Enterprise Risk Management is core to ACEN’s strategic planning process. Key risks that could affect the achievement of the company’s goals are considered in strategy setting while the mitigation plans for top risks are included in the key result areas for the relevant business units.

The past few years have been very volatile, because of the pandemic, the global thrust towards energy transition, supply chain challenges, and recently the Ukraine crisis. As such, ACEN conducts semiannual planning sessions to review company performance, revisit targets, and recalibrate strategies as needed, depending on new and emerging risks and opportunities identified.

The Enterprise Risk Management process is driven by the Chief Risk Officer and guided by the Board Risk Management and Related Party Transaction Committee of the Board of Directors. For sustainability-related issues and risks, the Sustainability Committee also provides oversight.

ACEN is also a member of Ayala Corporation’s ERM council, enabling ACEN to continuously improve on its enterprise risk management processes which includes adopting best practices and aligning with international standards for risk management.

ACEN is strengthening its approach to risk management through research and by consulting with risk management experts, including on improved disclosures over the management of material climate risks. The recent adoption of the Task Force on Climate-Related Financial Disclosures (TCFD) framework also guides management discussions on the identification of key climate risks and opportunities affecting ACEN’s operations, projects, and organization.