Sustainability Is Not a Policy... ERM POWER ANNUAL REPORT 2019

Total Page:16

File Type:pdf, Size:1020Kb

Sustainability Is Not a Policy... ERM POWER ANNUAL REPORT 2019 Sustainability is not a policy... ERM POWER ANNUAL REPORT 2019 REPORT ANNUAL ANNUAL REPORT 2019 ...it's our DNA. CONTENTS Performance highlights 2 Operating and financial review 29 Directors’ report 50 Chair and Managing Director’s report 4 Financial year highlights 30 Remuneration report 53 Rethinking energy 6 Outlook and future prospects 32 Annual financial statements 69 Board of Directors 8 Summary of group financial results 34 Shareholder information 133 Executive team 12 Divisional performance review 39 Corporate information 135 Our business model 14 Our strategy 16 Appendices 46 Corporate social responsibility 18 Glossary 49 ERM Power Limited ABN 28 122 259 223 shares are traded on the Australian Securities Exchange under the symbol EPW. This review is for ERM Power (Company, Group, we, our) for the year ended 30 June 2019 with comparison against the previous corresponding period ended 30 June 2018 (previous period, previous year or comparative period). All reference to $ is a reference to Australian dollars unless otherwise stated. Individual items totals and percentages are rounded to the nearest approximate number or decimal. Some totals may not add down the page due to rounding of individual components. Bigger thinking: it’s just better business. Sustainability is fundamental to ERM Power’s business strategy and our reason for being. Electricity retailing and energy management are what we do. These core business functions: 1. support customers to manage energy volatility, reduce energy consumption and build energy productivity for cost and environmental benefits; and 2. ensure our own business sustainability by doing the right things for customers, the environment and our relevance in a rapidly evolving energy sector. ERM POWER | 2019 ANNUAL REPORT 1 ERM Power’s success in FY2019 was Kicking achieved by placing customers at the centre of what we do and delivering on our strategy to meet the growing supply and goals. demand side needs of our customers. $ 1 7. 7 TWh 90.5 m ELECTRICITY SALES UNDERLYING EBITDAF1 LOAD VOLUME $ $ 5.16 26.0 m ELECTRICITY GROSS UNDERLYING NPAT 1 MARGIN/MWh YEARS 8IN A ROW 91% #1 FOR CUSTOMER OF EMPLOYEES PROUD TO WORK SATISFACTION2 AT ERM POWER. ABOVE GLOBAL HIGH PERFORMING NORMS.3 CPS 1. All figures continuing operations unless otherwise stated. 12 Refer Appendix A1.2 for reconciliation to statutory earnings. FY2019 DIVIDENDS 2. Utility Market Intelligence (UMI) Survey, Feb 2019. FULLY FRANKED 3. Korn Ferry Hay Group Employee Survey, Feb 2019. 2 ERM POWER | 2019 ANNUAL REPORT PERFORMANCE HIGHLIGHTS ERM POWER | 2019 ANNUAL REPORT 3 A nimbler, swifter, smarter year. ERM Power performed well in FY2019, Our business model has always placed customers at the centre of what we do. We help our customers to better delivering on our strategy to meet the navigate and manage through their energy supply side and growing supply and demand needs of demand side challenges. commercial and industrial energy consumers On the supply side of the equation we work with businesses in an increasingly complex market. to manage wholesale market volatility through their retail contract. We have been good at this for the past 10 years All parts of the business performed in line with expectations. and have successfully continued to grow and innovate in this Strategic acquisitions delivered further capability and market space. We are a retailer that can understand the complexity reach to our growing Energy Solutions business. of a customer’s electricity load and shape and help them optimise outcomes, ultimately by offering a fixed unit price for Earnings were at $90.5m (EBITDAF1) relative to $97.5m in what is a volatile commodity. FY2018 primarily due to lower earnings from Oakey Power Station and higher corporate costs as the business invested On the demand side of the equation we work with our in IT and infrastructure to support new energy productivity customers to improve their energy productivity. We’re platforms and an expanded proposition for customers. motivated to help customers with their energy efficiency, demand management and renewable generation to drive Underlying Net Profit After Tax was $26.0m2 ($30.2m in FY2018). energy productivity because customers want it and it is the An additional $16.1m of Net Profit After Tax was realised through future. We are offering solutions that harness smart data and our 2017 large scale generation certificate strategy, which allowed analytics to give businesses meaningful ways of driving down us to support two large renewable generation projects. consumption for cost and environmental benefits. The sale of the US business, Source Power & Gas, was completed allowing a focus on value creation in our Australian Performance business. The growth and potential of our Energy Solutions In FY2019 electricity sales load was at 17.7TWh and pleasingly business was underpinned by the acquisition of Out forward contracted load at 30 June 2019 was the highest Performers in September 2018 and investment