The Board’s work

Description of the Board’s work

The Board’s Rules of Procedure stipulate that seven regular meetings are to be held each year. In addition to the regular meetings, the Board is summoned to further meetings if the
need arises.

The Rules of Procedure stipulate, among other things, that the following items must be included on the agenda once a year:

• The Group’s strategic plan.
• The Group’s total risk exposure.
• Review of strategic personnel issues within the Group, including competence succession;
• Research and development activities within the Group.

In addition, at every meeting is reported:

• Important business events since the previous meeting;
• Monthly report;
• Report on the financing situation; and
• Safety matters concerning the Group’s nuclear power plants.

Investments are followed up and analysed by the Board three years after the Board’s decision to invest.

The Board also holds a number of board seminars each year. At these seminars the Board receives more detailed information about and discusses Vattenfall’s long-term development, strategy, competitive scenario and risk management.

The Board adhered to the plan in the Rules of Procedure in 2008. In all, the Board met 17 times, including the statutory meeting. According to the Rules of Procedure, at least one meeting every year is to be held at another location than the head offices. In 2008 a meeting was held in Cottbus, Germany. This meeting was combined with at visit to the open-cast mine in Jänschwalde and the plant in Schwarze Pumpe, including the pilot CCS plant.

Please follow the links for a compilation of the meetings and some of the more important items of business that were discussed.

Evaluation of the Board’s and CEO’s work

The Board evaluates its own work and the CEO’s work once a year through a systematic and structured process in the aim of developing the Board’s work forms and effectiveness. This evaluation is headed by the Chairman and is reported to the Board. The most recent evaluation was presented at the board meeting on 15 December 2008.

The Board’s risk management process

Operational risk management is regulated by Group instructions with special focus on risks associated with energy and commodity trading, and financial, insurance and credit risks. The Board decides on overall risk limits for the Group in all these areas. Operational risks are followed up and reported on a regular basis within the respective Business Groups. At each board meeting the Board is informed about the Group’s financial position, and any outstanding guarantees and risks are reported.

The Board also holds an annual risk management seminar, which conducts a more thorough review of the Group’s financial and operational risks.

For more detailed information about Vattenfall’s risks and risk management, see the annual report and especially Note 35 to the consolidated accounts.