Verification objectives
URS Verification Ltd (URSVL) has been
commissioned by National Grid Transco to
provide independent assurance of the ‘Operating
Responsibly’ elements of National Grid Transco’s
Annual Report and Accounts 2003/04, Annual
Review 2003/04, Operating Responsibly 2003/04
(herein referred to as ‘the reports’), and the
website (www.ngtgroup.com/responsibility).
This statement covers the reports, with a further
statement that covers the website to be
produced once the website has been updated.
Objectives of the URSVL assurance process were to:
- assess the robustness of corporate responsibility systems to enable delivery of Group performance;
- assess the robustness and adequateness of data collection systems and review data accuracy;
- review stakeholder engagement; and
- assess the content and coverage of the reports including the balance of issues.
Responsibilities of Directors and Verifiers
The information contained in the reports is the
sole responsibility of the Directors of National Grid
Transco. This verification statement represents
the independent opinion of URSVL in relation to
the reports. URSVL was not involved in the
development of this material or associated
corporate systems.
URSVL has carried out its services by checking
samples of information and documents that have
been made available to URSVL by National Grid
Transco. Accordingly, URSVL has not checked or
reviewed all of National Grid Transco’s information
and documents. The verification statement
provided herein by URSVL is not intended to be
used as advice or as the basis for any decisions,
including, without limitation, financial or
investment decisions.
Verification method
URSVL has performed this assurance process
following the principles of the assurance element
of AA1000. URSVL auditors also apply the general
principles of auditing and audit procedures as
contained within international standard, ISO
19011. We also consider ISO/IEC Guide 66 and
International Accreditation Forum (IAF) Guidance
to this document (IAF GD 6:2003), frameworks for
bodies operating independent assessment and
certification of management systems.
The assurance process included:
- interviews with key National Grid Transco personnel at both a Group level and within the most significant business operations in the UK and US;
- interviews with two of the non-regulated businesses, Gridcom UK and Fulcrum Connections;
- interviews with the main National Grid Transco personnel involved in key stakeholder engagement;
- review of the data collection systems at a Group level; and
- review of data collection systems and processes at a business level for selected safety (fatalities and lost time incidents) and environment (greenhouse gas) data.
Opinion
Corporate responsibility
In URSVL’s opinion, National Grid Transco has
continued to develop robust management
processes for corporate responsibility. Strong
commitment to delivering the Group’s policies
and performance targets was noted at all levels
within the organisation. However, continuing
development of systems is required which should
facilitate further sharing of best practice and
lessons learned. Further integration of culture
would also assist greater communication across
all levels within the Group.
URSVL is pleased to note that review and revision
of the corporate risk register has provided greater
clarity on the nature and scope of, and
responsibility for, the identified risks. Ongoing
reviews of performance metrics for the internal
reporting processes will assist in continuous
improvement in this area and enable broader
reporting of corporate responsibility performance
within the Group.
Stakeholder engagement is a core business
process at all levels within the Group and
interactions with appropriate stakeholder groups
are evident. However, there is no coherent
framework that underpins this process.
Development of more formal mechanisms across
the Group, in particular, for feedback from
stakeholder engagement, would assist National
Grid Transco in realising full benefits from the
process.
Content and coverage of the reports
In URSVL’s opinion, the information within the
reports is generally accurate and transparent.
However, National Grid Transco has omitted one
key performance challenge from its reports even
though the Group is addressing the issue.
Safety data collection systems and processes are
generally well established and robust, with the
resulting figures considered representative and
providing a fair reflection of Group performance.
Greenhouse gas data collection processes, in
general, are less well established across the
business. However, when aggregated at the
Group level, the reported greenhouse gas figures
are considered representative of Group
performance.
Areas for development of corporate responsibility
To build further on the progress made by National
Grid Transco in developing and integrating its
responsible business strategy and systems, the
following represent primary areas for
consideration:
- continue the current development and embedding of systems and procedures;
- continue to drive communication and cultural change within the Group; and
- develop a stakeholder strategy and ensure this feeds into the operating businesses as appropriate.
Suggestions for future reporting
Based on the information available in the reports,
the following represent areas for consideration in
future reporting:
- continue to communicate trends and targets for key performance indicators to increase openness of the Group’s performance expectations into the future; and
- include all key performance challenges faced by the Group to improve responsiveness to stakeholders’ expectations.
David Westwood
Director
For and on behalf of URS Verification Ltd
London
May 2004
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