02 Governance, Structure & People GOVERNANCE, STRUCTURE & PEOPLE OVERVIEW

CEFC ANNUAL REPORT / 2014–15

Governance, Structure and People

The CEFC is an Australian Government entity, and reports to Parliament through its Responsible Ministers. The CEFC is constituted as a Commonwealth statutory authority by the Clean Energy Finance Corporation Act 2012.

The governance structure of the CEFC is determined by:

  • The CEFC Act, and

  • The Public Governance, Performance and Accountability Act 2013, and

  • By policies, procedures and systems established by the Board and Management.

The CEFC Act provides for a governing Board made up of Australian Government appointees. These in turn appoint the Chief Executive Officer (a statutory officer) and staff, employed under such terms and conditions as the Board sees fit. 

The Corporation’s investment function is to invest in the clean energy technology areas of renewables, energy efficiency and other low emissions technologies.

The investment process is governed by the CEFC Act; an Investment Mandate from Responsible Ministers that sets out the direction to be taken by the CEFC in relation to risk and return; and Board-made Investment Policies.

The CEFC is funded by $10 billion of special appropriations through the CEFC Act, rather than through the annual Federal Budget process.

Ultimate authority resides in the Board, unless delegated to the CEO, or from the CEO to the Corporation’s staff. The Board has established two committees to assist it in governance of the Corporation: Audit and Risk, and Remuneration and HR.

The CEO has responsibility for the day-to- day management of the Corporation, and the Corporation has been structured with a leadership group of four supporting executives (collectively, ‘the Executive’).

The Executive is supported by the General Counsel and the CEO has established three committees to assist in day-to-day management: the Executive Investment Committee; the Asset Management Committee and the Executive Risk Committee.

During the reporting period, the Corporation had no subsidiaries.

A diagram illustrating the Corporation's structure is set out in Figure 22.

Figure 22: CEFC organisational structure 2014–15

After the close of the 2014-15 financial year, under revised AAOs of 21 September 2015, responsibility for the CEFC transferred to the Environment portfolio, under Responsible Ministers, the Hon Greg Hunt MP, Minister for the Environment, and Senator the Hon Mathias Cormann, Minister for Finance.