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 meritocracy, 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.
ESG Affiliations and Partnerships
Through our Manager, Brookfield Asset Management, we are engaged with leading ESG frameworks, actively involved in discussions to advance ESG awareness across private and public markets, and we are enhancing our ESG reporting and protocols in line with evolving best practices. Below are some of the leading frameworks and sustainability organizations with which we are affiliated.
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.
- 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
- 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
- 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