The NLF is responsible for holding and investing funds to meet the decommissioning liabilities of EDF Energy in respect of its 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 seckon 54(1) of the Modern Slavery Act, 2015.
Established by HM Government on 28 March 1996 as part of the privatisation arrangements for British Energy Group PLC (now EDFE), the NLF is wholly owned by The Nuclear Trust, established under Scottish law between EDFE, the Secretary of State and five trustees.
Three of the trustees are appointed by the Secretary of State and two by EDFE. The trustees are also executive directors of the Fund.
The board of the NLF meets around six times a year in England and Scotland.
The board receives quarterly reports from its fiduciary manager and meets them and its investment advisers monthly, as well as meeting with the Nuclear Decommissioning Authority to discuss EDFE applications for payment of qualifying liabilities. Finally meetings are held with UK Government Investments, the Department for Business, Energy and Industrial Strategy and the Office for Nuclear Regulation and others are held as appropriate.
The Investment Committee meets once a month to oversee the detailed administration of the Fund's investment portfolio and receives reports from fund managers and investment advisers. Both the Audit Committee and the Remuneration and Nomination Committee meet as required.
The NLF is answerable to the British taxpayer and public at large. Our main obligation is to demonstrate proper stewardship of the fund and to use any surplus towards repayment of the national debt.
We adhere to the six principles of good governance by the Independent Commission on Good Governance and Public Services:
Focus on the organisation’s purpose and outcomes for citizens and tax payers with respect to quality of the service and value for money.
Perform effectively, focusing on clearly defined functions and executive roles. Be clear about the relationships between Board members and the public.
Promote values for the whole organisation and demonstrating the values of good governance through behaviour.
Seek quality advice, take informed, transparent decisions and take decisive steps to effectively manage risk.
Ensure the organisation has the right people, skills, knowledge and experience to perform effectively. Evaluate performance regularly and strike a balance at board level between continuity and renewal.
Ensure full accountability to the public and stakeholders with an active, planned approach to dialogue.
Where appropriate, we are also guided by the Myners principles, a set of voluntary guidelines for pension fund trustees and the UK Corporate Governance Code (formerly the Combined Code).
The Independent Commission on Good Governance in Public Services (2004): The Good Governance Standard for Public Services, London: OPM and CIPFA.
The directors are responsible for monitoring investment policy and considering financial risk. The following agencies also contribute to management of the investment portfolio, custodial services (including safeguarding assets), accounting and company secretarial requirements:
NLF Registered OfficeCitypoint
65 Haymarket Terrace
Executive SecretaryMrs M Hope
55 Baker Street
BankersThe Bank of New York Mellon
One Canada Square
55 Baker Street
Global Fiduciary ManagerBlackRock Investment
Management (UK) Limited
12 Throgmorton Avenue
AuditorsGrant Thornton UK LLP
30 Finsbury Square
1 Exchange Crescent
CustodiansBank of New York Mellon
One Canada Square