in Alliance on record at 32.2TWh. The full-year gross margin was at Automation in July 2019. Both add substantially to the the higher end of expectations at $5.16/MWh. In Retail, capability of our business across the energy procurement and we’ve driven growth in forward sales load and gross margin productivity value chain. demonstrating the value and strength of this franchise with its exceptional customer service, satisfaction and preference. Strategy and sustainability In the Generation business, Neerabup Power Station Sustainability is fundamental to our business strategy and performed strongly, primarily off the back of merchant the way we operate. It isn’t simply a policy for ERM Power. opportunities. Oakey Power Station, which underperformed Electricity retailing and energy efficiency are what we do. relative to FY2018 due to benign market conditions, will These core functions: benefit from the increasing penetration of renewable • support customers to manage energy volatility, reduce generation and resulting wholesale price volatility. The energy consumption and build energy productivity for cost power stations delivered outstanding availability and overall and environmental benefits; and performance, while maintaining excellent safety records. • ensure our own business sustainability by doing the Energy Solutions recorded revenue of $21.8m and increased right things for customers, the environment and our own gross margin as we continued to invest in the growth of relevance in a rapidly evolving energy sector. our energy productivity business. Energy Solutions is on track to make material contributions in the medium term ERM Power and the energy environment and achieve breakeven at the NPAT level in FY2020. This is Our success throughout the year was achieved in the face of all about partnering with customers to deliver end to end, a volatile and transforming energy market, policy uncertainty integrated solutions - meeting the energy management needs and political rhetoric that further added to customer of Australian businesses, driving customer retention, and confusion and frustration. Our advocacy for commercial and leveraging our significant retail customer base into Energy industrial (C&I) customers, and ultimately all C&I energy Solutions. We estimate this will build to an annual market of users, has been core to our success and will remain our unique about $1 billion of spend - a sizable market opportunity for market differentiator. our Energy Solutions business. 4 ERM POWER | 2019 ANNUAL REPORT CHAIR AND MANAGING DIRECTOR’S REPORT Capital management and dividends Julieanne Jon Stretch Alroe A share buyback commenced in March 2018 as part of our Managing Chair Director capital management framework to return excess capital to and CEO shareholders. At 30 June 2019 $12.8m of capital had been utilised for the buyback with a total of 7.3m shares acquired. Culture A fully franked final dividend of 4.5 cents per share for The strong performance of ERM Power is underpinned by the FY2019 was declared on 22 August 2019. A fully franked interim hard work, innovation and responsiveness of our people. dividend of 4.5 cents per share was paid on 17 April 2019. We have the highest customer satisfaction ratings in the A fully franked special dividend of 3 cents per share was paid industry by a long shot and that’s because our people are on 17 April 2019. We saw this as an efficient way to return engaged and enabled to deliver. In February 2019 we undertook surplus capital to shareholders while retaining capital for the Korn Ferry Hay Group employee survey for the third time in investment in further growth opportunities. four years to gauge employee sentiment during what has been The capital management program reflects the Company’s strong a period of growth and change for the business and industry. liquidity position and our confidence in the earnings outlook. The results were at or above global high-performing norms in engagement, enablement, leadership, safety and across a range Transitioning to a lower-carbon future of key dimensions important to our people. Energy Solutions is at the core of supporting C&I energy We would like to thank the employees of ERM Power for consumers with efficiency and productivity solutions that their professionalism and dedication to delivering outstanding answer to environmental, cost and value creation imperatives. customer service. Importantly, to our loyal customers and We’re also supporting the transition to renewables through shareholders, thank you for the trust you place in us as we offtake agreements underpinning the Lincoln Gap wind farm continue on this journey to deliver great energy outcomes and (126MW) and Hamilton solar farm (58MW), and through new create shared value for all. generation financial products. This strategy further supports corporate investment in renewable energy. To our fellow directors, your support and commitment to the business during FY2019 is greatly appreciated and a special ERM Power is proud to have pioneered these new generation thanks to Tony Bellas who served as Chair for seven years products which have been well received in the market.
