Contact Energy Annual Limited Report 2019 WE’RE MAKING LIFE BETTER ANNUAL REPORT 2019 Contact is the human energy company with great ideas and smart solutions that make living easier for customers, now and in the future. This Annual Report is dated 12 August 2019 and is signed on behalf of the Board by: Robert McDonald Dame Therese Walsh Chair Chair, Audit Committee This report is printed on an environmentally responsible paper produced using Elemental Chlorine Free (ECF) FSC Certified pulp sourced from Sustainable & Legally Harvested Farmed Trees, and manufactured under the strict ISO14001 Environmental Management System. The inks used in printing this report have been manufactured from vegetable oils derived from renewable resources, and are biodegradable and mineral oil free. All liquid waste from the printing process has been collected, stored and subsequently disposed of through an accredited recycling company. CONTENTS This Year In Review ............................................................................................................................................................................... 5 Chair’s review .......................................................................................................................................................................................................................................................6 Chief Executive Officer’s review ..............................................................................................................................................................................................................7 Who We Are ............................................................................................................................................................................................. 9 Our Board ...............................................................................................................................................................................................................................................................10 Our Leadership Team .....................................................................................................................................................................................................................................11 Contact at a glance .........................................................................................................................................................................................................................................12 Ngā tikanga ............................................................................................................................................................................................................................................................16 Focusing on what matters most ...............................................................................................................................................................................................................17 Our reporting frameworks ............................................................................................................................................................................................................................18 Accessibility ............................................................................................................................................................................................ 19 Making access equitable ..............................................................................................................................................................................................................................20 Giving customers what they want ............................................................................................................................................................................................................21 Reliability .................................................................................................................................................................................................. 23 Focus on financial performance .............................................................................................................................................................................................................24 Ensuring reliable renewable energy .......................................................................................................................................................................................................25 Growing talent, inclusiveness and diversity ......................................................................................................................................................................................27 Focusing on health and safety ...................................................................................................................................................................................................................29 Environmental Sustainability............................................................................................................................................................. 31 Using water sustainably and respectfully ..........................................................................................................................................................................................32 Taking action on climate change ..............................................................................................................................................................................................................33 Protecting and enhancing biodiversity .................................................................................................................................................................................................35 Living and working in our local communities ....................................................................................................................................................................................37 Governance Matters ............................................................................................................................................................................. 39 Contact’s Board .................................................................................................................................................................................................................................................40 Code of conduct ................................................................................................................................................................................................................................................42 Risk management and assurance ..........................................................................................................................................................................................................42 Remuneration Report ........................................................................................................................................................................... 43 Directors’ remuneration ................................................................................................................................................................................................................................44 Chief Executive Officer remuneration .................................................................................................................................................................................................45 Employee remuneration ................................................................................................................................................................................................................................47 Other Disclosures .................................................................................................................................................................................. 49 Statutory .................................................................................................................................................................................................................................................................50 GRI index ................................................................................................................................................................................................................................................................59 Financial Statements ............................................................................................................................................................................ 63 Independent Auditor’s Report ........................................................................................................................................................... 87 Report on the audit of the consolidated financial statements ..............................................................................................................................................88 Corporate Directory ............................................................................................................................................................................