Creating a new energy future – a bold vision
Vector continues to review and mature its ERM to reflect its key and emerging risks. We engage external advisers to assist us to incorporate the latest developments in risk management and to reflect the current operating environment. The Board is responsible for ensuring that key business and financial risks are identified, and that appropriate controls and procedures are in place to effectively manage those risks. The Risk and Assurance Committee has overall responsibility for ensuring that the company’s risk management framework is appropriate and that it appropriately identifies, considers and manages risks. To support the identification of emerging risks and opportunities, Group Risk monitors the changing business landscape, assessing the influence of macro-economic trends on Vector’s operating environment. These perspectives, along with the material risks from the individual business unit risk profiles, inform the development of the Group Key Risk Profile which provides both the Board and Executive team with a consolidated view of: 1. the strategically focused risks which could have a significant impact on the long term value and sustainability of Vector’s business;
and safety performance. Page 14 of the annual report contains Vector’s performance in these areas, including its Total Recordable Injury Frequency Rate (TRIFR) and Lost Time Injury Frequency Rate (LTIFR). The Board has delegated day-to-day responsibility for the implementation of health and safety standards and practices to management. The Board is committed to providing effective resources and systems at all levels of the organisation to fulfil its commitment to employees, customers, shareholders and stakeholders. Internal audit Vector’s internal audit function is overseen by the Risk and Assurance Committee and 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 of the internal audit programme to the extent that they are relevant to the financial statements. Ethical and responsible behaviour Directors and employees are expected to act legally, ethically, responsibly and with integrity in a manner consistent with Vector’s policies, procedures and values. The Code of Conduct and Ethics covers a wide range of areas and provides guidance regarding personal integrity, business integrity, customers and society, people, and assets and information. It 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 judgement. 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. The procedure for advising the company of a suspected breach is set out in the Whistleblower Policy. People at Vector have a range of options to speak up if they notice something that’s not right, including raising a concern with a relevant manager. These options include in person, by phone, email, post, online form and all options can be done anonymously. A comprehensive set of policies has been put in place to assist directors, staff and contractors to act and make decisions in an ethical and responsible manner. The Board has implemented formal procedures to handle trading in Vector’s securities by directors and employees of Vector in the Insider Trading Policy, with approval from the Chair and the Company Secretary being required before trading can occur. The fundamental rule in the policy is that trading with insider information is prohibited at all times. The requirements of the policy are separate from, and in addition to, the legal prohibitions on insider trading in New Zealand. The policy provides that shares may not be traded at any time by any individual holding “material information” (as defined in the NZX Rules). A blackout period is imposed for all directors, senior officers and certain other people between the day before the end of the half-year and full-year balance dates and the day after the release to NZX of the result for that period.
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t he material operational risks facing Vector as part of its business as usual activities which require significant oversight and control; and emerging risks acknowledged as having the potential to increase in materiality over time.
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Health and Safety Vector is committed to ensuring that it has best-practice health and safety practices. Our commitments and requirements for health and safety are set out in the Health and Safety Policy. Vector will conduct its business activities in such a way as to protect the health and safety of all workers of Vector and its related companies, the public and visitors in its work environment. We are committed to continual and progressive improvement in its health
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