Recommended publications
  • 2020 Shell in Australia Modern Slavery Statement
    DocuSign Envelope ID: D3E27182-0A3B-4D38-A884-F3C2C5F0C272 JOINT MODERN SLAVERY STATEMENT UNDER THE MODERN SLAVERY ACT 2018 (CTH) FOR THE REPORTING PERIOD 1 JANUARY 2020 TO 31 DECEMBER 2020 Shell Energy Holdings Australia Limited has prepared this modern slavery statement in consultation with each of the following reporting entities, and is published by the following reporting entities in compliance with the Modern Slavery Act 2018 (Cth) (No. 153, 2018) (“Modern Slavery Act”):- 1) Shell Energy Holdings Australia Limited (“SEHAL”); 2) QGC Upstream Investments Pty Ltd (“QGC Upstream”); 3) QGC Midstream Investments Pty Ltd (“QGC Midstream”); and 4) ERM Power Limited (“ERM Power”), (collectively “Shell”, “our” or “we”)i Note on ERM Power: At the time this statement’s publication, ERM Power Limited will have been re- named to Shell Energy Operations Pty Ltd. However, as this statement pertains to ERM Power Limited’s structure, operations and supply chain from 1 January 2020 to 31 December 2020, we have maintained the previous entity name of ERM Power Limited for this statement. In addition, as ERM Power’s integration into Shell is ongoing, we have noted throughout this statement where ERM Power’s approach or processes differ from that of Shell. Finally, at the time this statement’s publication, ERM Power’s policies, for which links are listed under the “ERM Power” sub-heading in “Our values, policies & approach to human rights”, will be decommissioned; however would be available upon request as ERM has adopted the equivalent Shell policies. Introduction Shell is opposed to all forms of modern slavery. Such exploitation is against Shell’s commitment to respect human rights as set out in the Universal Declaration of Human Rights and the International Labour Organization 1998 Declaration of the Fundamental Principles of Rights at Work.
    [Show full text]
  • Tim Please Find Attached a Copy of Zoe's Speech to the Melbourne Mining Club That She Delivered Today. Apologies for the Delay
    From: @shell.com To: Tim Roy Cc: @shell.com Subject: Shell Australia Chair, Zoe Yujnovich address to Melbourne Mining Club Date: Wednesday, 13 February 2019 2:34:44 PM Attachments: image001.jpg image002.jpg image003.jpg image004.jpg CChZY Melb Mining Club 2019 vFINAL.pdf Tim Please find attached a copy of Zoe’s speech to the Melbourne Mining Club that she delivered today. Apologies for the delay, I had intended to get this to you earlier. The underlying tone in Zoe’s speech was a call for industry to be more united in their approach on a number of issues, including Calling for policies that help provide investor certainty – both from a political and economic perspective Advocating for policies that encourage business to invest in solutions required to reduce emissions in the economy (on this, you will recall all of industry was supportive of the original NEG design) The importance of free trade and open markets in helping to support wage growth aspirations Happy to discuss any aspects. best regards, Manager, Federal Government and Policy Shell Australia M: ddd Internet: www.shell.com.au P Please consider the environment before printing this email ________________________________ Please consider the environment before printing this email CONFIDENTIALITY AND PRIVILEGE NOTICE: This message and any accompanying attachments are intended for the addressee named and may contain confidential or privileged information. If you are not the intended recipient do not read, use, distribute or copy this message or attachments. Please notify the sender immediately and delete the message. Please be informed that any personal data submitted and handled as a part of the Shell business relationship with its customers, supplier or partners is processed in accordance with the Shell Global Privacy Policy - Business Customers, Suppliers and Business Partners available at the relevant webpage under the domain www.shell.com, as supplemented by any further specific and/or local privacy statements.
