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 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.
Brookfield Infrastructure 2021 ESG Report
Learn more about some of the measures we are taking and the positive impact we have made. This report outlines some of the current and future initiatives we are committed to addressing as part of our overall ESG strategy.
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.
Net Zero Asset Managers Initiative
Signatory to the Net Zero Asset Managers initiative consisting of a group of international asset managers committed to supporting the goal of net zero greenhouse gas (GHG) emissions by 2050 or sooner, emphasizing our alignment with the Paris Agreement.
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 IFRS Sustainability Alliance
Alliance Member of the IFRS Sustainability Alliance, 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, 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
Many of our real estate businesses voluntarily disclose environmental performance annually through participation in the Global Real Estate Sustainability Benchmark (GRESB).
Accounting for Sustainability
Members of Accounting for Sustainability (A4s), which seeks to inspire action through a knowledge-sharing network of leading CFOs from businesses aiming to embed ESG into resilient business models and sustainable strategies.
BSR
Members of Business for Social Responsibility (BSR), a global non-profit organization focused on working with companies to develop sustainable business strategies and solutions.
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