2020 CEO Survey: Brett Redman, AGL

AGL will continue to lead the business of transition to a clean energy future, says chief executive Brett Redman.

What are the three enduring lessons or changes to flow from COVID-19?

The resilience that Australians have — households, businesses, communities, the health sector and governments. The way we have responded and worked together compared with the rest of the world is a real testament to the ability of Australians to dig deep when times are tough, to be resilient and to look out for one another. I think right now we really are standing out to the world as the Lucky Country.

Secondly, this year has put the spotlight on safety and been an important reminder that we can all play a part in the safety of ourselves and others. This is a message we practice every day within our business and one that has never been truer in our everyday lives than now.

At AGL, our response to the COVID-19 pandemic has been guided by our priorities of protecting our people and keeping the lights on and gas flowing for millions of Australians. It’s something I’m particularly proud of. We’ve witnessed the effects on people’s lives of bushfires, drought and now the pandemic, and have learned that anyone can be vulnerable – even for a short time – and business has a role in working with vulnerable customers through their own recovery.

How would you rate the shape of the Australian economy as we head into the new year?

While the impact on businesses and households is still being felt, particularly in Victoria, we are beginning to see strong signs of recovery as small business opens up again, and consumer sentiment becomes more positive.

The federal government measures have been decisive, and I believe they will underpin a sustainable recovery. It would be overly optimistic, however, to assume the recovery will be either quick or steady. The economic headwinds that existed prior to the pandemic remain a challenge to growth, and the easing of support, like JobKeeper, is likely to soften recovery for a period.

With the news of a vaccine next year and the resilience of the Australian economy and people, I am confident that we will not only bounce back but reflect on the experience and come out stronger.

What three reforms are needed to sustainably grow the economy?

This year has seen a lot of significant reform as governments seek to manage the fallout from the pandemic and recession. The measures that have been put in place, not just during the pandemic but in the recent budget and supported by the Federal Opposition are important to steer us in the right direction.

We also welcomed the federal government’s National Technology Investment Roadmap, which puts infrastructure and technology at the forefront of recovery. This strategy is consistent with AEMO’s 2020 Integrated System Plan and aligns with our ongoing commitment to firming technology.

What are the three best growth opportunities for your company in 2021?

Despite the impact of the pandemic and the recession, we expect to continue growing the breadth and scale of our business in FY21 by increasing customer numbers, now at 4.2 million services, and pursuing our multi-product retailer strategy.

As the largest private investor in renewable energy, we will continue to lead the business of transition to a clean energy future.

In 2020, we delivered our Climate Statement, committing to net zero emissions by 2050. Under this commitment, we will continue to grow with the choice we’re giving customers for carbon neutral electricity and gas products and the electric vehicle market. At the generation end of our business, we will continue to invest in the technology that firms renewables, such as the large grid-scale battery we announced for Loy Yang.

AGL’s cash flow and financial position remain strong, with considerable headroom to fund large-scale investment opportunities and further capital management initiatives.

What impact will digital transformation have on your company?

At AGL we’ve been undergoing a digital transformation since 2016, which has set us up for a digital future and created value for our customers and our employees.

Our $300m Customer Experience Transformation (CXT) program continues to help us to continue providing innovative products and services that give customers more control over their energy.

Investing in our digital transformation has delivered customer growth, reduced complaints and facilitated the delivery of new products. It has also meant customers are now more likely to engage with us through our digital channels and the AGL app, which is very popular.

Although the CXT program is now complete, we know transforming our business and becoming ever more digital is not a one-off project.

How would you rate business, state and federal government performance this year?

I think 2020 will go down in history as one of the toughest years to do business or to be in government but, equally, one where our leaders acted decisively and with care for the good of the people and the nation. We’ve had lessons along the way of course but overall the performance has been equal to the demands of the crisis.

The high level of engagement and collaboration between business and government has been critical to the current level of success in getting the pandemic under control and acting to underpin the economy and set up the recovery.

Everyone has played their part; we have all worked together as best as we can under the difficult circumstances, but we also know it’s also not over yet.

What we still see happening around the world has shown us that we can’t be complacent, but equally I think we are all grateful to see how Australia has come through 2020, which is encouraging as we head into the new year.