Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity and Inclusion
• Health and Safety
• Human Rights
• Community Engagement
• Governance
• Ethics

Environmental Achievements

• 20% decrease in retail energy consumption since 2013 (Brookfield Properties)
• Solar generation representing 8% of total energy consumption in retail business (Brookfield Properties)
• Brookfield Renewable is one of the lowest greenhouse gas emitters among global electricity generation companies, avoiding 25 million tons of carbon emissions annually compared to average emissions.
• Canary Wharf achieved 100% renewable electricity and zero waste-to-landfill since 2009.
• Multiplex Europe set a science-based target to achieve a 30% reduction in its carbon footprint by 2030 and aims for 100% renewable electricity use by 2020.
• 48 LEED certifications in North American office portfolio, 44 in U.S. office portfolio, 38 in U.S. and Canada, and 6 in Australian office portfolio (Brookfield Properties)
• Multiplex implemented innovative solutions to tackle single-use plastic, resulting in a 30% carbon saving on materials and recycling 10,000 sheets of waste material.

Social Achievements

• Created and implemented a global positive work environment policy (Brookfield)
• Introduced a leadership training program focusing on building trust and addressing unconscious biases (Brookfield)
• Established internal groups and networks, including a global Brookfield Women’s Advisory Committee (Brookfield)
• BRK Ambiental improved access to clean water and sanitation in Brazil, resulting in a 96% drop in acute water-borne illnesses between 2011 and 2018.
• Brookfield Renewable transferred 4.4 hectares of land to the Michipicoten First Nation, reuniting them with a sacred site.
• Brookfield partnered with Project Destined to mentor urban youth in real estate.
• Peak Infrastructure launched the “ZeroHarm” app to improve road safety in India.

Governance Achievements

• Formalized ESG management into board and committee mandates (Brookfield)
• Established an ESG Committee of senior executives to determine firm-wide ESG strategy (Brookfield)
• All Brookfield employees complete annual governance training seminars.
• Portfolio companies are required to adopt Brookfield's Code of Business Conduct and Ethics or have equivalent practices.
• Stringent conflict of interest and personal trading policies implemented (Brookfield).

Climate Goals & Targets

Environmental Challenges

• Climate change poses a serious threat to communities, businesses, and ecosystems.
• Physical risks of climate change on assets and businesses.
• Sourcing raw materials with the best sustainability and quality characteristics for Greenergy's biodiesel production.
• High number of accidents and fatalities on Indian highways.

Mitigation Strategies

• Measuring and reducing GHG emissions.
• Conducting climate change risk assessments.
• Offering solutions that support the transition toward a low-carbon economy.
• Implementing strategic energy efficiency measures.
• Developing lasting relationships with businesses to demonstrate traceability of biofuel sourcing.
• Launching the “ZeroHarm” app to improve road safety behavior and provide emergency support.

Supply Chain Management

Responsible Procurement

• Responsible Contractor Principles
• Anti-Slavery and Human Trafficking Policy

Climate-Related Risks & Opportunities

Physical Risks

• Adverse impacts of climate change on assets and businesses

Opportunities

• Transition to a low-carbon economy

Reporting Standards

Frameworks Used: GRESB

Certifications: LEED

Awards & Recognition

• Edie Leadership Award (Canary Wharf Group)
• Energy Star Partner of the Year Award (Brookfield Properties)

Environmental Metrics

ESG Focus Areas

• Sustainability
• Carbon Footprint
• Climate Change
• Safety
• Diversity and Inclusion
• Governance

Environmental Achievements

• Renewable power business reduced Scope 1 and 2 emissions by approximately 20% year over year. Avoided approximately 27 million metric tons of carbon emissions through renewable energy generation.

Social Achievements

• Increased female representation within the management team to 27% (from 20% in the previous four years) and 11% in senior management (from 6%). Became a signatory to the Principles for Responsible Investment (PRI).

