Compliance and integrity
TenneT provides all parties with guaranteed, non-discriminatory access to our transmission grid.
Preventing potential fraud, bribery & corruption is part of our compliance & integrity system. Detecting potential breaches is part of all our internal audits and compliance & integrity investigations. Guidance in the form of corporate policies (i.e. Supplier Code of Conduct, Policy on Gifts & Hospitality, Whistleblowing Policy, Conflict of Interest Policy and Investigation Policy), effective communication and training sessions on compliance & integrity awareness help to protect TenneT, our employees and the society against economic and reputational harm.
As part of our compliance management system - besides the presence of regional Compliance & Integrity Officers in the Netherlands and in Germany - TenneT has set up a compliance & integrity committee that deals with compliance and integrity issues, comprising members from relevant functions (Risk Management & Internal Control, Internal Audit, Corporate Safety & Security, Human Resources Corporate, trusted counsellors and Compliance & Integrity officers). The objective of our Compliance & Integrity Committee is to share company information on compliance and integrity risks detected by the above mentioned officers and/or departments, raise awareness about these risks and remediate them by taking action on the detected risks. In addition, in the fourth quarter of 2018, TenneT has initiated a project to align the existing compliance management system with the ISO 19600, a best practice for international Compliance Management Systems
TenneT also has an external committee that deals with sexual harassment, a whistleblowing policy and a procedure for internal and external compliance and integrity issues. In the Netherlands, employees can report any concerns confidentially to either a trusted counsellor or a compliance & integrity officer, and if the concerns relate to sexual harassment or violence, they can report them to the committee dealing with sexual harassment. In Germany, employees can report these concerns to their compliance & integrity officer and the works council. In addition, employees as well as external parties can report compliance and integrity issues through an independent whistleblowing portal freely accessible on the internet.
To assure compliance with financial regulatory obligations (MiFID II, MAR), TenneT has finalised legal assessments, updated its publication and disclosure protocol and insider trading regulations, which prohibit any form of trading with inside information. Furthermore, the insider trading list has been updated and the Corporate Supplier Code of Conduct has been updated.
In 2018, eighteen compliance cases were reported. Two of these alleged violations were reported via the whistleblowing portal. Five cases resulted in compliance investigations. After initial assessment the other cases did not give rise to a compliance investigation
No fraud, bribery nor corruption breaches with material impact were identified by TenneT in 2018. Material impact is defined in our risk matrix by a severe breach that has a significant adverse effect on TenneT’s reputation and/or financial position.
With respect to compliance, in the Netherlands a renewed building decision is in place, which refers to the NEN 8700 with stricter requirements regarding some foundations of TenneT's existing pylons. TenneT is liaising with the authorities whether it is fair that these strict requirements, which seem to be there for buildings and bridges, should apply to TenneT's pylons. Furthermore, TenneT has the obligation to store strategic reserve capacity components to comply with art. 16, section 1q in order to protect the grid from external influences. Some of these components have been ordered, for others a tender procedure will be initiated in 2019 to ensure compliance.
Next to this, TenneT did not comply with the law requiring implicit auctions on the Dutch German Border due to the delay of the project called cross border intraday. After the Go-Live in June 2018 this non-compliance has been remedied, and TenneT is compliant now.