Brookfield Asset Management
Brookfield Asset Management is an asset management company with offices in the US, Canada, UK, Australia, Brazil, UAE, India, and China. It joined the Net Zero Asset Managers Initiative on 29 March 2021 and its initial target disclosure was published on 1 May 2022.
Percentage of assets covered by the Net Zero Asset Managers Commitment Statement
33% of total AUM (USD $147 billion)
Information on interim target(s) covering the proportion of assets to be managed in line with net zero
Portfolio coverage baseline
Our interim targets are for portfolio holdings where we have control, and therefore consolidate in accordance with The Greenhouse Gas Protocol.
Portfolio decarbonization reference target:
Reduce portfolio emissions by 66% in absolute terms.
Our Real Estate portfolio will use December 31, 2019 baseline data which is more representative of the business (pre-COVID emissions).
Allocation to climate solutions target
Allocation to climate solutions: Brookfield Renewable operates one of the world’s largest publicly traded, pure-play renewable power platforms with an installed capacity of 21 GW. We aim to develop an additional 21 GW of new clean energy capacity by 2030, doubling our portfolio to 42 GW.
In 2021, we launched the Brookfield Global Transition Fund which aims to accelerate the global transition to net zero by investing in the development and accessibility of renewable energy sources and the transformation of carbon-intensive businesses. As such, Brookfield Global Transition Fund has dual objectives of earning strong risk-adjusted returns and generating a measurable positive environmental change.
GHG scopes included:
We cover Scope 1 & 2 for all portfolio holdings under the control approach, using estimates when data is not available. We intend to include Scope 3 once data is available and of sufficient quality.
Net Zero Investment Framework
We will utilise Paris-aligned pathways and science-based methodologies to set targets. For Renewable Power, we will leverage the established Science Based Targets initiative (SBTi) power sector pathway while for our Real Estate portfolio we will use Carbon Risk Real Estate Monitor (CRREM).We intend to use the IEA Net Zero Emissions (NZE) 2050 scenario for most other asset classes. However, given the lack of comprehensive, robust and granular pathways currently available, our portfolios select the most appropriate pathways for their sectors.
Proportion of AUM committed:
The AUM in scope represents the emissions reduction targets for assets where we have identified credible net zero plans and targets and have control to implement emission reduction strategies and influence outcomes. Our intention is to increase the proportion of assets to be managed in line with net zero annually to reach 100% over time.
We are implementing actions based on PAII NZIF to effectively achieve portfolio alignment, meet targets and enable a broader transition towards net zero. Does not include $148 billion of AUM managed by our partner, Oaktree Capital Management, which carries out its investment activities independently from Brookfield Asset Management and is currently developing its own climate strategy.
Policy on coal and other fossil fuel investments:
We do not have a firm-wide exclusion on coal or other fossil fuel investments. For example, the objective of Brookfield Global Transition Fund is to provide capital to accelerate the transition to net zero. Therefore, we believe it is important to “go where the emissions are” and utilize our operating capabilities to drive value and impact by acquiring select coal and fossil fuel-based investments and setting them on a path to net zero consistent with Paris alignment.