Internal governance

Here, you will find information on internal governance, which in Vattenfall's view is crucial to maintaining a successful and sustainable organisation.

Guiding business ethics

Vattenfall's Code of Conduct states, among others, 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 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). Both of these bodies conduct preparatory drafting work on matters that are to be decided by the Board of Directors.

The Executive Group Management

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 for the Group, such as certain investments.

The Vattenfall Risk Committee

The VRC makes decisions pertaining to the risk mandate and credit limits, among other things, and exercises oversight of the risk management framework.

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 is documented in binding governance documents consisting of policies, instructions and process documents on three different levels: Company level, function level and business level. Certain central documents are approved by the Board of Directors of Vattenfall AB.

The VMS is an integrated management system that applies for 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. Special routines are in place to ensure adherence to the management system also by subsidiaries.

Organisation

Vattenfall's business is divided into 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.
  • Staff functions, organised at Corporate, Regional and Business unit level.
  • Service operations, organised at Regional level or below.

Internal control over the financial reporting

The Corporate Governance Report (PDF 423 kB) describes the most important elements in Vattenfall's system of internal control and risk management in connection with the financial reporting,

Last updated: 2014-07-16 13:45