Governance, risk management and compliance

Alinta Energy Pty Ltd and Renewable Energy Infrastructure Fund Pty Ltd (together referred to as the Alinta Energy Group, or Alinta Energy) are subsidiaries of Hong Kong-based Chow Tai Fook Enterprises Limited (CTFE) and Pioneer Sail Australia Pty Limited (ABN 91 617 846 385) (Pioneer Sail Australia).

CTFE is a family-owned business with operations in 27 countries globally. Pioneer Sail Australia also owns Latrobe Valley Power Holdings Pty Ltd (Latrobe Valley Power), which operates the Loy Yang B power station in Victoria. Alinta Energy has a capacity agreement to purchase a share of its Loy Yang B’s output, which is reflected in the contracted energy generation information in this report.

Alinta Energy and Latrobe Valley Power have separate boards, each chaired by independent non-executive directors. Loy Yang B prepares a separate sustainability report which is available from their website.

Our Board is made up of 9 members. We have 4 independent non-executive directors including the Chair, 4 non-executive directors, and our Managing Director and Chief Executive Officer (MD and CEO). The Board meets monthly (except December) and has primary responsibility for governance across our business. It approves our overall strategy,
monitors its implementation and oversees our operations. Day-to-day authority to run the business is delegated to our MD and CEO. 

The Board meets monthly and has primary responsibility for Alinta Energy’s governance. It approves our overall strategy, monitors its implementation and oversees our operations.

The Board has delegated authority to the MD and CEO to manage the day-to-day business and approves matters beyond management’s authority. 

As part of its oversight role, the Board monitors our sustainability performance and initiatives, including health, safety, climate change, environmental and community matters, including with assistance from the Environment, Sustainability and Community Committee, which is currently Chaired by Kathleen Bailey-Lord, with other members including Alison Chan, Robert Nicholson and stakeholder representative Adrian Fu. There are two other Board committees, the Audit and Risk Committee and Remuneration and Benefits Committee. 

Director Profiles


Independent Non-Executive Directors

 

Tony Howarth AO (Chair)

Independent non-executive director of Alinta Energy since March 2011 and Chair since December 2020

Chair of BWP Trust and the St John of God Foundation

Non-executive director of Coventry Group Limited and Viburnum Funds Pty Ltd

Previous non-executive director of Wesfarmers and former President of the International, West Australian and Australian Chambers of Commerce and Industry, Senator of University of WA

Tony is a Life Fellow of the Australian Institute of Company Directors and the Financial Services Institute of Australasia.

He holds an Honorary Doctorate of Laws from the University of WA and is an Adjunct Professor of the University’s Business School.

Kathleen Bailey-Lord

Independent non-executive director of Alinta Energy since April 2021

Senior executive experience spanning the financial services, technology and professional services sectors

Chair of Janison and a non-executive director of Datacom and SVHA Group.

 

Kathleen holds a Bachelor of Arts (Hons) in political science and history from the University of Melbourne, and has completed executive education programs at Harvard and the Macquarie Graduate School of Management

 

She is a Fellow of the Australian Institute of Company Directors, anexternal memberof theAustralian Partnership Council of Norton Rose Fulbright Australia, a member of Chief Executive Women, and has undertaken the non-executive director program in sustainability governance at the Cambridge Institute for Sustainability Leadership.

Robert Nicholson

Independent non-executive director of Alinta Energy since May 2021

Over 30 years of experience in commercial law, including the energy, infrastructure, resources and forestry industries

Non-executive director of Port of Melbourne, Electro Optic Systems Holdings, Baker Heart and Diabetes Institute, Landcare Australia, and European Australian Business Council

Senior advisor with Herbert Smith Freehills after serving as a partner for 28 years, and a former Chair and Board member of the firm

Robert holds a Bachelor of Science, Bachelor of Laws and Master of Laws from Monash University and an MBA from University of Melbourne and is a Graduate of the Australian Institute of Company Directors.

 

Dean Jenkins

Independent Non-executive Director of Alinta Energy since March 2023

Independent Non-Executive Director of Adbri (ABC:ASX)

Dean holds a Bachelor of Engineering (Aerospace, Hons) from RMIT and is a member of the Australian Institute of Company Directors.

Dean has over 20 years’ experience in the transport, manufacturing, engineering, energy and resources sectors both domestically and overseas.

