Corporate Governance

The NEA Board provides strategic direction and oversight of organisational functions and goals, and steers NEA in fulfilling our vision and mission. In the Financial Year (FY) 2021, the Board comprised 14 members with diverse and extensive experience from both the private and public sectors.

Appointed by the Minister for Sustainability and the Environment, the Board is guided by a set of key principles to ensure fairness and impartiality in carrying out its responsibilities, as well as to uphold the integrity and reputation of the Public Service. Led by Chairman Mr Lee Chuan Seng, the Board has set up committees to assist with the execution of its responsibilities.

The Audit Committee assists the Board in maintaining a high standard of corporate governance, particularly in the areas of financial accounting and reporting, risk management, and internal control systems. Chaired by Ms Jackie Chew, the Audit Committee comprises Ms Sylvia Choo, Mr Puah Kok Keong, Dr Andrew Khoo, and Mr Bernard Choo. The Committee reviews the annual accounts, audit plans, internal control systems, as well as risk and audit reports with NEA’s external and internal auditors.

The Human Resource Committee assists the Board in ensuring an objective and fair performance management process for NEA. Chaired by Mr Lee Chuan Seng, the Human Resource Committee comprises Deputy Chairman Mr Ravinder Singh, Ms Lynette Leong (till 31 March 2022), Mr Lim Eng Hwee, Mr Zia Zaman (as of 1 April 2022), and NEA’s Chief Executive Officer (CEO).

The Finance Committee oversees matters related to the investment of surplus funds, cash and working capital management, and fundraising activities. Chaired by Mr Quek Suan Kiat, the Finance Committee comprises Mr Suhaimi Zainul-Abidin, Ms Susan Chong, Professor Ho Teck Hua (till 31 March 2022), Ms Janet Young (as of 1 April 2022), and NEA’s CEO.

NEA’s senior management, led by our CEO, is responsible for implementing the strategic direction of NEA’s programmes, and nurturing a high-performance organisation committed to fulfilling NEA’s environmental mission and roles. They manage the financial, manpower and operational resources of their respective divisions and departments, and work together at committee meetings to guide NEA’s continued performance in risk management, innovation and sustainability practices.

The Senior Leadership Team meets regularly to direct and review management and operational policies and activities. It also leads and directs NEA’s strategies and transformational efforts. Through strategically-themed meetings and projects, the Senior Leadership Team guides NEA in becoming more effective in our dual roles as regulator and champion for the environment. These efforts are aimed at improving how NEA is organised, leveraging technology and utilising resources, thereby enabling better results by working smarter and striving for organisational excellence.

The pay structure for senior management consists of fixed pay and variable pay. While the variable pay component is influenced by economic factors, it is directly linked to the individual’s performance achievement. The ratio of variable pay to fixed pay for senior management is relatively higher as this drives performance, which is reviewed and assessed by the Human Resource Committee. The Committee provides an objective and fair performance assessment, and approves the corresponding recommendation of performance bonuses and salary increments.

NEA has an internal code of conduct that applies to all employees as NEA has a zero-tolerance policy on fraud and misconduct by employees. Called the NEA Person Code, the code of conduct articulates NEA’s vision, mission and values, appropriate conduct, and guidelines concerning conflicts of interest, confidentiality, corruption prevention and proper financial stewardship.

The Code also sets out principles to guide employees in discharging their duties and responsibilities to the highest standards of personal and corporate integrity. The NEA Person Code is readily available on the NEA intranet and in the Staff Handbook.

All new staff are informed about the NEA Person Code. Reminders on the code are also regularly sent to staff. In the event of a breach of discipline, the NEA Disciplinary Policy details the appropriate procedures to deal with the breach. Under NEA’s whistleblowing policy, employees and third parties are encouraged to report any incidents of fraud and serious misconduct. NEA also offers employees ample channels to air their grievances on matters that affect the terms and conditions of their service. They are reminded to declare as and when there is an actual or potential conflict of interest in their official duties and personal interests, during the course of their work. Should there be declarations, the relevant parties would be informed.

Each year, NEA’s accounts are audited by external auditors, approved by the Board and published with our Integrated Sustainability Report. The external auditors are appointed by the Minister for Sustainability and the Environment for a fixed term, in consultation with the Auditor-General. In addition, the Auditor-General’s Office and Accountant-General’s Department also perform both scheduled and ad hoc audits to ensure that NEA continues to adhere to good governance practices.

The external auditors provide the Board with an independent opinion on NEA’s financial statements, offering reasonable assurance that the financial statements are free from material misstatements. They conduct the audit in accordance with the audit plan presented to the Audit Committee. The external auditors are required to declare their state of independence to the Audit Committee prior to their appointment. Significant non-audit services to be provided by the external auditors are also subjected to approval by the Audit Committee.

NEA’s Internal Audit Division provides independent assurance and advisory services to management and the Audit Committee. Reviews performed by the Internal Audit Division assist the Board in promoting good corporate governance by assessing the design and operating effectiveness of controls. The reviews also focus on compliance with NEA’s policies and procedures.