Guiding business ethics
In 2012, Vattenfall's Board adopted a new Code of Conduct. Among others, the Code of Conduct states Vattenfall's core values – safety, performance and cooperation. It also provides the employees with the opportunity to report incidents through a whistleblowing function staffed by locally appointed external ombudsmen.
CEO and Executive Group Management
The President of Vattenfall AB, who is also CEO of the Vattenfall Group, is responsible for the day-to-day administration of the company in accordance with the Swedish Companies Act.
The CEO has appointed decision-making bodies for governance of the Group and makes decisions independently or with the support of these decision-making bodies. The most important of these decision-making bodies are the Executive Group Management (EGM) and the Vattenfall Risk Committee (VRC).
The EGM focuses on the Group's overall direction and decides – within the framework of the CEO's mandate from the Board of Directors – on matters of importance to the Group, such as certain investments.
The VRC makes decisions pertaining to the risk mandate and credit limits, among other things, and exercises oversight of the risk management framework. Both of these bodies conduct preparatory drafting work on matters that are to be decided by the Board of Directors.
Read more about the members of the Executive Group Management.
The Vattenfall Management System (VMS)
The VMS is the framework that ensures that Vattenfall's governance adheres to formal requirements as well as to requirements made by the Board, the CEO, the business operations and the staff functions. The VMS binds governance documents consisting of policies, instructions and process documents on three different levels: company level, function level and business level.
The VMS is an integrated management system that applies to the entire Vattenfall Group, along with the limitations that may arise from legal requirements, such as regarding the unbundling of the electricity distribution business. Vattenfall's Environmental Management System is integrated in the VMS.
As from 1 January 2014, Vattenfall consists of two Regions, Nordic and Continental/UK, and a corporate centre comprising of Staff functions and a cross-regional unit, Asset Optimisation and Trading (AOT).
There are three organisational levels – Corporate, Regional and Business unit. The operations are divided into three main categories:
- Business is conducted in Business units, organised in the two regions and in AOT. Business units may be split into several Operating units.
- Staff functions organised at Corporate, Regional and Business unit level.
- Service operations structured in Business Support functions and Shared Service Centres, both organised at Regional level or below.
The breakdown into Business units is shown in the organisation chart. Every unit is defined in the VMS, especially with respect to area of responsibility, decision-making authority and risk mandate.
Internal control over the financial reporting
The Corporate Governance Report 2012 describes the most important elements in Vattenfall's system of internal control and risk management in connection with financial reporting.