“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 2020 ESG Report
Download our latest report to learn more about our ESG approach and initiatives.
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.
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.
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.
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.
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 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.
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.
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.
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
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
Powering the Transition to Net Zero
Net zero is not only a global imperative—it’s an attractive opportunity.
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.
Infrastructure
Keeping Plastics out of Rivers and Seas
PD Ports is the first U.K. port to sign up to Operation Clean Sweep.
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.