Business Conduct

National Grid's reputation for lawful and responsible business behaviour is of paramount importance:  we believe this is one of our greatest assets, particularly as we seek to expand and grow our business.

In March 2007, we published our Standards of Ethical Business Conduct that replaced our UK Code of Business Conduct, and in December 2007, following the completion of the KeySpan acquisition, these Standards also replaced the US Standards of Conduct, thereby providing a single set of standards throughout National Grid. The new standards provide a common set of practical guidelines to help ensure that our behaviours are lawful, we comply with our policies and licences and we follow the values set out in our Framework for Responsible Business and our core values.

In 2007/08, there were 11.6 substantiated breaches per 1,000 employees* compared with 8.0 in 2006/07 and 4.8 in 2005/06. Offences include such things as fraud, internet and email abuse, drugs and alcohol abuse and misuse of company vehicles and other assets. Disciplinary actions can range from a verbal warning to dismissal.

*Based on headcount at 31 March in each year.