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Modern Slavery Statement FY2020 SNOWY HYDRO MODERN SLAVERY STATEMENT 2020

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Modern Slavery Statement FY2020 SNOWY HYDRO MODERN SLAVERY STATEMENT 2020 Modern Slavery Statement FY2020 SNOWY HYDRO MODERN SLAVERY STATEMENT 2020 2 SNOWY HYDRO MODERN SLAVERY STATEMENT 2020 Introduction This Modern Slavery Statement is made pursuant each operating company within Snowy Hydro. to the Modern Slavery Act 2018 (Cth) (MSA). This This Statement was reviewed by the Executive Modern Slavery Statement is made on behalf Committee and approved by the Board of Snowy of Snowy Hydro Limited (ACN 090 574 431) and Hydro Limited, which has governance over all each of its wholly owned subsidiaries, including group companies. Red Energy Pty Limited, Lumo Energy Australia Pty Ltd and Direct Connect Australia Pty Ltd Snowy Hydro is a dynamic, integrated energy (collectively “Snowy Hydro”, “we”, “our”), for the business. Our role is to ensure energy security, financial year ending 30 June 2020. underpin the transition to renewables, and increase competition in energy markets. Our vision This Statement was prepared in consultation is to delight our customers with service, backed with management representatives on behalf of by our generation assets and retail businesses. Snowy Hydro has a strong corporate culture based on our company values: Safety Teamwork Ownership Agility Decency Courage Safety is always We help each We take pride We are We treat others We speak our number one other succeed in our work adaptable the way we’d up and act priority through and own our and embrace like to be for what’s support and choices change treated important trust In keeping with our core values, Snowy Hydro Snowy Hydro’s operations are almost entirely recognises the responsibility and opportunity in Australia, and undertaken by employees that we have to play a role in the eradication of on individual agreements or under enterprise modern slavery. We have always been committed agreements. to ensuring that human rights abuses play no part Snowy Hydro’s supply chain largely comprises well in our business or in any of our supply chains. known, long term suppliers, with no evidence of This Statement provides an overview of who modern slavery. Snowy Hydro undertakes limited Snowy Hydro is - our structure, operations, supply procurement in industries, regions, or for products chains and governance; an assessment of the risks and services with known risks of modern slavery. of modern slavery in our operations and supply We have identified three sectors/suppliers chains; the control measures we have implemented within our supply chain with a higher potential to manage those risks; and the effectiveness of inherent risk of modern slavery practices, and those controls. Snowy Hydro has a robust Risk we have undertaken additional due diligence Management Framework in place and has assessed and verification to confirm that there are no the risk of modern slavery under that Framework. actual or suspected modern slavery practices in 3 SNOWY HYDRO MODERN SLAVERY STATEMENT 2020 those parts of our supply chain and the controls businesses. We have taken additional targeted in place to manage this risk are effective. We measures to support the ongoing viability of continue to undertake ongoing verification these suppliers during this time. measures to ensure these control measures remain effective. Snowy Hydro will continue to review our modern slavery risk management practices against In addition to this sector specific due diligence, industry best practice and, if required, strengthen Snowy Hydro has standard controls in place those practices to ensure they remain effective in to control the risk of modern slavery practicies FY2021 and beyond. in our supply chain, as well as the additional controls of enhanced standard contract terms This statement was approved by the Board of and the implementation of a formal modern Snowy Hydro Limited on 10 March 2021. slavery training program. The COVID-19 pandemic in 2020 has had a disproportionate impact on a number of local regional suppliers which Snowy Hydro relies upon. This in turn has impacted on the livelihoods Paul Broad of the individuals who are involved in those Managing Director and CEO 4 SNOWY HYDRO MODERN SLAVERY STATEMENT 2020 Contents Introduction, including the process of consultation with all 3 operating companies within Snowy Hydro Snowy Hydro’s structure, operations, supply chains and governance 6 Snowy Hydro’s assessment of modern slavery risk in our operations 11 and supply chains Snowy Hydro’s actions to address modern slavery risk and 14 measuring the effectiveness of these actions Snowy Hydro’s Response to COVID-19 17 Looking ahead 18 5 SNOWY HYDRO MODERN SLAVERY STATEMENT 2020 Our structure, operations and supply chains Our Structure Snowy Hydro Limited is