    [Show full text]
  • The ALM Vanguard: Strategic Risk Management Consulting2019
    Source: ALM Intelligence's Strategic Risk Management Consulting (c) 2019; used by licensing permissions Buyer Ratings Guide The ALM Vanguard: Strategic Risk Management Consulting 2019 March 2019 Source: ALM Intelligence's Strategic Risk Management Consulting (c) 2019; used by licensing permissions Buyer Ratings Guide Contents Overview 3 ALM Vanguard of Strategic Risk Management Consulting Providers 5 Competitive Landscape 6 Provider Capability Rankings 7 Rating Level Summaries 8 Leader Assessments 9 Provider Capability Ratings 10 Best in Class Providers 11 Provider Briefs 12 Definitions 20 Methodology 22 About ALM Intelligence 24 Author Naima Hoque Essing Senior Research Analyst, Management Consulting Research T +1 212-457-9174 [email protected] For more information, visit the ALM Intelligence website at www.alm.com/intelligence/industries-we-serve/consulting-industry/ © 2019 ALM Media Properties, LLC 2 Source: ALM Intelligence's Strategic Risk Management Consulting (c) 2019; used by licensing permissions Buyer Ratings Guide Overview Capability Drivers Risk is finally making it onto the formal agenda of boards and senior leadership. With the risk environment more complex than ever and with the frequency and impact of disruption rising due to the confluence of changing geopolitical trends, technology disruption and rising stakeholder expectations, boards are looking for better ways to stay abreast of change or to get ahead of it. At the same time, while many companies have invested in basic internal risk controls, they are still blindsided by risk. These trends are creating tension among companies for the need to do something. Boards are increasingly questioning consultants on how to incorporate risk into the strategic agenda and make risk management more relevant and connected to the actual needs of the business in making decisive, bigger and faster bets on the future.
    [Show full text]
  • Negativliste. Fossil Energi
    Bilag 6. Negativliste. Fossil energi Maj 2017 Læsevejledning til negativlisten: Moderselskab / øverste ejer vises med fed skrift til venstre. Med almindelig tekst, indrykket, er de underliggende selskaber, der udsteder aktier og erhvervsobligationer. Det er de underliggende, udstedende selskaber, der er omfattet af negativlisten. Rækkeetiketter Acergy SA SUBSEA 7 Inc Subsea 7 SA Adani Enterprises Ltd Adani Enterprises Ltd Adani Power Ltd Adani Power Ltd Adaro Energy Tbk PT Adaro Energy Tbk PT Adaro Indonesia PT Alam Tri Abadi PT Advantage Oil & Gas Ltd Advantage Oil & Gas Ltd Africa Oil Corp Africa Oil Corp Alpha Natural Resources Inc Alex Energy Inc Alliance Coal Corp Alpha Appalachia Holdings Inc Alpha Appalachia Services Inc Alpha Natural Resource Inc/Old Alpha Natural Resources Inc Alpha Natural Resources LLC Alpha Natural Resources LLC / Alpha Natural Resources Capital Corp Alpha NR Holding Inc Aracoma Coal Co Inc AT Massey Coal Co Inc Bandmill Coal Corp Bandytown Coal Co Belfry Coal Corp Belle Coal Co Inc Ben Creek Coal Co Big Bear Mining Co Big Laurel Mining Corp Black King Mine Development Co Black Mountain Resources LLC Bluff Spur Coal Corp Boone Energy Co Bull Mountain Mining Corp Central Penn Energy Co Inc Central West Virginia Energy Co Clear Fork Coal Co CoalSolv LLC Cobra Natural Resources LLC Crystal Fuels Co Cumberland Resources Corp Dehue Coal Co Delbarton Mining Co Douglas Pocahontas Coal Corp Duchess Coal Co Duncan Fork Coal Co Eagle Energy Inc/US Elk Run Coal Co Inc Exeter Coal Corp Foglesong Energy Co Foundation Coal
    [Show full text]
  • ERM Power's Neerabup
    PROSPECTUS for the offer of 57,142,858 Shares at $1.75 per Share in ERM Power For personal use only Global Co-ordinator Joint Lead Managers ERMERR M POWERPOWEPOWP OWE R PROSPECTUSPROSPEOSP CTUCTUSTU 1 Important Information Offer Information. Proportionate consolidation is not consistent with Australian The Offer contained in this Prospectus is an invitation to acquire fully Accounting Standards as set out in Sections 1.2 and 8.2. paid ordinary shares in ERM Power Limited (‘ERM Power’ or the All fi nancial amounts contained in this Prospectus are expressed in ‘Company’) (‘Shares’). Australian currency unless otherwise stated. Any discrepancies between Lodgement