Responsibility

ESG 2020 Cover

Our 2020 ESG Report

Download our latest report to learn more about our ESG approach and initiatives.

“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.”

— Bruce Flatt, Chief Executive Officer

ESG at Brookfield

At Brookfield, sound ESG practices are integral to building resilient businesses and creating long-term value for our investors and other stakeholders.

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 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 support the goal of net zero greenhouse gas (‘GHG’) emissions by 2050.

Frameworks and Memberships

In support of advancing our ESG efforts, we align and engage with leading sustainability organizations and frameworks.

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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.

PRI Signatory 2021

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.

TCFD

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.

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The Sustainability Accounting Standards Board

Alliance Member of the Sustainability Accounting Standards Board (SASB), 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

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.

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GRESB

Most of our real estate office operations voluntarily disclose environmental performance annually through participation in the Global Real Estate Sustainability Benchmark (GRESB), an investor-driven organization assessing the sustainability performance of real asset sector portfolios and assets. All our reporting businesses continue to maintain their GRESB Green Star rating.
 

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Accounting for Sustainability

Members of Accounting for Sustainability (A4S), which seeks to inspire action through a knowledge-sharing network of leading CFOs from large businesses aiming to embed ESG into resilient business models and sustainable strategies. 

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BSR

BSR is a global non-profit organization focused on working with businesses to develop sustainable business strategies and solutions. We leverage their sustainability expertise to inform our overall approach and collaborate on a project basis as we continue to advance on our ESG journey.

Integrating ESG Considerations 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 incorporate SASB guidance
  • Perform deeper due diligence if required, utilizing internal experts and third-party consultants as needed

Investment Committee Approval

All potential investments must incorporate ESG matters into their evaluation and be approved by the Investment Committee.

  • Investment teams provide the Committee with a detailed memorandum
  • The Investment Committee memorandum outlines the merits of the 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, we create a tailored integration plan and ensure ESG risks and opportunities are actively managed.

  • As part of each acquisition, investment teams create tailored integration plans that include material ESG-related matters for review or execution
  • Brookfield actively 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 investment team responsible for the investment

Exit

  • As part of our divestiture plan, we prepare robust business plans outlining potential value creation from several different factors, including ESG considerations
  • We also prepare both qualitative and quantitative data that summarize the ESG performance of the investment and provide a holistic understanding of how Brookfield has managed the investment during the holding period

Diversity & Inclusion

A focus on diversity and inclusion reinforces our culture of collaboration and strengthens our ability to develop our people and maintain an engaged workforce who are focused on creating value for our investors.

ESG in Action

Windmill on hillside; white fluffy clouds in background
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.

Solar Field at Sunset
Impact Investing

Powering the Transition to Net Zero

Net zero is not only a global imperative—it’s an attractive opportunity.

Purchasing waste oils from around the world to create clean, renewable biodiesel
Private Equity

Recycling Food Waste Sustainably

Greenergy has implemented an innovative sustainability project at its two biodiesel manufacturing facilities on the east coast of England.

Teesport_UK_Environ
Infrastructure

Keeping Plastics out of Rivers and Seas

PD Ports is the first U.K. port to sign up to Operation Clean Sweep.

A solar cell array for affordable housing project
Real Estate

A First-of-its-kind Community Solar Initiative

Three rooftops have become the first downtown commercial locations to produce solar power for this purpose.

Additional ESG Resources

Our approach to ESG is vital to the success of our business. Our additional ESG resources are available to further demonstrate our ongoing efforts.