Brookfield Asset Management

The financial institution assigns decision-making and oversight responsibility for its sustainability strategy to the highest governance body while the implementation of the strategy is delegated to specific functions, teams, or committees. It has a stewardship policy that supports environmental transitions and social best practices in line with its sustainability strategy. Furthermore, the institution has a publicly available policy statement committing to respect human rights and provides at least one example of how its products, services, and capital support climate adaptation and societal resilience. Additionally, it monitors its Scope 1-2 emissions and emissions resulting from its associated financing activities (Scope 3 category 15).

The financial institution has a publicly available policy statement committing to respect specific workers’ rights and expects its suppliers to do the same, with an opportunity to reference all ILO fundamental rights at work. While the institution identifies and prioritizes material sustainability impacts, it could enhance transparency by disclosing the objective criteria and evidence used in its materiality analysis. Furthermore, it could link performance criteria for remuneration at the senior executive level to specific sustainability targets and disclose a comprehensive list of trade associations of which it is a member.

There is an opportunity for the institution to disclose that it does not provide products, services or capital, neither to new fossil fuel projects nor to clients and investees undertaking such projects. Although it has time-bound and measurable targets for its provision of products, services and capital for “green” solutions, it could specify the share devoted to climate solutions.

It is recommended that the institution disclose the breakdown of clients or beneficiaries by income group and clarify processes to prevent divestment from low-income and lower-middle-income countries due to its sustainability strategies and targets. Its risk assessment process should incorporate risks related to ILO fundamental rights at work for those affected by its products and services, with a mitigation process for identified risks. Moreover, the institution could strengthen its disclosure by identifying the social risks associated with its financing activities in relation to net zero transition.

This scorecard refers to information in English which was publicly available by July 15 2024. AuM and Total assets are stated in USD for comparability and have been calculated based on reported local currency values multiplied by applicable IMF currency converter values.