and listing totals and sums and components in tables and fi gures contained in this This Prospectus is dated 17 November 2010 and a copy was lodged with Prospectus are due to rounding. ASIC on that date. No Shares will be issued on the basis of this Prospectus Disclaimer after the date that is 13 months after 17 November 2010. No person is authorised to give any information or to make any ERM Power will, within seven days after the date of this Prospectus, apply representation in connection with the Offer which is not contained in this to ASX for admission to the offi cial list of ASX and quotation of Shares on Prospectus. Any information not so contained may not be relied upon ASX. Neither ASIC nor ASX takes any responsibility for the contents of this as having been authorised by ERM Power, the Joint Lead Managers or Prospectus or the merits of the investment to which this Prospectus relates.
    [Show full text]
  • Annual & Sustainability Report
    Smart solutions out of fibers Annual2020 & Sustainability Report 1 / ANNUAL & SUSTAINABILITY REPORT 2020 Contents YEAR IN BRIEF ........................................................................3 Abrasive ................................................................................52 THE FINANCIAL YEAR 2020........................................96 CSR DATA ..............................................................................184 Highlights of 2020 ................................................................4 Medical ..................................................................................53 Board of Directors’ report ...........................................97 Reporting principles ..................................................... 185 CEO word ....................................................................................5 Liquid Technologies ........................................................54 Key figures .............................................................................112 GRI content index ............................................................ 193 Beverage & Casing ..........................................................55 Consolidated financial statements, IFRS ........ 118 UN Global Compact........................................................ 198 THE COMPANY .......................................................................7 Tape .........................................................................................56 Income statement ..........................................................
    [Show full text]
  • Uniendo Empresas Y Gobiernos Para Una Mejor
    DECLARACIÓN DE UNIENDO EMPRESAS EMPRESAS DE LA INICIATIVA DE OBJETIVOS Y GOBIERNOS PARA UNA BASADOS EN LA CIENCIA Y SU CAMPAÑA DE MEJOR RECUPERACIÓN AMBICIÓN EMPRESARIAL EN UN MOMENTO DE DISRUPCIÓN MUNDIAL, PARA 1.5 °C LA AMBICIOSA ACCIÓN CLIMÁTICA SIGUE TENIENDO LA MISMA URGENCIA Demuestren que las mejores decisiones y acciones se Con el coronavirus (COVID-19) nos enfrentamos a una 1 basan en la ciencia. pandemia global que es devastadora tanto para las Con la implementación de objetivos ambiciosos basados en personas como para su sustento, ya que interrumpe la ciencia, apuntamos a situar al mundo en una trayectoria de las cadenas de suministro, intensifica aún más las 1.5 °C que conduce a personas más sanas y seguras, así como desigualdades y revierte el progreso de los Objetivos a un planeta también más sano y seguro. de Desarrollo Sostenible. Al mismo tiempo, seguimos Inviertan en recuperación y resiliencia para una afrontando una emergencia climática global con transformación socioeconómica sistémica. impactos irreversibles para las personas y para todos 2 Al deshacernos del uso de combustibles fósiles y a través de la los sistemas naturales que nos sustentan. Ante estas innovación en soluciones de bajo nivel de carbono y resilientes, crisis interconectadas no podemos permitirnos abordar estamos priorizando los empleos ecológicos y el crecimiento solo una u otra. La salud humana depende de la salud sostenible, protegiendo a la naturaleza y a las personas, del planeta. Podemos, y debemos, abordar ambas. y cumpliendo con la Agenda 2030 y el Acuerdo de París. A medida que los países trabajan en los paquetes de Trabajen con los Gobiernos y amplíen el movimiento.
