“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 2023 Sustainability Report
Download our latest report to learn more about our sustainability approach and initiatives.
Sustainability at Brookfield
Our sustainability strategy is centered on preserving and creating value for our investors and stakeholders—now and in the future.
OUR GUIDING SUSTAINABILITY PRINCIPLES
Mitigate the impact of our operations on the environment
Strive to minimize the environmental impact of operations and improve our efficient use of resources over time.
Support the goal of reaching net-zero greenhouse gas (GHG) emissions by 2050 or sooner.
Strive to 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 acheiving 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
Seek to 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 goal 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 sustainability efforts, we align and engage with sustainability frameworks and organizations.
Net Zero Asset Managers Initiative
We have been a signatory to the Net Zero Asset Managers (NZAM) initiative since 2021 and are committed to supporting the ambition of achieving net-zero GHG emissions by 2050 or sooner, emphasizing our alignment with the Paris Agreement.
Task Force on Climate-related Financial Disclosures
In 2021, we became supporters of the Task Force on Climate-related Financial Disclosures (TCFD). The TCFD aims to guide companies in incorporating considerations relating to the effects of climate change into business and financial decisions to help facilitate the transition to a more sustainable, lower-carbon economy. We have issued our TCFD disclosures again this year in our 2023 Sustainability Report.
Principles for Responsible Investment
We have been signatories to the Principles for Responsible Investment (PRI) since 2020, which reinforces our long-standing commitment to responsible investment and sustainability best practices.
The IFRS Sustainability Alliance
We are members of the IFRS Sustainability Alliance (IFRS), 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. Where appropriate, we may utilize the SASB Engagement Guide as part of our investment due diligence protocols, to help identify sector-specific considerations in identifying material climate risks and opportunities
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 (SMI) Asset Manager and Asset Owner (AMAO) Task Force
We have been involved with the Sustainable Markets Initiative's (SMI) Asset Manager and Asset Owner (AMAO) Task Force. This initiative focuses on scalable ways for institutional investors to allocate capital toward sustainable solutions.
Operating Principles for Impact Management
Brookfield is a signatory to the Operating Principles for Impact Management, which provide a framework for investors for the design and implementation of impact management strategy.
Our annual disclosure statement, outlining the alignment of Brookfield’s Impact Measurement and Management (IMM) Framework for our Transition funds, and third-party verification can be found here:
Integrating Sustainability into Our Investment Process
We seek to embed material sustainability considerations and evaluate risks and value creation opportunities throughout our investment process. Following acquisition, we actively look to advance sustainability initiatives and improve sustainability performance in driving long-term value creation throughout the investment's life cycle. Our investment processes align with the PRI.
Due Diligence
We tailor sustainability due diligence to each investment and follow a structured approach, leveraging relevant industry frameworks.
- Seek to assess sustainability-related opportunities and risks and factor them into the overall investment decision.
- Leverage leading industry guidance to identify sustainability factors most likely to materially impact the financial condition or operating performance of companies in a sector.
- As part of our Sustainability Due Diligence Protocol, we provide specific guidance to investment teams on assessing bribery and corruption, cybersecurity, health and safety, human rights, modern slavery and climate-related risks.
- Where warranted, perform deeper due diligence, working with internal experts and third-party consultants.
Investment Committee Approval
All potential investments must incorporate sustainability 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 sustainability.
Ongoing Management
Upon company acquisition, for assets where we have control, we create a tailored integration plan that includes any applicable material sustainability-related matters for review and execution.
- It is the responsibility of the management teams within each portfolio company to manage sustainability risks and opportunities through the investment’s life cycle, supported by the applicable investment team.
- Management teams regularly report to their respective boards of directors from both financial and operating perspectives, including key performance indicators that incorporate material sustainability factors, such as health and safety, environmental management, compliance with regulatory requirements, and, increasingly, GHG emissions.
Exit
- When preparing an asset for divestiture, we seek to outline potential value creation deriving from several different factors, including relevant sustainability considerations.
- Where applicable, we also prepare both qualitative and quantitative data that summarize the sustainability performance of the investment and provide a holistic understanding of how we have managed the investment during the holding period.
Our People
Culture is what defines Brookfield, and our culture has been critical to our success. It reinforces strong succession and ensures that we maintain an engaged workforce. Our employees drive our success and ensure that we deliver on our commitments to investors and other stakeholders. We seek to create a positive, open and inclusive work environment that enables employees to develop. The experiences our people receive at Brookfield keep them engaged and developing professionally.
Sustainability in Action
Infrastructure
Jumpstarting Female Trade Careers
Our portfolio companies support the development, advancement and inclusion of women in traditionally male-dominated roles within trade industries.
Renewable Power
Using Biodiversity Management Plans to Minimize Impact
For decarbonization initiatives to be sustainable, we need to consider opportunities and risks for nature.
Real Estate
Conserving Water Using Technology
Brookfield Real Estate aims to conserve water by focusing on efficient design, new technologies and retrofits that result in reductions in both outdoor and indoor water consumption.
Renewable Power
Local Solutions for Local Challenges
Each of our portfolio companies are empowered to develop community-related strategies and programs in collaboration with local businesses, bringing regionally specific experience and knowledge.
Infrastructure
Reducing the Risk of Powerline-Related Bushfires
Our Australian regulated utility business, AusNet, has operations in locations that exposes it to wildfire risk and has implemented step changes to manage bushfire risk on its network.
Renewable Power
Leveraging the Brookfield Ecosystem to Facilitate Decarbonization Opportunities
Brookfield Real Estate and Brookfield Renewable Power & Transition have formed an agreement to build solar and wind farms with battery storage, aiming to provide renewable energy to Brookfield India’s office tenants at par or at a discount to traditional energy costs in most cases.
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.
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