Brookfields Corporation

Under the Net Zero Asset Managers (NZAM) initiative, Brookfield has set a 2050 net-zero target for all of its assets under management (AUM). The initiative commits the company to set an interim target to manage a proportion of its assets in line with the net-zero goal, with targeted emissions reduction by 2030. Brookfield’s interim target applies to 33% of its total AUM. The target is to reduce portfolio emissions by 66% in absolute terms. The company also commits to reviewing this interim target at least every five years, with a view to increasing the proportion of AUM covered. Brookfield can improve its performance further by setting regularly spaced intermediate targets at five-year intervals. This will help the company incentivise near-term actions on its longer-term goals. 
 

Brookfield does not disclose in-use emissions intensity data or sufficient floor area and absolute in-use emissions data for the buildings in its portfolio in 2021 or previous years. As a result, it is not possible to provide a meaningful assessment of the company’s past emissions trend or projected future performance. 

The company has implemented a client engagement strategy that requires investors to develop a climate transition plan and disclose their scope 1 and 2 emissions. The company can improve in this area by setting clear targets for clients to reduce their greenhouse gas (GHG) emissions.  

Brookfield currently encourages clients to reduce their emissions through information sharing. For example, the company set up the Brookfield Global Transition Fund, which, through investors, has raised USD 15 billion to invest in a wide spectrum of decarbonisation technologies and partnerships. Brookfield can improve its performance by expanding its client engagement to include tenants and construction companies alongside investors. 

Brookfield has set a net-zero target for 2050. However, the company does not disclose enough emissions data to meaningfully assess this target. The company has set an interim target for 2030, but this does not apply to all of its AUM.  

Brookfield is focused on increasing renewable energy use by installing on-site renewables where possible, or procuring renewable energy where on-site renewables are less suitable. The company is also creating an energy traceability platform that allows tenants to access data to set and measure their own sustainability goals.  

Brookfield has installed 65.5 megawatts (MW) of on-site solar capacity. In 2021, the company spent USD 1.1 billion on ten Leadership in Energy and Environmental Design (LEED) Gold Certified building projects using funds raised through issuing green bonds. Regardless, the company still develops and manages natural gas pipelines, processing plants and storage units.  

Brookfield does not disclose sufficient data to analyse its past emissions intensity trend. The company is working with policymakers and industry leaders in Canada, the UK and the US to shape sustainability within the real estate sector.  

The company acknowledges climate change and has begun to make changes to transition its property portfolio. However, the company’s targets do not include scope 3 emissions. In addition, the company generates a proportion of its revenue through fossil fuel asset management. 

No evidence was found of Brookfield’s commitment to social dialogue or of the categories of stakeholders the company engages with on a just transition. Furthermore, no evidence was found to demonstrate the company’s ongoing social dialogue and meaningful engagement with affected stakeholders.  

No evidence was found of the company undertaking just transition planning to mitigate the social impacts of the low-carbon transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue and with stakeholders in its just transition planning. 

No public commitment by Brookfield was found stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found of the company’s action to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups. Additionally, no relevant disclosure was found of the company’s assessment of employment dislocation risks.  

No public commitment by the company was found stating its intention to re- and up-skill workers displaced by the low-carbon transition. Additionally, no evidence was found that the company re- and up-skills workers in a way that ensures gender balance and inclusion of vulnerable groups. 

Brookfield discloses that it offers pension and other post-employment benefit plans to employees of certain of its subsidiaries. However, no relevant disclosure was found to show if the company identifies impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders.  

No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers. 

While Brookfield commits to respecting human rights, there is no evidence that it commits, or expects its business relationships to commit, to respecting the ILO fundamental rights at work. Further, no evidence was found of the company’s process to identify, assess and mitigate salient human rights risks in its own operations and in its supply chain. Moreover, no evidence was found of the company disclosing the stakeholders whose human rights have been affected by its activities. The company does, however, have a grievance mechanism available to workers and external stakeholders to raise human rights concerns. 

Brookfield commits to respecting worker health and safety and expects the same commitment of its business relationships. However, no evidence was found that the company discloses quantitative information on health and safety for its workers. Further, no evidence was found of the company having a time-bound target for paying all its workers a living wage. The company discloses some indicators of workforce diversity, including the gender of its workforce by employee category. However, no relevant disclosure was found of additional indicators of workforce diversity. Additionally, there is no evidence to indicate that the company commits to promoting gender equality and women’s empowerment. 

While Brookfield discloses its global tax strategy, no relevant disclosure was found of the corporate income tax it pays in individual jurisdictions. The company does have a policy prohibiting bribery and corruption, and it includes corresponding clauses in its business relationship contracts. However, no relevant disclosure was found of the company’s personal data protection policy and lobbying and political engagement policy.