    [Show full text]
  • ERM Power Limited Notes to the Financial Statements for the HALF YEAR ENDED 31 DECEMBER 2016
    Thursday, 23 February 2017 RESULTS FOR ANNOUNCEMENT TO THE MARKET Please find attached the following documents relating to ERM Power’s results for the six months ended 31 December 2016: 1. Appendix 4D 2. Half Year Financial Report including Management Discussion and Analysis and Directors’ Report Phil Davis Group General Counsel & Company Secretary ERM Power Limited About ERM Power ERM Power is an Australian energy company operating electricity sales, generation and energy solutions businesses. The Company has grown to become the second largest electricity provider to commercial businesses and industrials in Australia by load, with operations in every state and the Australian Capital Territory. A growing range of energy solutions products and services are being delivered, including lighting and energy efficiency software and data analytics, to the Company’s existing and new customer base. ERM Power also sells electricity in several markets in the United States. The Company operates 497 megawatts of low emission, gas-fired peaking power stations in Western Australia and Queensland. www.ermpower.com.au Appendix 4D ERM Power Limited ABN 28 122 259 223 Results for announcement to the market for the half year ended 31 December 2016 Notification in Accordance with Listing Rule 4.2A.3 (The amount and percentage changes are in relation to the previous corresponding period) 1. Results for the half year 1H 2017 1H 2016 $'000 $'000 1.1. Revenue from ordinary activities: 1.1.1 Revenue from ordinary continuing activities: ERM Power Limited and controlled entities up 5% to 1,340,505 1,282,471 1.2. Profit from ordinary continuing activities: 1.2.1.
    [Show full text]
  • Orsa Advisory Services
    GUY CARPENTER STRATEGIC ADVISORYSM GROWTH | CAPITAL | RISK | INSIGHT ORSA ADVISORY SERVICES For the P&C Insurance Industry Managing property and casualty risk in today’s business environment can be an extremely difficult task. Chief Actuaries and Chief Financial Officers are faced with the challenges of minimizing risks while maximizing returns within an ever-changing legal, economic, and regulatory environment. The challenges are only heightened with the new regulatory requirements for the Own Risk and Solvency Assessment (ORSA) that went into effect on January 1, 2015. Our independent, specialized advice and professional services are helping organizations meet this challenge. The National Association of Insurance Commissioners (NAIC) launched the Solvency Modernization Initiative (SMI) in June 2008, seeking to upgrade regulatory supervision over the enterprise risks of US insurance companies. The NAIC subsequently adopted the ORSA Model Act in September 2012, and many states have now passed this legislation. Beginning in 2015, companies domiciled in these states with at least $500M of written premium (or belonging to a group with at least $1B) were required to file an ORSA Summary Report annually with the regulator. F-4 | ORSA/ERM FRAMEWORK –THE FOUR LAYERS F-2 | ASIAN ECONOMIES AND INSURANCE REGULATION IN PERSPECTIVE F-1 | REGULATION SOPHISTICATION SCALE F-3 | C-ROSS FRAMEWORK F-5 | MSA BASIC FRAMEWORK CULTURE An eective ERM is important 70,000 Myanmar Philippines, Indonesia, Thailand, Hong Kong* Australia, Switzerland, Solvency II*
    [Show full text]
  • Renewing AEMO's Engagement Model
    Renewing AEMO’s Engagement Model AEMO – Options paper SHELL ENERGY AUSTRALIA RESPONSE August 2020 Shell has been active in Australia since 1901. In Queensland, Shell is the operator of the onshore QGC coal seam gas project and Joint Venture (JV) partner in the Arrow project. In Western Australia, Shell operates Prelude Floating LNG and is also part of JV projects including North West Shelf and Gorgon. Australia continues to be a priority market for Shell as Shell aims to become a global leader in cleaner power generation and innovative energy solutions for customers. In 2017, Shell Energy Australia (SEAu) was established as Shell’s trading arm to bring increased diversity of supply and integrated energy solutions to the Australian market. In 2019, SEAu acquired ERM Power, a leading commercial and industrial electricity retailer, as a wholly-owned subsidiary. We have also acquired 100% of sonnen- a leader in smart energy storage systems and innovative household solutions and a 49% stake in ESCO, a utility scale solar developer. Further, we are building our first commercial-scale solar project in Queensland. Gangarri is a 120MW solar energy project which will generate enough electricity to power around 50,000 homes. These acquisitions unlock opportunities for SEAu to support Australia’s energy markets and customers to deliver the future energy system. SEAu welcomes the opportunity to provide comment to the Australian Energy Market Operator (AEMO) on proposed reforms to improve AEMO’s stakeholder engagement model. GENERAL COMMENTS SEAu is encouraged that AEMO is endeavouring to improve its stakeholder engagement process. This is a timely exercise given the significant reform agenda underway to support the energy market transition.
