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## Business units 

AGL’s business units are responsible for maintaining effective internal controls, consistently applying the risk management framework, and reporting new or changed risk events. 

## Group Risk 

Group Risk is responsible for supporting the businesses to identify and implement effective risk management processes, for reporting details of material business risks and risk controls to the Committee, and for recommending changes to the Risk Management Policy. 

## Group Audit 

Group Audit provides assurance to the Committee on the effectiveness of AGL’s risk management framework and on the adequacy and effectiveness of the system of internal controls. 

## Recommendation 7.3 – CEO and CFO assurance on financial reporting risks 

The CEO and the CFO have provided the Board with written assurances that the declaration provided in accordance with section 295A of the Corporations Act is founded on a sound system of risk management and internal control and that the system is operating effectively in all material respects in relation to financial reporting risks. 

## Principle 8: Remunerate fairly and responsibly 

## Recommendation 8.1 – The Board should establish a remuneration committee 

## Recommendation 8.2 – The remuneration committee should be structured appropriately 

The Board has established a People and Performance Committee (equivalent to a remuneration committee) comprising three non–executive and independent Directors, Max Ould (Chairman), Sandra McPhee and Belinda Hutchinson. The Committee has a formal Charter that is required to be reviewed at least every two years. The Charter was most recently reviewed in June 2010. A copy of the Charter is available on AGL’s website. 

The Committee is responsible for: 

> reviewing the performance and remuneration of senior management; and 

> reviewing and ratifying AGL’s remuneration and employment policies, procedures and programs. 

These responsibilities include making recommendations to the Board in relation to: 

> the remuneration of Directors; 

> the remuneration, recruitment, retention and termination policies applicable to AGL’s senior management; 

> guidelines for incentive plans, particularly as they relate to the Executives; 

> the superannuation arrangements in place for AGL employees; and 

> AGL employment policy matters. 

The CEO attends meetings of the Committee by invitation when required to report on and discuss senior management performance, remuneration and related matters, but is not present at meetings when his own performance or remuneration is discussed. 

## Recommendation 8.3 – The Company should distinguish between non–executive Directors’ remuneration and that of executive Directors and senior management 

AGL’s remuneration structure distinguishes between non–executive Directors and that of the CEO and senior management. A Remuneration Report required under Section 300A(1) of the Corporations Act is provided in the Directors’ Report on pages 48 to 59 of this Annual Report. 

## AGL’s Website 

The following documents are published on the AGL website under About AGL/Investor Centre: 

>Annual Report 

> Sustainability Report 

> Corporate Governance Statement 

>Board Charter 

> People and Performance Committee Charter 

> Audit and Risk Management Committee Charter 

> Safety, Sustainability and Corporate Responsibility Charter 

> Nominations Committee Charter 

> Code of Conduct 

> Securities Dealing Policy 

> Compliance Policy 

> Auditor Independence Policy 

> Market Disclosure Policy 

> Risk Management Policy 

> Health, Safety and Environment Policy 

> Privacy Policy 

> Diversity and Inclusion Policy 

> Wholesale Energy Risk Management Policy (summarised) 

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