How we build / 06

Capital allocation

We direct resources towards the strongest risk-adjusted long-term use.

What it covers

Capital allocation is a continuing responsibility. New investment competes with reinvestment in existing companies, reserves and other opportunities. The decision follows evidence, expected return, risk and timing.

Work in practice

01Compare uses of capital across the group

02Set return and risk expectations

03Sequence funding around evidence

04Revisit prior decisions when facts change

The principle

Support should solve a defined problem, build capability and leave accountability with the company.

Return to how we build