    [Show full text]
  • AFERM Newsletter June 2020 Thought Leadership for the Federal Enterprise Risk Management Community
    Issue 33 AFERM Newsletter June 2020 Thought Leadership for the Federal Enterprise Risk Management Community Contents The President’s Corner .............................................. 2 Sharing Your Success Stories .................................. 5 ERM Events ................................................................. 6 Thought Leadership ................................................... 7 AFERM’s 2020 Virtual Summit ............................... 16 AFERM’s ERM Podcasts ........................................ 18 Thought Leadership ................................................. 19 ERM News ................................................................. 24 AFERM’s ERM Blog ................................................. 25 Thought Leadership ................................................. 27 AFERM’s Communities of Interest/Practice ......... 29 AFERM Membership ................................................ 31 Thought Leadership ................................................. 32 AFERM Officers, Committees, and Communities 38 Highlights This 33rd issue of the quarterly AFERM Newsletter includes thought leadership articles from ERM practitioners with Grant Thornton, Guidehouse, and RSA, and a short article from WAEPA. Also, AFERM’s Virtual 2020 Summit Training is September 10th – a full day of connectivity, idea sharing, and continuing professional education! Issue 33 AFERM Newsletter June 2020 Thought Leadership for the Federal Enterprise Risk Management Community The President’s Corner Applying Enterprise Risk
    [Show full text]
  • Unlock Growth by Integrating Sustainability: How to Overcome the Barriers
    Global Risk Center UNLOCK GROWTH BY INTEGRATING SUSTAINABILITY: HOW TO OVERCOME THE BARRIERS AUTHOR Integrating sustainability into and finance and risk Lucy Nottingham, management strategies will help companies capture Director, Global Risk Center, growth in the face of shifting customer, capital market and Marsh & McLennan Companies regulatory demands. EIGHT TAKEAWAYS 1. The rising pressures of a changing physical environment present a wide array of strategic and operational risks to many companies. Executives must ask themselves: How sustainable is our business, and are our strategies and operations at risk? 2. Customers, capital markets, and regulators are increasingly examining corporate sustainability risk profiles. The focus on sustainability and climate-change-related practices will affect both the cost and availability of financing for many companies. 3. Companies must identify, assess and respond to the strategic and operational risks and opportunities presented by the changing business environment. 4. Yet there are often disconnects between established corporate finance modeling and enterprise risk management processes and the discourse and expertise surrounding sustainability issues. 5. Three factors contribute to the organizational gap between finance and enterprise risk management and sustainability: unclear terms, unclear roles and risk responsibilities, and unclear corporate leadership and engagement on sustainability. 6. Companies that do not close this gap may find themselves losing ground in an increasingly competitive global marketplace. 7. Leading companies have leveraged sustainability initiatives to raise capital and reduce operational costs and volatility. 8. Finance, enterprise risk and sustainability leaders must integrate their efforts to provide real value in helping their organizations respond to evolving risks and capture competitive advantages.
    [Show full text]