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Goal: Deliver growth in total shareholder returns and enhance the quality of earnings through sound risk management and diversification of earnings streams.

Australia, like the rest of the world, is embarking upon a decade of transformational reform within electricity and gas markets. Policies such as the Carbon Pollution Reduction Scheme and the expanded Renewable Energy Target will require tens of billions of dollars of new investment in energy infrastructure by 2020. In this environment, achieving growth in total shareholder returns and diversification of earnings streams requires companies to develop portfolio flexibility within their corporate strategies. AGL has developed sophisticated portfolio flexibility around its core integrated energy company strategy to thrive in this transformational environment.

This section provides a summary of how AGL manages its economic risks to deliver on its integrated energy company strategy. Detailed financial information is available in the AGL Annual Report.

Achieving our Economic Performance goal is underpinned by the following strategies:

• Continue to implement AGL’s integrated business strategy;
• Reduce operating costs while improving service quality and appropriately managing our business risks;
• Maintain Australia’s largest and most diverse private portfolio of renewable generation assets to deliver sustainable benefits in a carbon constrained environment and to meet an expanded Renewable Energy Target; and
• Apply a disciplined approach to growth strategies that add to AGL’s integrated strategy and provide sustainable cash flows. 

Additionally, we continue to move towards ‘Best Employer’ engagement with our employees, in the recognition that our employees are central to our economic success. Further information is available in the Employees section of this report.