Governance Achievements

• Significant investment in cybersecurity program, validated by a third-party assessment. Board Diversity Policy implemented, targeting 30% women on the independent director board. Continued work towards aligning with the Task Force on Climate-related Financial Disclosures (TCFD) recommendations.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions (implied by discussion of COVID-19 impact)
• Climate change related physical and transition risks
• Maintaining a strong safety culture across diverse global operations
• Managing reputational risks associated with portfolio companies
• Competition in the asset management industry
• Geopolitical risks and uncertainties in various markets
• Economic downturns and market volatility
• Catastrophic events (including pandemics)
• Interest rate risk
• Liquidity risks
• Human capital risks (attracting and retaining talent)
• Regulatory compliance and potential investigations
• Tax reassessments and changes in tax laws
• Foreign exchange rate fluctuations

Mitigation Strategies

• Significant liquidity maintained at the corporate and subsidiary levels. Prudent financing approach with minimal recourse debt. Active risk management framework and methodology. Strong governance practices and oversight committees. ESG initiatives and reporting. Cybersecurity investments. Disciplined investment approach with downside protection. Global diversification of investments. Business continuity plans. Hedging strategies for financial exposures. Focus on attracting and retaining high-caliber employees. Robust compliance programs and procedures.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Flooding
• Rising sea levels

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products and services
• Growth in renewable energy sector

Reporting Standards

Frameworks Used: PRI (Principles for Responsible Investment), TCFD (Task Force on Climate-related Financial Disclosures)

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Renewable energy projects

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Sustainability
• Employee Well-being and Safety
• Governance
• Community Relations

Environmental Achievements

• Fully allocated green bond proceeds to eligible green projects.
• Significant carbon emission, energy, and water savings across multiple properties (quantified in Impact Metrics section).

Social Achievements

• Foster a positive work environment based on respect for human rights, 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.

Governance Achievements

• 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.

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Green Bond Principles 2021, SASB Engagement Guide

Third-party Assurance: Deloitte LLP

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy
• GHG emissions
• Water
• Waste management
• Wellness
• Sustainable development
• Biodiversity
• Tenant engagement
• Community engagement
• Diversity and inclusion
• Employee health, safety and well-being
• Employee engagement
• Philanthropy
• Respect for human rights
• Executive management of ESG
• Ethics, integrity, anti-corruption and bribery
• Transparency and reporting
• Vendor selection
• Regulatory compliance
• Data privacy
• Cybersecurity
• Risk assessment and management
• Responsible contracting
• Public policy

Environmental Achievements

• Reduced GHG emissions by 355,000 metric tons through GHG emissions-free electricity procurement in the U.S. office portfolio.
• Avoided more than 95,000 metric tons of GHG emissions since 2014 through onsite solar capacity in the retail portfolio.
• Reduced annual grid GHG emissions by over 130,000 metric tons through solar panel installation in the logistics portfolio.
• Achieved 600+ green building certifications.

Social Achievements

• Launched Partner to Empower program, resulting in 47 retail stores opened or under construction.
• 46% of hires in 2022 were female.
• 40% of employee population in Australia, Canada, the U.K. and U.S. is ethnically diverse.

Governance Achievements

• Developed a global ESG Policy.
• Established a Net Zero Committee.
• Implemented an Environmental and Climate Metrics Policy.

Climate Goals & Targets

Environmental Challenges

• Climate change risks (physical and transition)
• Scope 3 emissions (particularly from tenants)
• Data collection challenges across a large global portfolio.

Mitigation Strategies

• Comprehensive climate risk assessment and mitigation strategies.
• Incorporation of green lease clauses.
• Partnership with third-party ESG data providers.
• Development of internal policies and reporting requirements (e.g., Environmental and Climate Metrics Policy).

