Corporate Responsibility Policy 1

Purpose

In conducting our business, we are guided by principles promoting ethical and responsible decision-making. Mercury’s Corporate Responsibility Policy reflects core values that are integral to our business and a vital foundation for our commercial sustainability and future growth. Mercury recognises that our operational and financial results, and success in creating long-term value for our shareholders, depend on maintaining confidence in: how the Company acts and conducts its business; our approach to harnessing natural resources and meeting environmental standards; our health and safety culture and practices; the service we provide for our customers; the employment experience we offer our people; the relationships we have with our business partners and the communities within which we operate; and broader measures of economic, environmental and social performance. Our approach to corporate responsibility acknowledges the complex inter-relationships between economic performance, community expectations and changing social and environmental aspirations. Mercury’s commitment begins with compliance with laws, regulations and consents, and acting in accordance with the general expectations of our stakeholders. This commitment extends to looking forward, to anticipate changing commercial circumstances and shifts in society’s views and expectations. We believe that the consistent application of these principles will help us meet our sustainable growth objectives – benefiting our shareholders, lenders, customers, employees, business partners and the communities in which we operate. The Corporate Responsibility Principles of this policy are supported further by Company policies including: > > > > > > > > >

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Board and Nominations Committee Charters Risk Assurance and Audit Committee Charter Human Resources Committee Charter Stakeholder Communication Policy Market Disclosure Policy Trading in Company Securities Policy Code of Ethics Health & Safety Policy Remuneration Policy

Governance and Responsibilities

The Company’s Board and individual directors are required to achieve the highest standards of corporate governance, acting at all times ethically and responsibly. The Board is responsible for administering this policy to ensure the Company adopts and implements the Corporate Responsibility Principles, including by building awareness among its employees and supporting appropriate decision-making processes in the business. The Principles, along with supporting policies are actively promoted throughout the business, embedded in communications and reinforced by the Chief Executive and management, both directly with the Company’s employees, and through commercial partnerships, business and stakeholder relationships. Mercury will report to shareholders and other stakeholders, through the Company’s Interim and Annual Reports, significant initiatives and outcomes during the period.

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Corporate Responsibility Principles

As an integral part of our focus on delivering sustainable growth and returns for our shareholders, Mercury makes the following commitments to Corporate Responsibility:

Corporate Responsibility Policy | Reviewed by Board of Directors | 2 November 2016 | Page 1 of 2

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We will operate our business in accordance with best practice and endeavour as a minimum to act at all times in compliance with laws, regulations, consents and contractual obligations. We assess the implications of our business decisions for our stakeholders and aim to balance social, environmental and economic impacts accordingly. We are honest, keep our promises and demonstrate our commitment to the Company’s values in all that we say and do.

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Employment Experience

We work to attract and retain people with the right knowledge, skills and attitude to contribute to a high-performance culture. We provide all employees with opportunities to enhance their skills and capabilities, enabling them to develop fulfilling careers and to maximise their contribution to our business. We value workforce diversity and treat our employees with respect and consideration, maintaining a work environment free from any form of discrimination or harassment. We are committed to excellence in the management of our work environment and the provision of health and safety systems for all employees, contractors and visitors.

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Community and Stakeholders

We recognise that good relations and long-term commercial partnerships with stakeholders and business partners are fundamental to our sustained success. Wherever we operate, we seek to develop enduring relationships with the communities we operate in based on trust, respect and understanding. We recognise that particular Maori entities are important stakeholders and partners who may have culturally different views from the Company’s. We respect those views and take them into account in our decision-making. We participate in public policy development and relevant forums and consultations on key industry issues, respecting the interests and views of others. We maintain dialogue with regulators, consumer and industry organisations to inform our decision-making.

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Customer Experience

We will aim to provide consistently high levels of customer experience. We value our relationship with customers and seek to continually improve our service experience for customers. As a provider of an essential service, we will as a minimum meet applicable industry standards around consumer safety and well-being.

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Respecting the Environment

We are committed to understanding, managing and mitigating the environmental impacts of our activities. We use resources responsibly in our day-to-day business operations, and aim to improve our environmental performance.

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Sustainable Development

We will harness natural resources in a sustainable and efficient manner to deliver growth and maximise value for our shareholders and business partners over the long-term. We will secure and develop reliable, economic, renewable fuel sources to support New Zealand's sustainable energy future. We understand the vital role electricity plays in our society and will look to diversify and expand our generation portfolio where this is supported by demand.

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Being Responsible

Procurement / Supply Chain Engagement

We manage the sourcing and awarding of contracts in a commercial, sustainable and non-discriminatory manner and treat suppliers fairly and with integrity. We recognise that in doing work on the Company’s behalf, our suppliers and business partners can be considered an extension of our business and therefore must be expected to adhere to acceptable business performance standards.

Policy review

The Board will review this policy as required but at least every two years.

Corporate Responsibility Policy | Reviewed by Board of Directors | 2 November 2016 | Page 2 of 2