The directors of the NLF are:-
Mr R Wohanka – Chairman
Mr R Armour
Mr N Harrison
Mr R Lowe
Dr P Neumann
The Company Secretary is Mrs J MacDonald
The board normally meets at least 8 times a year, with at least 2 of these meetings being held in Scotland. The board receives quarterly reports from its investment advisers and meets them regularly. In addition, the Investment Committee, a sub-committee of the board, meets monthly to oversee the detailed administration of the investment portfolio and receive reports from fund managers and the Fund’s investment advisers. There are also two further board sub-committees (the Renumeration and Nomination Committee, and Audit Committee) which meet on an ad hoc basis, as required. Frequent meetings are held with the Nuclear Decommissioning Authority (‘the NDA’) to discuss matters of mutual interest, including applications from EDFE for payment of qualifying liabilities. Meetings with UK Government Investments, the Office for Nuclear Regulation and others are held as necessary and appropriate.
The NLF has many similarities to a pension fund and is neither wholly private nor public in character. The NLF has no employees and all of the directors are executive rather than non-executive directors.
In determining its approach to appropriate corporate governance procedures for the NLF, the directors have been particularly mindful of whose interests the NLF needs to take into account. The NLF’s main stakeholders include the public at large and the taxpayer, given the Fund’s obligation to demonstrate proper stewardship of the monies in its care and ultimately to use any surplus towards repayment of the national debt.
Directors seek therefore to adhere to the six core principles of good governance of public bodies established by the Independent Commission on Good Governance and Public Services in its publication ‘Good Government Standards for Public Services’. These principles are:-
The directors also have regard to the Myners principles. These are a set of voluntary guidelines that pension fund trustees are expected to consider and to report upon on a ‘comply or explain’ basis. The principles are not of specific application to the Fund, but the directors do believe that they should be guided by the principles to the extent that they are appropriate to the circumstances of the NLF. The directors also have regard to the provisions of the Combined Code.
The directors are responsible for monitoring the prescribed investment policy of the NLF and, at board meetings, they consider, within the confines of this policy, matters relating to financial risk and objectives and the exposure of the Fund to such financial risk. The board has contractually delegated to external agencies, including investment managers, the management of the investment portfolio, the custodial services (which include the safeguarding of the assets), and the day–to–day accounting and company secretarial requirements.
The advisers to the Fund are:-
Mrs J MacDonald
55 Baker Street
55 Baker Street
Grant Thornton UK LLP
30 Finsbury Square
Shepherd and Wedderburn LLP
1 Exchange Crescent
The Bank of New York Mellon (London Branch)
One Canada Square
BlackRock Investment Management (UK) Limited
12 Throgmorton Avenue
LaSalle Investment Management
One Curzon Street
Bank of New York Mellon
One Canada Square
The NLF is responsible for holding and investing funds to meet the decommissioning liabilities of EDF Energy in respect of the seven AGR and one PWR nuclear power stations along with certain other waste management liabilities. The NLF does not supply goods or services and does not consider that there are any risks in relation to the goods and services which it procures given their nature but considers it good practice to undertake voluntarily to comply with and support the objectives of the Modern Slavery Act, 2015 in respect of supply chains. To this end, it requires all qualifying tendering organisations to demonstrate what steps they have taken to put the relevant policies in place to prevent slavery and human trafficking, what due diligence they carry out in relation to new suppliers and what risks are associated with their businesses.
This is the NLF’s annual slavery and human trafficking statement under section 54(1) of the Modern Slavery Act, 2015.