the ultimate holding water and releases it for the use of irrigators, company of the group, and is a producer, town water supplies and the environment. supplier, trader and retailer of energy in the National Electricity Market (NEM) and a leading Snowy Hydro has two wholly-owned energy provider of risk management financial hedge retail businesses, Red Energy Pty Limited and contracts. In addition, Snowy Hydro Limited is a Lumo Energy Australia Pty Ltd. Snowy Hydro also water manager operating under a stringent water has a wholly-owned moving services company, licence. Snowy Hydro captures, stores, diverts Direct Connect Australia Pty Ltd. 6 SNOWY HYDRO MODERN SLAVERY STATEMENT 2020 Our Operations 16 Power Stations and 1.1 million customers One-third of renewable 5,500MW total generation energy to the National Electricity Market Snowy Hydro has more than 5500 megawatts pumped-hydro power station about 800m (MW) of generating capacity across New South below the surface. Work on Snowy 2.0 has Wales, Victoria and South Australia including the been underway since early 2019, with road iconic 4100MW Snowy Mountains Hydro-electric upgrades, permanent bridges over waterways Scheme, the 300MW Valley Power gas-fired and earthworks to prepare for tunnelling all power station, the 320MW Laverton North gas- completed. Snowy 2.0 is a major regional fired power station in Victoria; the 667MW gas- infrastructure project bringing significant fired power station at Colongra in New South investment and thousands of jobs to the Wales and 136MW of diesel generation at Port Snowy Mountains. Stanvac and Angaston in South Australia. Snowy Hydro is the fourth largest retailer in Snowy Hydro has also established an offtake the National Electricity Market through two agreement with renewable developer Equis for award-winning retail energy companies - Red 100MW of large-scale solar generation at Tailem Energy and Lumo Energy. Our retail businesses Bend in South Australia, which commenced have more than one million customer accounts in April 2019. Additionally, Snowy Hydro has in the NEM including households, Small to procured 888MW of wind and solar derivative Medium Enterprises (SMEs) and Commercial and offtake agreements as part of its Renewable Industrial customers (C&I) across Victoria, New Energy Procurement Program. South Wales, the Australian Capital Territory, The Snowy 2.0 project, which is currently under South Australia and Queensland. Snowy Hydro construction, is a major expansion of the Snowy also owns Direct Connect, one of Australia’s Scheme, linking Tantangara and Talbingo largest moving services companies, moving reservoirs with tunnels and an underground renters and home-owners across the country. 7 SNOWY HYDRO MODERN SLAVERY STATEMENT 2020 Snowy Scheme Map SNOSNOWY-TUMUTTUMUT DEVELOOPMENTPMENT Snowy 2.0 UnderUndergroundound PPoweowerr StatStationion Snowywy 2.0 Projectoject PPoweowerr or PumpingPumping StatStationion UUndernderggrround Power StatioStationn SNOSNOWY-MURRAYAY Tunnelunnel DEVELOOPMENTPMENT River Water StStorageorage Kosciuosciuszkszkoo NationalNational ParkPark Snowy Hydrdroo LimitLimiteedd Water CaCattcchmenthment BouBoundarndary 8 SNOWY HYDRO MODERN SLAVERY STATEMENT 2020 Our Supply Chain In FY2020, Snowy Hydro directly engaged more The majority of Snowy than 2,500 suppliers. Excluding the Snowy 2.0 Hydro’s supply chain for project, approximately 98.8% of our total spend in our supply chain was with local suppliers, its existing generation assets followed by suppliers located in India (0.4%), the and retail business is within United States (0.4%) and New Zealand (0.3%). Australia, and generally Snowy Hydro has appointed a joint venture of world class, experienced, construction involves the engagement contractors to deliver our Snowy 2.0 project in Australia. 27% of the total spend in our supply of skilled labour for the chain was on the Snowy 2.0 Project. While provision of both goods and the suppliers engaged by Snowy Hydro for that Project are local and the work is being services, or the acquisition undertaken in the Snowy region, they have their of large items of equipment. own international supply chains. Snowy Hydro has taken the proactive steps outlined in this Statement to assure itself that modern slavery risks are being controlled within that supply chain. Our suppliers (excluding Snowy 2.0 project) 0.4% 0.4% United States India 98.8% local Australian suppliers 0.3% New Zealand • Other countries - 0.1% 9 SNOWY HYDRO MODERN SLAVERY STATEMENT 2020 Our Governance The Board of Snowy Hydro is responsible for the The Board has established an Audit and corporate governance of all companies within Compliance Committee. The role and Snowy Hydro, including the adoption of appropriate responsibilities of the Audit and Compliance policies and procedures, and is supported by Committee include overseeing the
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