The Board’s work

Description of the Board’s work

The Board’s Rules of Procedure stipulate that six to ten 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 are to be included on the agenda once a year:

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

In addition, at every regular meeting a report is presented on important business events since the previous meeting as well as on the financing situation. 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 met 14 times in 2010, including the statutory meeting. A quorum existed at all meetings.

Please follow the links for a compilation of the Board’s composition and presence at the meetings during 2010.

Board decision on new strategic direction

On 24 August and 20 September 2010, the Board decided on a new strategic direction, organisation and business model for the Vattenfall Group. These decisions were prompted by, among other things, the amendment to the Articles of Association that was adopted by the Extraordinary General Meeting on 23 August.

The new strategic direction is intended to increase focus on profitability and value creation as well as focus on the core markets (Germany, Sweden and the Netherlands), on three main products (electricity, heat and gas), lower CO₂ exposure, and growth in low CO₂-emitting electricity generation and in gas.Vattenfall thereby aims to be a leader in developing environmental sustainable energy generation. The decision entails that Vattenfall will continue to be an integrated European company with a diversified energy portfolio. The geographic focus shall be on Sweden, Germany and the Netherlands. Vattenfall also decided to introduce a business-led organisational structure.  

The Board’s risk management process

Vattenfall’s Chief Risk Officer (CRO) is responsible for organisation of risk management within the Group. The CRO is responsible for this organisation at the Group level and is responsible for informing the Board about his/her observations regarding the Group’s risks.  

The Board sets the overall risk mandates for the Group in the areas of energy and commodity trading, as well as for financial, insurance and credit risks. At each meeting, the Board receives information about the Group’s financial position, including a report on outstanding guarantees and risks. The Board also holds an annual risk management seminar at which a more in-depth review is made of the Group’s financial and operational risks.

For a more detailed description of Vattenfall’s risks and risk management, see the
Annual report 2010 (PDF 7 MB)

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 14-15 December 2010.