Dean has held senior executive and leadership positions including Managing Director and Chief Executive Officer of MaxiPARTS Limited, Chief Operating Officer and Executive Director of Weir Group PLC, CEO UGL Rail and Head of Engineering and Supply Chain and Qantas.

His commercial management capability, experience in strategy and asset intensive markets brings valuable experience to his directorship.


Non-Executive Directors
 

Dr Henry Cheng

Non-executive director of Alinta Energy since April 2017

Director of Chow Tai Fook Enterprises Limited

Chairman and executive director of New World Development Company Limited (HK stock code: 0017), Chow Tai Fook Jewellery Group Limited (HK stock code: 1929) and NWS Holdings Limited (HK stock code: 0659)

Chairman and non-executive director of FSE Lifestyle Services Limited (HK stock code: 0331) and i-CABLE Communications Limited (HK stock code: 1097)

Executive vice chairman of Silk Road Chamber of International Commerce

Chairman of the Advisory Council for The Better Hong Kong Foundation

Awarded the Grand Bauhinia Medal by the Government of the Hong Kong Special Administrative Region

Dr Cheng holds an MBA from the University of Western Ontario, an honorary DBA from Johnson and Wales University, and an honorary LLD from the University of Western Ontario

Conrad Cheng

Non-executive director of Alinta Energy since May 2018

Non-executive director and non-executive chair of Greenheart Group Limited (HK stock code: 0094)

Director of New World China Land Limited (a listed public company in Hong Kong until its delisting on 4 August 2016)

Vice-chair of Green Council (a non-profit, non-partisan environmental association and certification body of Hong Kong)

Conrad holds a Bachelor of Arts in Statistics from the University of Toronto

Patrick Tsang

Non-executive director of Alinta Energy since April 2017

Chief Executive Officer and a director of Chow Tai Fook Enterprises Limited

Vice-chairman and executive director of i-CABLE Communications Limited (HK stock code: 1097)

Executive director of UMP Healthcare Holdings Limited (HK stock code: 0722) and Melbourne Enterprises Limited (HK stock code: 0158)

Governor of Chow Tai Fook Charity Foundation

Over 20 years of international capital markets experience, including as Managing Director and Head of Asia Fixed Income Capital Markets at Deutsche Bank AG, Hong Kong Branch prior to joining CTFE

Awarded the Bronze Bauhinia Star by the Government of the Hong Kong Special Administrative Region

Patrick holds a Bachelor of Arts in Economics from Columbia University

Alison Chan

Non-executive director of Alinta Energy since April 2021

Chief Operating Officer of Chow Tai Fook Enterprises Limited

Over 20 years of international investment banking and wealth management experience at international banks, including Lehman Brothers, UBS, Bank of America Merrill Lynch and as Head of Greater China Ultra High Net Worth at Standard Chartered Bank prior to joining CTFE

Alison holds a Bachelor of Science degree from the London School of Economics at London University


Executive Leadership Team

Alinta Energy’s organisational structure promotes efficient decision-making supported by individual accountability and effective oversight. 

Our executive leadership team consists of the three operating pillars of power generation and development; trading and portfolio management; and retail markets; and the four foundation functions of finance, information technology, corporate services and people and culture. 

Each member of the team reports to the MD and CEO. Our executive leadership team and their areas of responsibility are shown below:

Managing Director & CEO

Jeff Dimery

  • CEO of Alinta Energy since 2011 and Managing Director since 2017 
  • Board member of the Australian Energy Council 
  • Previous energy industry directorships include the National Generators Forum, the Australian Wind Energy Association, the Renewable Energy Generators of Australia, the Clean Energy Council and the Australian Energy Market Commission’s Reliability Panel 
  • 15 years at AGL prior to joining Alinta Energy 
  • Jeff holds a Bachelor of Business from RMIT University and has completed the Executive Learning Program at IMD Business School in Switzerland.

