity and inclusion The Board’s commitment to creating and maintaining both a diverse workforce and an inclusive workplace for all employees is reflected in its Diversity and Inclusion Policy. A Diversity Council, made up of senior management representatives, provides governance over the implementation of the Policy. The Diversity Council also provides guidance and direction in relation to the activity of the Diversity Committee, which consists of employee representatives from across the business. Vector has sought to establish measurable objectives for achieving diversity, including gender diversity, and its annual assessment of its diversity objectives for FY20 and the company’s progress towards achieving these objectives are set out on page 15 of this annual report.
are embedded within our business operations to drive consistent, effective and accountable decision-making. Consistent with the “Three Lines of Defence” principle, all Vector people are responsible for applying Vector’s ERM framework within their individual roles to proactively identify, analyse, escalate and treat risks. This risk mindset has been implemented through: ‒ Awareness of risk management’s value at operational, Executive and Board level; ‒ Relatable and easily applied risk management policies, processes and tools; ‒ Integration of specialised risk partners throughout the business; and ‒ Continuous training and education, both formal and informal. Vector regularly monitors the changing business landscape, assessing the influence of macrotrends on Vector’s operating environment. These perspectives, along with material risks from individual business unit risk profiles, support the identification of key group wide risks and opportunities. Vector is undertaking an external review of its ERM including its key and emerging risks to incorporate latest developments in risk management in the current environment. Internal audit Vector’s Group Internal Audit function provides independent and objective assurance on the effectiveness of governance, risk management and internal controls across all business operations. The team follows a co- sourced model, drawing on both in- house and external expertise, and has unrestricted access to all Vector staff, records and third parties. The team liaises closely with KPMG, as Vector’s external auditor, to share the outcomes
Gender statistics for Board and Executive team:
AS AT 30 JUNE 2020
AS AT 30 JUNE 2019
Position Directors
Female Male Diverse Female Male Diverse
2(29%)
5(71%) 5(56%)
3 (38%) 2 (29%)
5 (62%) 5 (71%)
Executive team
4(44%)
Governance report
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