2018 Corporate responsibility policy

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 of importance to all our stakeholders.

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 acknowledges the complex inter-relationships between economic performance, community expectations and changing social and environmental aspirations, it is based on a deep understanding of the matters that are most material to our many stakeholders and to ourselves.

These matters form the basis of a comprehensive sustainability strategy and have been combined into five pillars: Commercial, People, Customer, Partnerships and Kaitiakitanga.

We believe that the consistent integration of sustainability will help us meet our growth objectives benefiting our shareholders, lenders, customers, employees, business partners and the communities in which we operate.

This policy and Mercury’s sustainability strategy are supported further by Company policies including:          

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Board and Nominations Committee Charters Risk Assurance and Audit Committee Charter People and Performance Committee Charter Stakeholder Communication Policy Market Disclosure Policy Trading in Company Securities Policy The Mercury Code Health & Safety Policy Remuneration Policy Diversity 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 integrated sustainability, including by building awareness among its employees and supporting appropriate decision-making processes in the business.

The policy and sustainability strategy 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 sustainability performance to shareholders and other stakeholders, through the Company’s Interim and Annual Reports, standalone reports, digital platforms and other social media as and when required.

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Sustainability Strategy

As an integral part of our focus on delivering sustainable growth and returns for our shareholders, Mercury commits to integrating corporate responsibility through principles relating to the five pillars of its sustainability strategy:

Corporate Responsibility Policy | Reviewed by Board of Directors | 20 August 2018 | Page 1 of 2

3.1        

Commercial

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.

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 appropriate.

We use resources responsibly in our day-to-day business operations, and aim to improve our environmental performance.

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.

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3.2    

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.

We work to retain, development and attract people with the right knowledge, skills and attitude to contribute to a highperformance culture.

We provide 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 inclusion and diversity and treat our employees with respect and consideration, maintaining a work environment free from discrimination or harassment.

3.3   

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Partnerships

We recognise that good relations and long-term commercial partnerships with stakeholders and business partners are fundamental to our sustained success.

We recognise that particular iwi are important stakeholders and partners who may have culturally diverse views. 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 matters, respecting the interests and views of others.

We maintain dialogue with regulators, consumer and industry organisations for the long-term benefit of customers and the country.

3.5 

Customers

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.

3.4 

People

Kaitiakitanga (Guardianship)

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 are committed to understanding, managing and mitigating the environmental impacts of our activities.

Wherever we operate, we seek to develop enduring relationships with the communities in which we operate based on trust, respect and understanding.

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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