Assurance

We carry out annual internal verification and external assurance to:

  • Ensure the content of our reporting on material CR issues and performance is balanced and accurate;
  • Test our awareness of and response to stakeholder issues;
  • Obtain an independent view of developments in our non-financial strategy, management and implementation to determine our ability to deliver corporate-level objectives;
  • Provide feedback to the Risk & Responsibility Committee on the CR governance and processes observed through the assurance activities.

Our new approach to verification and assurance

Since 2001/02, our assurance statements, whether in our Annual Report and Accounts, on this website or in our paper-based CR summary reports, have concentrated exclusively on external assurance. This  has taken the form of an annual broad examination of all CR-related issues for the Company.

This approach was revised in 2008/09,  and we have now adopted a rolling three year approach for external assurance; year one will be as before but years two and three now comprise a ‘deep dive’ on a specific CR issue as identified by the Executive and R&R committees. The revised approach also reflects improvements over time in our corporate audit and internal verification processes associated with CR issues, activities and reporting.

Together, these changes have the benefit of providing a more holistic assurance while reducing the overall cost.

Corporate Audit

We have developed a risk-based three-year rolling audit programme that focuses effort on areas of perceived greatest risk arising from the Company’s CR issues and activities. The plan comprises three audit types:

  • Annual reporting audit: A review of the scope and processes use to compile the CR content of public reporting media to ensure it fairly reflects the underlying CR risks and activity, and the testing on a sample basis of selected support material for various statements and data;
  • Rolling verification: The verification of data in underlying systems and processes that operate throughout the year and that are used to support statements used in public reporting; and,
  • Issues audits: Audits into how well National Grid is managing CR–related risks and processes.

During 2008/09, corporate audits have covered such areas as: process safety; waste reduction strategies and measurement of waste production and recycling; management of gas escapes;  air pollution control in generation; and, solid and hazardous waste management .

External assurance

As noted above, we have adopted  a rolling three year approach to external assurance; year one will be as before but years two and three comprise a ‘deep dive’ on a specific CR issue as identified by the Executive and Risk & Responsibility committees.

2009 is year two of our first three year cycle. This year’s deep dive, which is due to be completed in September,  is focussing on climate change and will inter alia consider:

  • The robustness and completeness of the climate change strategy;
  • The robustness of the long- and medium- term targets;
  • The governance of the climate change implementation activities;
  • The robustness and appropriateness of the key processes, procedures and activities put in place to implement the strategy;
  • The awareness and understanding at senior management levels of the climate change strategy.

Internal verification

We have formalised the approach used to develop and verify the CR content of the Annual Report and Accounts, this website and other CR reporitng media. This eight- step  procedure sets out specific approval obligations of content authors and owners. Internal verification by the content owners is the primary verification mechanism.

Assuring corporate responsibility information contained in the 'Responsibility' section of our website

In addition to the above, Our Annual Report and Accounts 2008/09 is used as the principle source for performance data set out on this site. This source data has been subject to statutory audit by the Company's Independent Auditors within the scope and to the extent set out in the 'Independent Auditors’ report to the Members of National Grid plc' contained in the Annual Report and Accounts 2008/09.