Supply Chain Management

Responsible Procurement

• Vendor Code of Conduct
• Supplier diversity program

Climate-Related Risks & Opportunities

Physical Risks

• Heat waves
• Droughts
• Flooding
• Sea-level rise
• Wildfires
• Landslides

Transition Risks

• Carbon pricing
• Net-zero benchmarks
• Regulatory changes
• Shifting tenant preferences

Opportunities

• Clean energy procurement
• Energy efficiency improvements
• Development of resilient assets

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 5: Gender Equality
• Goal 6: Clean Water and Sanitation
• Goal 7: Affordable and Clean Energy
• Goal 9: Industry, Innovation and Infrastructure
• Goal 10: Reduced Inequalities
• Goal 11: Sustainable Cities and Communities
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action
• Goal 14: Life Below Water
• Goal 17: Partnerships for the Goals

Brookfield's ESG initiatives contribute to these SDGs through various programs and strategies outlined in the report.

Awards & Recognition

• GRESB awards (various portfolios)
• Other awards mentioned in the report (specific properties)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Tenant Engagement
• Community Engagement
• Occupational Health and Safety
• Human Rights
• Biodiversity
• Water Conservation
• Waste Reduction

Environmental Achievements

• Reduced scope 1 and 2 absolute GHG emissions by 15% against base year 2019
• 96% asset-level GHG emissions measurements across the entire portfolio
• 749,000 MWh of renewable energy consumed globally
• 850+ green building certifications achieved
• U.S. core office portfolio to be powered by clean electricity by the end of 2026
• Programmatic agreement with Brookfield Renewable to install rooftop solar panels on select logistics facilities in the U.S., adding over 190 MW of solar generation capacity

Social Achievements

• Partner to Empower Program supported over 260 businesses, with over 65 stores signing leases
• Brookfield employee impact of $2.9 million
• 41% of employee population in Australia, Canada, the U.K. and U.S. is ethnically diverse
• WELL Health Safety Rated certifications across senior housing portfolio
• Pink Bag Events supporting breast cancer patients and survivors

Governance Achievements

• TCFD disclosure included in the 2023 Sustainability Report
• Average global GRESB score of 84 in the Standing Investments Benchmark and 92 in the Development Benchmark
• 93% PRI Direct Real Estate Score

Climate Goals & Targets

Environmental Challenges

• Data quality and availability challenges related to climate risk assessment
• Evolving criteria for high-quality carbon offsets
• Managing climate-related risks across a diverse and decentralized portfolio
• Addressing tenant emissions (scope 3 category 13)

Mitigation Strategies

• Refined climate risk methodology and assessment screens
• Active engagement with portfolio companies on decarbonization strategies
• Leveraging Brookfield’s broader businesses (Renewable, Growth, Global Transition funds)
• Collaboration with tenants to influence and reduce overall building emissions

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Responsible Contractor Policy (U.S.)
• Vendor Code of Conduct
• Focus on minority-owned, female-owned, and veteran-owned businesses

Climate-Related Risks & Opportunities

Physical Risks

• Heat stress
• Coastal flooding
• Sea level rise
• Drought
• Landslides
• Wildfires

Transition Risks

• Increased operating costs due to carbon pricing
• Market implications of not meeting net-zero benchmarks
• Market value implications of operating in jurisdictions with poor low-carbon transition readiness

Opportunities

• Enhanced property valuation due to low GHG emission intensities
• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UN SDGs, NZAM, PRI

Certifications: LEED, WELL, BREEAM, Energy Star, NABERS

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 5: Gender Equality
• Goal 6: Clean Water and Sanitation
• Goal 7: Affordable and Clean Energy
• Goal 9: Industry, Innovation and Infrastructure
• Goal 10: Reduced Inequalities
• Goal 11: Sustainable Cities and Communities
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action
• Goal 14: Life Below Water
• Goal 17: Partnerships for the Goals

Mapping of Brookfield's sustainability principles to relevant SDGs

Sustainable Products & Innovation

• Net-zero homes
• Energy-efficient office buildings
• Logistics properties with rooftop solar panels

Awards & Recognition

• Canadian Home Builders' Association Qualified Net Zero Home Builder distinction