“We operate long-term assets and businesses across the globe. This approach dictates both our investment strategy and our commitment to environmental, social and governance (ESG) practices. 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.”
Brookfield's 2019 ESG Report
To learn more about some of the measures we are taking and the positive impact we have made, you may download our latest report outlining our recent environmental, social and governance strategy and initiatives.
Our ESG principles are embedded throughout our operations and help us ensure that our business model will be sustainable well into the future.
Ensure the well-being and safety of employees
- Employee well-being: Meet or exceed all applicable labor laws and standards in jurisdictions where we operate, which includes respecting human rights, offering competitive wages and implementing nondiscriminatory hiring practices.
- Health & safety: Aim to have zero serious safety incidents within our businesses by working toward implementing consistent health and safety principles across the organization.
Be good stewards in the communities in which we operate
- Community engagement: Engage with community groups that might be affected by our actions to ensure that their interests, safety and well-being are appropriately integrated into our decision-making.
- Philanthropy: Encourage our employees to participate in the communities in which we operate.
Mitigate the impact of our operations on the environment
- Environmental stewardship: Strive to minimize the environmental impact of our operations and improve our efficient use of resources over time.
Conduct business according to the highest ethical and legal/regulatory standards
- Governance, ethics, and fairness: Operate with high ethical standards by conducting business activities in compliance with applicable legal and regulatory requirements, and with our Code of Business Conduct and Ethics.
- Transparency: Be accessible to our investors and stakeholders by being responsive to requests for information and timely in our communication.
ESG Frameworks and Memberships
PRI
Brookfield is a signatory of the Principles for Responsible Investment (PRI), formally demonstrating our ongoing commitment to responsible investment and environmental, social and governance (ESG) best practices. The PRI is one the world’s leading proponents of responsible investing, with an emphasis on understanding the investment implications of ESG factors and supporting an international network of investor signatories in incorporating these factors into their investment and ownership decisions.
SASB
The Sustainability Accounting Standards Board (SASB) connects businesses and investors on the financial impacts of sustainability. SASB Standards enable businesses to identify, manage, and communicate financially material sustainability information to investors. SASB Standards are industry-specific and are designed to be decision-useful for investors. They are developed using a process that is evidence based and market informed.
A4S Accounting for Sustainability
The Prince’s Accounting for Sustainability Project (A4S) was established by HRH The Prince of Wales in 2004 to mobilize action and leadership by the finance and accounting community to address the challenges to the economy and society posed by issues such as climate change, increasing depletion of and demand for natural resources, urbanization and inequality. A4S seeks to inspire action by finance leaders to drive a fundamental shift towards resilient business models and a sustainable economy.
BSR
A global nonprofit organization, BSR works with its network of more than 250 member companies and other partners to build a just and sustainable world. From its offices in Asia, Europe, and North America, the nonprofit develops sustainable business strategies and solutions through consulting, research, and cross-sector collaboration.
Integrating ESG considerations into our investment process
Our PRI commitments include incorporating ESG factors into our investment decisions, starting with the due diligence of potential investments through to the exit process. We tailor ESG due diligence to each investment, and we create post-investment remediation plans for material ESG considerations. For all potential investments, we use internal experts and a variety of ESG frameworks to identify material ESG factors and utilize external consultants where appropriate. This analysis includes everything from ensuring environmental, legal and regulatory compliance to the identification of opportunities to add value or mitigate risk in our portfolio. Our investment teams use an ESG due diligence guideline to ensure consideration of material ESG risks and opportunities. These teams then provide a detailed memorandum to the Investment Committee outlining the merits of the transaction and disclosures relating to risks, including material ESG issues, and potential mitigation strategies. All investments made by Brookfield must be approved by the Investment Committee and must incorporate ESG matters into their evaluation, including anti-bribery and corruption, health and safety, and other ESG considerations.
Upon company acquisition, we create a tailored integration plan to ensure that all material matters, including ESG risks and opportunities are prioritized. ESG risks and opportunities are actively managed by the portfolio companies with guidance from our in-house investment teams, primarily through representation on company boards and equivalent oversight bodies where all financial, operational, and strategic elements of the business are reported, considered, and where appropriate, approved. This allows us to draw on local expertise, which provides valuable insight given the wide range of asset types and locations in which we invest. Certain key performance indicators, such as serious safety incidents, are reported regularly to the applicable board or other oversight body.
A strong governance framework
We are always working to maintain sound governance practices to ensure ongoing investor confidence. This involves a continual review of how evolving legislation, guidelines and best practices should be reflected in our approach. For example, we have a zero-tolerance approach to bribery, including facilitation payments, and all Brookfield employees are mandated to complete an in-depth anti-bribery and corruption (ABC) training seminar annually. Brookfield maintains an ethics hotline to report suspected unethical, illegal or unsafe behavior. The reporting website can be accessed through this link. Our reporting hotline is managed by an independent third party and is available 24 hours a day, 7 days a week. We also require all portfolio companies in which we have a controlling interest to adopt an ABC policy that is equally stringent to Brookfield’s, which entails that portfolio companies install an ethics hotline within six months of acquisition.
Health and safety in our portfolio companies
Employee health and safety is a top priority at Brookfield. We view health and safety as an integral part of the management of our business and therefore consider it a line responsibility best managed by portfolio companies. We have established a safety steering committee, which includes the CEOs and COOs of each business group, to promote common values and a strong health and safety culture, share best practices and monitor serious safety incidents. In the event that a serious incident does occur, Brookfield conducts an in-depth investigation to determine root causes and formulate remediation actions.
Fostering diversity & inclusion
Embedded in our culture is a commitment to advancing diversity and inclusion across our organization. This begins at recruitment, continues in leadership training programs and is woven into our policies and procedures. As a global firm, we know that the best ideas come from having people from different backgrounds, perspectives, experiences and skills across all businesses, levels of seniority and offices.
Training programs set clear expectations for our leaders in terms of their role in helping all team members achieve their potential. The training emphasizes building trust with their teams, becoming aware of unconscious biases and provides guidance on how to add rigor to decision-making especially in recruiting, performance feedback and promotion, with the goal of creating a more diverse and inclusive environment.
Our internal groups and networks, including a global Brookfield Women’s Advisory Committee and a Diversity Advisory Committee, actively advise management on how to make our Firm more welcoming to people from diverse backgrounds.
Women make up:
A commitment to green buildings
Developing properties that take environmental considerations into account is not only a passion, it provides returns on our investments. That’s why 100% of our new developments are being built according to LEED® Gold standards, to proactively address greenhouse gas emissions, energy efficiency, water use, indoor air quality, and other impacts.
Sustainable finance
Brookfield strives to be a leader in sustainable finance products, which support adaptation to global climate change challenges.
Community engagement and philanthropy
We recognize that activities that support growth and development include involvement in interests outside of day-to-day employment activities. We view our philanthropic activities as an opportunity to engage our people, support their development and be of benefit to the local communities in which we operate.
Our two-pronged global approach includes a global matching program that provides each employee the ability to donate to a not-for-profit of their choice and receive a match from the Firm as well as a capital pool for each office to support philanthropic activities that are important to our people and facilitate relationship building in support of collaboration.
Other ESG resources:
ENVIRONMENTAL
SOCIAL
Case studies
Recycling food waste sustainably
Purchasing waste oils from around the world to create clean, renewable biodiesel
Protecting biodiversity
Emulating a natural river and shoreline terrain to support migratory fish species in New York State.
Keeping plastic out of rivers and seas
Working with PD Ports to minimize plastic in our rivers and seas
A first-of-its-kind community solar initiative
Using solar to reduce electricity costs in affordable housing