Executive Director - Power Generation and Development

Ken Woolley

  • Power station asset management and operations
  • Power development and construction
  • Pathway to net zero – clean energy technologies

Executive Director Trading and Portfolio Management

Chris Campbell

  • National spot trading
  • NEM and WEM gas and electricity trading in wholesale markets
  • Energy derivatives, options and commodities
  • Dispatch of power stations
  • Fuel procurement and transport
  • Energy pricing
  • Systems and analytics
  • Environmental products trading
  • Commercial and industrial sales and marketing

Executive Director – Retail Markets

Amanda Hagan

  • East coast retail sales
  • West coast retail sales
  • Small and medium enterprise sales
  • Brand and marketing
  • Customer operations
  • Pathway to net zero – customer climate ambition products
  • National retail compliance

Chief Financial Officer

Vince Nicoletti

  • Group finance
  • Treasury
  • Taxation
  • Risk management
  • Strategy and planning
  • Payroll
  • Strategic projects
  • Capital markets

Chief Information Officer (interim)

Nick Smith

  • Cybersecurity and IT risk management
  • Solutions delivery
  • Enterprise architecture
  • IT service delivery
  • Platforms and operations
  • Data and analytics
  • Strategic projects (transformation)

Executive Director – Corporate Services

Daniel McClelland

  • Safety and sustainability
  • Legal, governance and secretariat
  • Regulatory and government affairs
  • Enterprise compliance
  • Community development
  • Communications and media relations
  • Insurance
  • Pathway to net zero – interim emissions reduction targets

Executive Director – People and Culture

Simone Carroll

  • Culture and engagement
  • Learning and development
  • Leadership programs
  • Recruitment
  • Talent management and succession planning
  • Performance management
  • Reward and recognition
  • Policies and procedures
  • Employee relations
  • Organisation design
 

 

Our Board-approved enterprise-level risk and compliance management systems follow a holistic, systemic approach to identify and assess risks, design and implement controls and monitor their effectiveness. Development of these systems has been informed by international risk and compliance management standards.

Alinta Energy uses a 3 Lines of Defence model to structural implement risk management and assurance, with Line 1 being risk and control owners, Line 2 being risk management functions and Line 3 being internal audit.

We use an overarching Governance, Risk and Compliance (GRC) platform, which is embedded operationally across the business.

Risks to our IT systems particularly relate to cybersecurity, following several major data security breaches in Australia and elevated threat levels around the world.

Enterprise Risk Management

Alinta Energy’s enterprise risk management framework (ERMF) has been developed in accordance with standards AS/NZS ISO 31000 and the Committee of Sponsoring Organizations’ Enterprise Risk Management – Integrated Framework (COSO II). It governs how we identify, analyse, evaluate, address, monitor and communicate risks to support our risk culture. Risks are classified as financial, strategic, operational or reputational and are assessed against consequence and likelihood rating criteria.

Business units prepare risk reports which include current, new and emerging risks and the progress of mitigating actions. This happens twice a year and follows a bottom-up process to support accountability for risk. It incorporates a divisional risk register review which includes all business leaders. Divisional risks are reported to the Board and its Audit and Risk Committee.

Enterprise compliance

Our enterprise compliance management framework (ECMF) complements the ERMF and aligns with the new international compliance standard: ISO 37301 Compliance Management Systems.

The Board-approved ECMF standardises compliance management across Alinta Energy and serves to:

  • Define the key attributes and objectives of our compliance culture.
  • Describe the roles and responsibilities to manage compliance.
  • Outline the process for ongoing monitoring, reporting and review.

Alinta Energy’s enterprise compliance reporting framework is underpinned by compliance strands, which are defined compliance groupings that reflect key compliance risk exposures. Each compliance strand has an accountability structure, owned by the relevant executive leadership team member.

These compliance strands include sustainability compliance and reporting, health and safety, environment, modern slavery, retail markets, regulatory compliance, power generation and asset management, information security, and privacy and information management. These compliance strands may change over time to reflect changes in our operations or the regulatory and compliance landscape.

A compliance obligations register captures obligations and critical controls for each strand, to maintain visibility at executive and Board level over controls and any changes to the compliance regime. This aligns with the new international standard for compliance management systems.

We use a comprehensive Governance, Risk and Compliance (GRC) platform called ServiceNow to operationalise the management of our obligations and risks and provide enterprise compliance reports to the Board’s Audit and Risk Committee for oversight and monitoring.

Information technology

Alinta Energy’s IT function plays a pivotal role in serving external and internal customers, underpinning regulatory compliance, and developing new solutions to support growth and innovation.

