Brookfield Asset Management

Carbon per million dollars of revenue. The legacy industry-standard reference (CDP, MSCI). Useful for cross-sector context, but distorted by margin — high-margin firms appear artificially efficient. Read alongside the operational and asset intensities for the full picture.

OpEx (operating expenditure) is the running cost of the business — staff, services, energy, materials. This shows how carbon-intensive operations are per million dollars of spend. Removes the margin distortion that revenue-based ratios introduce.

EVIC (Enterprise Value Including Cash) is the firm's total capital footprint — equity + debt + cash + minority interest. The EU's standard intensity measure (SFDR PAI 3) — answers: how much carbon does each million of capital deployed in this business produce?

PP&E (Property, Plant & Equipment) plus leased real-estate assets is the firm's physical infrastructure on the balance sheet. This shows the carbon intensity of that physical footprint — uses Scope 1+2+3 for consistency with the other headline intensities. Surfaces stranded-asset risk for asset-heavy firms.

Carbon per million dollars of physical infrastructure — PP&E plus leased real-estate, including upstream and downstream leased emissions (Scope 3 categories 8 + 13). The most complete view of physical-asset carbon intensity, relevant for REITs and infrastructure-heavy firms.

• · berkeley_voluntary_registry
• · CarbonPlan OffsetsDB

Brookfield manages one of the world's largest renewable power platforms through Brookfield Renewable Partners (BEP), with investments in hydroelectric, utility-scale solar, wind, distributed energy and storage. Fee-Bearing Capital in renewable power and transition grew to $67 billion in 2025 (from $58 billion in 2024), driven by $10.4 billion of inflows including final closes on BGTF II. Brookfield believes growing global demand for low-cost, low-carbon energy from corporate off-takers will drive continued investment opportunities. The BAIIF fund also targets AI infrastructure with an energy component.

Brookfield invests in carbon capture and storage solutions through portfolio companies including Entropy and NorthRiver. NorthRiver is progressing an acid gas injection project with capacity to sequester over 100,000 mtCO2e annually and two carbon sequestration hubs with aggregate capacity of an estimated three million mtCO2e. Brookfield's first Global Transition Fund resulted in 54,000 tons annually of carbon captured as of December 31, 2024. Where portfolio companies cannot reduce residual emissions, they may utilize high-quality carbon offsets to eliminate residual emissions after exhausting other feasible reduction means.

• Sustainability integration into investment due diligence process

  BAM's Sustainability Due Diligence Protocol provides guidance to investment teams on assessing bribery and corruption, cybersecurity, health and safety, human rights, modern slavery and climate-related risks at the investment stage. Investment Committees review material sustainability aspects and potential implications for returns. As part of each acquisition, investment teams develop customized integration plans encompassing material sustainability matters. Portfolio companies report to their boards including key performance indicators incorporating material sustainability factors.

• Decarbonization Steering Committee governance

  Sustainability oversight is sponsored by each business group CEO and sustainability leads, supported by Brookfield's COO (Governance, Operations and Risk Management), BAM's CEO of Renewable Power and Transition (Decarbonization and Investment), and BAM's CFO (GHG Reporting and Measurement). A Decarbonization Steering Committee and Decarbonization Operational Committee coordinate decarbonization initiatives across business and functional groups.

• Net Zero Steering Committee and decarbonization governance

  BAM operates a Net Zero Steering Committee that develops decarbonization targets, operationalizes decarbonization approaches and shares best practices across the organization. Sustainability considerations including climate change are integrated into investment due diligence through a Sustainability Due Diligence Protocol. BAM publishes an annual sustainability report aligned with TCFD, SASB, and GRI standards. A dedicated Safety Leadership Committee oversees health, safety, security and environmental matters.

• Energy efficiency and electrification in operationally managed portfolio companies

  BAM works with portfolio companies to identify operational value-enhancement and decarbonization opportunities, including energy efficiency and electrification measures. Operations teams collaborate closely with senior management to implement improvements. Decarbonization is framed as a meaningful operational efficiency lever that is expected to result in GHG reductions slightly ahead of industry and regional averages over time.

• Water, waste and biodiversity management in portfolio operations

  BAM seeks to utilize leading practices to efficiently monitor water usage and for certain portfolio companies manage performance, with the objective to seek opportunities for water consumption reduction. BAM also tracks waste and recycling metrics and encourages conservation of nature and ecosystem services as a component of achieving decarbonization goals and managing physical climate risks.

• Green-certified office buildings and corporate operations efficiency

  86% of Brookfield's corporate employees work in green-certified buildings, and over 80% work in offices owned by Brookfield Properties included in the net-zero interim target. Scope 1 emissions decreased 11% vs 2023 due to reduced natural gas consumption. Scope 2 market-based emissions decreased 12% via purchase of renewable energy certificates.

• Real estate retrofits, electrification and energy efficiency

  Approach to decarbonizing real estate includes: (1) procuring clean energy, (2) implementing retrofits and operational energy reduction initiatives, and (3) considering carbon offsets. Examples include Waterside Plaza window/HVAC replacement projected to avoid over 1,000 mtCO2e annually, and the LED Lighting Program retrofitting 1.4M sf in 2024 saving ~860,000 kWh and 315 mtCO2e. La Trobe Financial transitioned to 100% renewable electricity in Sydney/Melbourne via CPPA with Momentum Energy, achieving 72% reduction in electricity-associated emissions.

• Net Zero Steering Committee operationalizing decarbonization across the organization

  BAM has established a Net Zero Steering Committee that develops decarbonization targets, operationalizes decarbonization approaches and shares best practices across the organization. A Decarbonization Operational Committee and Sustainability Working Group further coordinate initiatives. The CFO oversees GHG reporting and measurement and the CEO of Renewable Power and Transition oversees decarbonization investment strategy.

