Contact Energy : 2022 Integrated Report

onlyBuilding a better useAotearoa

New Zealand

personal2022 Integrated Report r

Contact

INTEGRATED REPORT 2022

r personal use only

Welcome to our third integrated report. This report explains how Contact creates value over time, or as we say in our company vision, how we are building a better Aotearoa New Zealand.

Our leadership team has reviewed the report and our CEO Mike Fuge and the Board have confirmed it is a true and accurate picture of how Contact created value for our stakeholders in the 12 months to 30 June 2022.

We expect it to be of interest to our people, customers, investors, suppliers, business partners,

local communities, tangata whenua, legislators, regulators, policymakers and all other stakeholders.

It follows the principles-based approach of the Integrated Reporting Framework and reflects our ongoing journey towards integrated thinking, focused on value creation.

This report is dated 15 August 2022 and is signed on behalf of the Board of Directors of Contact Energy:

Robert McDonald	Sandra Dodds
Chair	Chair, Audit and Risk Committee

Our Chair Robert McDonald and the Board of Directors will host shareholders at the Contact Energy AGM in November 2022. The notice of meeting and agenda will be provided to shareholders in October 2022.

More than 98 percent of Contact Energy shareholders receive digital reports from us. We are very keen for shareholders to move to digital, and in the meantime, we have ensured the 1,500 integrated reports we print use environmentally responsible paper and inks.

We are listed on both the NZX and the ASX.

Contact

INTEGRATED REPORT 2022

onlyContents

usepersonalCONTENTS

FY22 SUMMARY WHO WE ARE

CREATING

VALUE

STRATEGIC

THEMES

STRATEGIC

ENABLERS

GOVERNANCE MATTERS

ADDITIONAL DISCLOSURES

FINANCIAL

STATEMENTS

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Contents

Jargon buster	4	STRATEGIC THEMES	28	Financial statements	101
Glossary for Te Reo Māori	5			Combined Independent Auditors	127
Grow demand	29
FY22 summary	6			and Limited Assurance Report
Grow renewable development	33
Corporate directory	131
Key activity in FY22	6	Decarbonise our portfolio	36
Chair and CEO report	7	Creating outstanding customer	38
Who we are	10	experiences
STRATEGIC ENABLERS	42
Our Board	11
Progress against strategic enablers	43
Our leadership team	12
Environment, social and governance	44
Ngā Tikanga	13
Transformative ways of working	53
Our operations	14
Operational excellence	59
Creating value	16
Governance matters	63
What matters most	18
Our Board	64
Our supply chain	22
Code of Conduct and policies	66
External environment	23
Risk management and assurance	66
Energy trilemma	23
Remuneration report	68
Our business model	24
Additional disclosures	75
Our strategy: Contact26	25
Statutory disclosures	76
Progress against strategic themes	27
Sustainability disclosures	81
		TCFD index	95
		GRI index	96

Contact

INTEGRATED REPORT 2022

onlyuse busterJargon

personalCONTENTS

FY22 SUMMARY WHO WE ARE

CREATING

VALUE

STRATEGIC

THEMES

STRATEGIC

ENABLERS

GOVERNANCE MATTERS

ADDITIONAL DISCLOSURES

FINANCIAL

STATEMENTS

4 r

Jargon buster

ASX	Australian Securities Exchange.
CEN	Contact's stock ticker on NZX and ASX.
Contact	The company called Contact Energy Limited. Unless otherwise
	stated, all activities and indicators in this report are for Contact.
Contact26	Contact's strategy which sets out the company's priorities and
	key activities for the five years from 2021-2026.
EBITDAF	Earnings before interest, tax, depreciation, amortisation,
	and changes in fair value of financial instruments. EBITDAF
	is a non-GAAP (generally accepted accounting practice)
	measure. Information regarding the usefulness, calculation
	and reconciliation of this measure is provided within note A2
	to the financial statements.
ESG	The environmental, social and governance factors used to
	evaluate performance.
FY21	The financial year ended 30 June 2021.
FY22	The financial year ended 30 June 2022.
GRI	The Global Reporting Initiative is an international independent
	standards organisation that helps businesses, governments
	and other organisations understand and communicate their
	impacts on things like climate change, human rights and
	corruption.
The Group	This is Contact Energy Limited, Contact Energy Trustee
	Company Limited (a subsidiary), Contact Energy Risk Limited
	(a subsidiary), Simply Energy Limited (a subsidiary), Western
	Energy Services Limited (a subsidiary), Drylandcarbon One
	Limited Partnership (an associate) and Forest Partners Limited
	Partnership (an associate).
HSE	Health Safety and Environment.

	An abbreviation for The Integrated Reporting Framework,
	a principles-based framework for corporate reporting.
NZAS	Aotearoa New Zealand's Aluminium Smelter is the country's
	only aluminium smelter and is located on Tiwai Peninsula,
	across the harbour from Bluff in Southland.
NZX	New Zealand Stock Exchange.
SDGs	Sustainable Development Goals are 17 global goals designed
	to be a "blueprint to achieve a better and more sustainable
	future for all". The SDGs were set in 2015 by the United Nations
	General Assembly and intended to be achieved by 2030.
TCFD	The Task Force for Climate-related Financial Disclosures
	provides a framework for climate-related financial risk
	disclosures.
Terrawatt	A unit of energy equal to outputting one million million watts
hour (TWh)	for one hour.
TISR	Total Incident Severity Rate is a leading indicator measure
	that assesses the potential severity of HSE and process
	safety incidents.
TRIFR	Total Recordable Injury Frequency Rate is a globally
	recognised measure of injury rates that can be benchmarked.
TWoW	Transformative Ways of Working is one of our major strategic
	themes. It is focused on reimagining our traditional ways
	of working.

Contact

INTEGRATED REPORT 2022

reo Māori

Glossary of commonly used Te Reo Māori (Māori language)

useGlossaryonlyf lymmoc used te

Ākonga	Student
Aotearoa	New Zealand
Awa	River, stream
Hapū	Kinship group, subtribe
Iwi	Extended kinship group, tribe
Kaitiaki	Guardian, steward
Kaitiakitanga	Guardianship, stewardship
Kaumātua	Elder, elderly person, person of status
	within the whānau
Māori	Indigenous Peoples of Aotearoa New Zealand
Mahi	Work, activity
Mana whenua	The hapū and iwi groups that have territorial
	rights and authority over land

Marae	Traditional Māori meeting house
Rangatahi	Youth
Taonga	Treasure, anything prized
Tangata	People of the land, in Aotearoa New Zealand
whenua	Māori as the Indigenous People are known
	as the tangata whenua
Te Tiriti o	The Treaty of Waitangi, Aotearoa New Zealand's
Waitangi	founding document between the British Crown
	and Māori chiefs
Tikanga	Custom, protocol
Whakapapa	Genealogy, lineage, descent
Whānau	Extended family, family group
Whenua	Land, ground

personalCONTENTS

FY22 SUMMARY WHO WE ARE

CREATING

VALUE

STRATEGIC

THEMES

STRATEGIC

ENABLERS

GOVERNANCE MATTERS

ADDITIONAL DISCLOSURES

FINANCIAL

STATEMENTS

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Translations have primarily been sourced from Te Aka Māori Dictionary.