Our digitisation program helps our people work more efficiently. It includes providing new tools, improving existing systems, and automating key business processes across the organisation. In addition to the enCORE and ServiceNow platforms we use for customer management and enterprise risk and compliance management respectively, some of our other initiatives are:

  • Wholesale markets and power generation – We have mature digital practices in the power generation and wholesale markets areas of the business. This has delivered reliable systems that support operational efficiency and continue to effectively meet our compliance requirements.
  • Future planning – We have enhanced our software development and IT operations culture and invested further in cloud capabilities. This improves our agility while maintaining stable systems and supporting scalability.
  • Robotics – We have invested in technologies like robotic process automation which reduce our overall costs across the value chain.

Internal audit

Alinta Energy’s internal audit function provides independent assurance by assessing the effectiveness of our governance, risk management and controls. Internal audit operates with a co-sourced structure, reporting to the Board’s Audit and Risk Committee, with a functional reporting line to the Executive Director – Corporate Services. An independent consultancy conducts our internal audits.

An annual internal audit plan is approved by the Committee, providing coverage of business activities over time and based on their risk profile. Reports are presented to senior management and the Committee, including recommendations for actions to address any weaknesses and enhance our control environment. The Committee oversees management’s progress to complete agreed actions on a timely basis.

Legislation and policy

Alinta Energy is subject to extensive legislation relating to health and safety, competition, environmental compliance, retail practices (including customer communications, rights and protections), renewable energy, energy efficiency, energy trading and tariff setting.

Our whole business is actively involved in complying with these requirements, supported by specialists from our risk management, legal, regulatory, safety, compliance and sustainability teams. Our systems and controls support and monitor our ongoing compliance.

We make investments that streamline our processes, develop our people, and allow us to respond to risks before they result in an incident or cause harm. This is reflected in an uplift in how we conduct business, our people’s understanding that compliance is non-negotiable, and our shared responsibility to meet our ongoing obligations.

We actively monitor legislation, government policy and regulatory expectations to consider the impact of changes and new requirements and make plans to address them. Regulatory developments are monitored by our specialist regulatory team and other functions and business units through third-party alert services, regulatory and departmental websites, industry associations, industry working groups and ongoing stakeholder engagement.

Security of critical infrastructure

The Security Legislation Amendment (Critical Infrastructure) Act 2021 (SLACI Act) and the Security Legislation Amendment (Critical Infrastructure Protection) Act 2022 (SLACIP Act) apply to Alinta Energy as our power generation facilities include critical electricity assets.

We have heightened our cybersecurity maturity at our power generation sites including continuous monitoring for vulnerabilities and automation of critical IT and operational technology practices.

Privacy

Our customers trust us with sensitive personal and commercial information. We take our responsibility to protect this very seriously. Our business has stringent measures in place to comply with the Privacy Act 1988 and the Australian Privacy Principles.

Our information and compliance framework is the foundation of our approach to privacy. This is supported by our privacy policy, credit policy and cybersecurity policy. We have an information classification and handling standard and a privacy impact assessment process that set out how we manage information and privacy risks and protect confidential data. An internal management committee specifically oversees how we manage privacy and the effectiveness of controls. All employees receive mandatory privacy training as part of their induction, and annual refresher training.

Foreign Investment Review Board

Alinta Energy must meet conditions set during 2017 by the Foreign Investment Review Board (FIRB conditions) when the business was acquired by Hong Kong based Chow Tai Fook Enterprises Limited.

The FIRB conditions relate to a range of governance and operational matters. They include the composition of our Board, data security and protecting information about our network and operation technology. This affects how we manage data, and how we operate and maintain our systems and infrastructure.

Alinta Energy’s compliance with the FIRB conditions is independently audited annually and reported to Commonwealth Treasury.

Ethical behaviour

Code of Conduct

Our Code of Conduct provides the framework for our people to behave ethically and is the basis of our policies and procedures.

All employees must complete online training on the Code of Conduct every two years, including a competency test to check they understand their obligations. New employees complete this training as part of our induction process. The Code of Conduct is available to all employees on the intranet.

Anti-corruption

Alinta Energy has zero tolerance for bribery and corruption. We expect all our people to act with honesty and integrity across all aspects of their work and adhere to our high ethical standards.

This is reflected in our values and incorporated in our Code of Conduct and our Anti-Corruption and Bribery Policy, which are available to all employees. Behaving in accordance with our values is part of our employee review process and people who do not meet this core expectation face disciplinary action, which can include dismissal.

