“We believe that value creation and sustainable development are complementary goals. Throughout our operations, we are committed to practices that have a positive impact on the communities in which we operate.”
Responsibility
Our 2022 Sustainability Report
Download our latest report to learn more about our sustainability approach and initiatives.
ESG at Brookfield
Our ESG strategy is centered on supporting business resilience and creating value for our investors and stakeholders—now and in the future.
OUR GUIDING ESG PRINCIPLES
Mitigate the impact of our operations on the environment
Strive to minimize the environmental impact of our operations and improve our efficient use of resources over time.
Support the goal of net-zero greenhouse gas (GHG) emissions by 2050 or sooner.
Ensure the well-being and safety of employees
Foster a positive work environment based on respect for human rights, valuing diversity, and having zero tolerance for workplace discrimination, violence or harassment.
Operate with leading health and safety practices to support the goal of zero serious safety incidents.
Uphold strong governance practices
Operate to the highest ethical standards by conducting business activities in accordance with our Code of Business Conduct and Ethics.
Maintain strong stakeholder relationships through transparency and active engagement.
Be good corporate citizens
Ensure the interests, safety and well-being of the communities in which we operate are integrated into our business decisions.
Support philanthropy and volunteerism by our employees.
Our Net-Zero Commitment
We are aligned with the global imperative of decarbonization and have set an ambition to achieve net zero across all our assets under management by 2050.
Affiliations and Partnerships
In support of advancing our ESG efforts, we align and engage with ESG frameworks and sustainability organizations.
Net Zero Asset Managers Initiative
Signatory to Net Zero Asset Managers initiative supporting the goal of net zero greenhouse gas emissions by 2050 or sooner, in line with global efforts to limit warming to 1.5 degrees Celsius; and to supporting investing aligned with net zero emissions by 2050 or sooner.
Task Force on Climate-related Financial Disclosures
Supporters of the Task Force on Climate-related Financial Disclosures (TCFD), which aims to guide companies in incorporating the considerations of the effects of climate change into business and financial decisions to help facilitate the transition to a more sustainable, lower carbon economy. Our inaugural TCFD disclosures are included in our 2022 Sustainability Report.
Principles for Responsible Investment
Signatory to the United Nations-supported Principles for Responsible Investment (PRI), underscoring our ongoing commitment to responsible investment and ESG best practices.
The IFRS Sustainability Alliance
Alliance Member of the IFRS Sustainability Alliance, a global membership program established to develop globally accepted accounting and sustainability disclosures, and whose industry-specific standards are designed to be evidence-based and market-informed, to further formalize the integration of ESG considerations into our due diligence process.
ILPA Diversity in Action
Signatory to the ILPA Diversity in Action (DIA) initiative, demonstrating our commitment to advancing diversity and inclusion, both within our organization and the private equity industry more broadly.
Sustainable Markets Initiative’s Private Equity Task Force
We are members of PESMIT, which works to bring together private equity firms to identify ways that the industry can accelerate progress towards a more sustainable future. Focusing on climate change, biodiversity and sustainability related metrics for private markets, it leverages expertise within each member firm and works with the other Sustainable Markets Initiative Task Forces.
Operating Principles for Impact Management
Through our Brookfield Global Transition Fund, signatory to the IFC’s Operating Principles for Impact Management, which provide a framework for investors for the design and implementation of impact management strategy.
Our annual disclosure statement and third-party verification can be found here:
ESG Integration into Our Investment Process
ESG is embedded throughout our investment process, starting with the initial due diligence through to the exit of the investment. Below is a summary of how we integrate ESG factors.
Due Diligence
We tailor ESG due diligence to each investment and follow a structured approach, leveraging relevant industry frameworks.
- Proactively identify material ESG risks and opportunities relevant to the potential investment
- Leverage our investment and operating expertise and utilize industry-specific guidelines that may incorporate SASB guidance
- Where warranted, perform deeper due diligence, working with internal experts and third-party consultants
- We enhanced our ESG due diligence guidelines to more specifically address climate change, human rights and modern slavery risks
Investment Committee Approval
All potential investments must incorporate ESG matters into their evaluation and be approved by the Investment Committee.
- Investment teams outline for the Committee the merits of each transaction and material risks, mitigants and significant opportunities for improvement, including those related to ESG
- Material ESG factors may include bribery and corruption risks, health and safety risks and environmental and social risks
Ongoing Management
Upon company acquisition, for assets where we have control, we create a tailored integration plan that includes any applicable material ESG-related matters for review and execution.
- Brookfield looks to advance ESG initiatives and improve ESG performance to drive long-term value creation, as well as to manage any associated risks
- It is the responsibility of the management teams within each portfolio company to manage ESG risks and opportunities through the investment’s life cycle, supported by the applicable investment team
Exit
- As part of divestiture, we create robust business plans outlining potential value creation deriving from several different factors, including relevant ESG considerations
- We also prepare both qualitative and quantitative data that summarize the ESG performance, where applicable, of the investment and provide a holistic understanding of how Brookfield has created value and managed the investment during the holding period
Building a Diverse and Inclusive Environment
Building a diverse, equitable and inclusive work environment reinforces our culture of collaboration and strengthens our ability to develop our people, maintain an engaged workforce and create value for our investors.
ESG in Action
Real Estate
Pollinators, the Honey Bees
Bees are a vital part of our ecosystem and urban communities. Providing a safe place to build their hives on our office property rooftops benefits not only the bees themselves, but also our communities.
Renewable Power
Tackling Reuse, Recycling and Recovery of Materials
Brookfield Renewable is working on opportunities to reuse, recycle or recover materials from major components in its solar, wind and hydro operations to support its goal of diverting these materials from landfills.
Infrastructure
Fostering Local Jobs and Employability
Providing training to unemployed community members.
Corporate
Let’s Save Lives Hackathon
As part of Brookfield’s IT Talent Development Program, in 2022, we hosted the Let’s Save Lives Hackathon event.
Renewable Power
An Onshore Wind Portfolio in One of Europe’s Strongest Wind Resource Locations
Ireland is a prime location for this wind portfolio, and a place where wind is a competitive source of electricity in a natural gas fired market.
Impact Investing
Building a Global Financial System for Net Zero
Net-zero transition plans are mainstreaming, driving demands for capital and solutions.
Private Equity
Schoeller Allibert: Making Packaging Too Good to Waste
Schoeller’s mission is to design and produce packaging products that respect the environment.
Infrastructure
Arc: Investing in Renewable Energy
Arc Infrastructure has replaced approximately 32 km of overhead power lines with a solar powered system.
Real Estate
The Partner to Empower Program: Promoting Meaningful Diversity
Partner to Empower supports Black and minority business owners at our retail locations.
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