The Board of Directors has formed an Audit & Risk Committee.
Dieter Wemmer (Chair), Jørgen Kildahl, and Peter Korsholm are the members of the Audit & Risk Committee.
The committee assists the Board of Directors in overseeing the financial and ESG reporting process (including key accounting estimates and judgements), liquidity and capital structure development, financial and business-related risks, compliance with statutory and other requirements from public authorities, internal controls, IT security in operational and administrative areas as well as cybersecurity.
Moreover, the committee approves the framework governing the work of the company’s external and internal auditors (including limits for non-audit services), evaluates the external auditors’ independence and qualifications, and monitors the company’s whistle-blower scheme.
In 2022, the committee reviewed the continued material impact from the volatile energy prices on the risk management procedures and the financial statement, the current and future hedging framework, the financial impact of the acquisition of Ostwind, impairment on our property, plant, and equipment, as well as the continued implementation of the EU taxonomy reporting framework. Furthermore, the committee continued to assess the claim made by the Danish Tax Agency requiring further Danish taxation of certain of our British offshore wind farms, and lastly, it reviewed the progress in IT security.
Our Internal Audit function reports to the Audit & Risk Committee and is independent of our administrative management structures. Internal Audit enhances and protects the organisational value by providing risk-based and objective assurance, advice, and insight. The focus for Internal Audit is to audit and advise on our core processes, governance, risk management, control processes, and IT security.
The Chair of the Audit & Risk Committee is responsible for managing our whistle-blower scheme. Internal Audit receives and handles any reports submitted. Our employees and other associates may report serious offences, such as cases of bribery, fraud, and other inappropriate or illegal conduct, to our whistle-blower scheme or through our management system. In 2022, eight substantiated cases of inappropriate or unlawful behaviour were reported through our whistle-blower scheme. Six cases related to the Good Business Conduct policy violations, while one case concerned IT security and one case concerned the workplace environment. None of the reported cases were critical to our business, nor caused adjustments to our financial results. One case required a police report. Whistle-blower cases are taken very seriously, and we continuously enhance the awareness of good business conduct through education and awareness campaigns to minimise future similar cases.
Eight meetings have been held in the committee in 2022.
You can download the terms of reference of the Audit & Risk Committee via the link above.