Alinta Energy did not have any suspected or confirmed incidents of corruption or any legal cases regarding corruption brought against the business or our employees during FY23.

Whistleblowing

Alinta Energy is committed to ethical behaviour at all levels of our business.

Our people are strongly encouraged to immediately report any illegal or inappropriate acts to their manager, a member of the executive leadership team, or to an independent whistleblower hotline. This includes actual or suspected theft, fraud, dishonesty, harassment, unethical behaviour and workplace safety hazards. Investigations into any reports are led by the General Counsel and the Chief Risk Officer.

Our reporting channels enable people to raise concerns without fear of harassment or discrimination. This includes an independent whistleblower notification service operated by Deloitte.

Modern slavery

We are committed to fair business practices and protecting human rights. Alinta Energy strongly opposes modern slavery in all its forms including child labour, forced labour, involuntary labour and people trafficking. We expect everybody we work with, internally and at every level of our supply chain, to do the same.

Alinta Energy is a reporting entity under the Modern Slavery Act (Cth) 2018 and reports jointly with our parent entity, Pioneer Sail Holdings, and its other Australian subsidiaries. Our Modern Slavery Statement explains how we address modern slavery risks across our supply chain, including the governance framework, due diligence, training and awareness campaigns and resources we have implemented.

Insurance

Alinta Energy has a comprehensive insurance program that includes policies for property damage, business interruption, workers compensation, combined liability, directors and officers liability, corporate travel, motor vehicle, marine transit and group journey injury cover. We maintain insurance policy deductibles and limits at levels we believe are adequate, reasonable, consistent with our risk profile and aligned with industry practice.

Business continuity

We have planned carefully to eliminate or minimise interruptions from events that could affect our ability to operate. These might include accidents, natural disasters or malicious attacks targeting our business or other events in the physical or digital environments where we operate.

Our facilities all have site-specific emergency response plans which include details such as contact numbers, how to raise the alarm, how to notify authorities, initial response procedures, roles and responsibilities, emergency equipment, communication protocols, drills and training and post incident recovery. We also have a corporate crisis management plan for emergency situations.

Three key issues that could impact our business are considered below, along with our approach to minimise their impact and strengthen our risk management practices.

  • Supply security and energy prices - Our capacity agreement with Loy Yang B power station and our long-term gas supply agreements on the west coast have significantly reduced our exposure to the recent sharp increases in international coal and gas prices.
  • Cybersecurity - Cybersecurity is a growing global concern and organisations with significant infrastructure and large customer databases are primary targets. New legislation to increase the security of critical infrastructure has been introduced during the year. There are also upcoming energy sector reforms focused on consumer data rights. Alinta Energy is investing significantly in leading edge capabilities to protect our physical and digital assets and building ongoing cyber resilience. We are committed to improving our cybersecurity practices through a dedicated professional team and collaboration with industry partners. We apply the Australian Energy Market Operator’s (AEMO) voluntary assessment program and the Australian Energy Sector Cyber Security Framework. This includes regularly assessing ourselves against the framework and implementing improvements, partnering closely with AEMO. We continuously assure customer information throughout its lifecycle and delete it when it is no longer required.
  • Climate-related risks - We recognise that climate-related risks pose a threat to business continuity. This includes physical risks posed by acute and chronic changes to weather patterns and natural disasters such as bushfires, cyclones, and increasing temperatures; and transition risks associated with the shift to a lower-carbon economy such as insurability, access to finance and changes to the legal landscape. We have recently prepared our first TCFD report covering FY23.

Employment arrangements

Labour management relations

Our employee relations reflect our values of People Matter and Respect & Integrity. This includes acting fairly and supporting equal opportunity, diversity and inclusion. We base appointment and promotion decisions on merit and have processes to challenge and reduce unconscious bias. Alinta Energy’s employment practices are governed by legislation, regulations and industrial instruments. We comply with minimum notice periods regarding operational changes in accordance with Australian and New Zealand legislation.

Freedom of association and enterprise bargaining

Our employees and contractors have the right to associate freely and join industrial associations such as trade unions. Employees also have the right to engage in enterprise bargaining, where they and their representative (such as a union) negotiate with us for an enterprise agreement. 

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