• Portfolio company TCFD-aligned climate risk assessment and sustainability due diligence protocol

  Brookfield has implemented a TCFD-aligned climate risk assessment process to understand physical and transition risk profiles across its businesses. As part of its Sustainability Due Diligence Protocol, investment teams assess climate change risks at the point of acquisition and create tailored integration plans for material sustainability matters. Portfolio company management teams regularly report to boards on GHG emissions and environmental management KPIs, with the CFO overseeing GHG reporting and measurement. The approach distinguishes between controlled investments (where Scope 1 & 2 targets apply) and non-controlling interests (stewardship and engagement approach).

• GHG emissions reduction across $201B AUM portfolio — 50% target from 2020 base (NZAM)

  As a signatory to the Net Zero Asset Managers initiative since 2021, Brookfield has committed to reduce emissions across $201 billion of AUM by at least 50% from a 2020 base year, increased from $147 billion in 2022. The target includes Scope 1 and 2 emissions of portfolio companies across renewable power & transition, infrastructure, private equity, and real estate. The firm focuses on investments where it has control and can implement actionable near-term initiatives that are value accretive. Progress is supported by the Net Zero Steering Committee and dedicated sustainability working groups.

• Sustainable solutions including nuclear, RNG, CCS and SAF

  Within the renewable power and transition strategy, Brookfield invests in sustainable solutions including nuclear services, renewable natural gas, carbon capture and storage, recycling, cogeneration, biomass, power transformation, and sustainable aviation fuel. These investments are managed through portfolio companies and represent Brookfield's approach to hard-to-abate sector decarbonization across its managed assets.

• Portfolio company sustainability integration

  Brookfield integrates sustainability considerations into the investment process at due diligence, investment committee approval, ongoing management, and exit. Portfolio company management teams are responsible for managing sustainability opportunities and risks across the investment lifecycle, supported by Brookfield investment teams. KPIs reported to boards increasingly include GHG emissions alongside health & safety and environmental management.

• Renewable Power and Transition investment strategy as a climate lever

  BAM manages $143 billion of AUM and $67 billion of Fee-Bearing Capital in renewable power and transition investments. The Brookfield Global Transition Fund (BGTF) series invests to accelerate the global transition to a net-zero carbon economy, assisting utility, energy and industrial businesses to reduce CO2 emissions and expand low-carbon energy production. The Catalytic Transition Fund directs capital into clean energy in emerging markets. BEP is one of the world's largest publicly traded renewable power platforms with market cap of over $20.5 billion.

• Circular economy and recycled materials

  Portfolio companies are scaling circular economy solutions. Schoeller Allibert partnered with Coca-Cola Europacific Partners to produce beverage crates using 97% recycled plastic, cutting CO2 emissions by an estimated 66% compared with virgin plastic. Clarios operates a closed-loop battery collection system, enabling up to 99% of battery materials to be responsibly recovered, recycled and reused.

• Midstream natural gas repurposing for hydrogen / lower-carbon fuels

  Fossil fuel-related investments represent less than 10% of AUM. Brookfield believes midstream assets, with their extensive critically located fixed infrastructure, can be repurposed to carry newer fuel types such as hydrogen. Approach for fossil fuel investments includes decarbonizing, repurposing, repositioning, maintaining in-line with energy demand, or phase-out depending on circumstances.

• Stewardship and engagement with non-controlled investments

  For non-controlling investments (debt holdings or where contractual influence is limited), Brookfield actively monitors performance and uses stewardship and engagement practices to encourage sustainability outcomes aligned with its approach. Proxy voting is a small share of activity (~1% of AUM, via Public Securities Group as of December 31, 2024) given Brookfield's preference for control or significant-influence private market positions.

• Sustainability due diligence protocol integrated into acquisition and investment process

  BAM's Sustainability Due Diligence Protocol provides investment teams with specific guidance on assessing climate-related risks in new investments. Sustainability factors including GHG emissions are increasingly incorporated into KPIs reported to portfolio company boards. Prior to divestiture, BAM prepares qualitative and quantitative sustainability performance data to summarize environmental management during the holding period, creating market incentives for investee improvements.

• Portfolio company decarbonization engagement via Achieving Net Zero Framework

  Brookfield actively engages ~63% of AUM categorized as Operationally Managed via the Achieving Net Zero Framework (ANZF) and Net Zero Playbook. In 2024, ~15% of portfolio companies advanced their position along the ANZF. Over 120 portfolio companies reported decarbonization-related cost savings in 2024. Brookfield aligns with the Paris Aligned Investment Initiative (PAII) Net Zero Investment Framework (NZIF) methodology. $325B AUM is included in the in-scope net-zero interim target (49% of Operationally Managed AUM, up from 42%).

• Transition capital mobilization via Global Transition Funds

  Brookfield Global Transition Funds I and II have raised over $30B for investments in clean energy capacity, sustainable solutions, and transforming carbon-intensive portfolio companies. BGTF I produced 4,867,593 MWh of clean energy and 54,000 tons of carbon captured as of Dec 31, 2024. The Catalytic Transition Fund (CTF), created with ALTÉRRA, targets emerging markets. Combined funds expected to raise $40B equity capital. For BGTF investments, Brookfield sets GHG emissions reduction targets aligned with Paris Agreement goals for 100% of carbon-intensive investments, including scope 1, 2 and material scope 3.

• Brookfield Global Transition Fund (BGTF) — transition capital deployment for high-emitting sectors

  BAM manages BGTF I ($15B raised in 2022) and BGTF II (in fundraising, ~$5.2B raised in 2024) focused on investments that accelerate the transition to a net-zero economy. Funds invest in clean energy expansion, carbon capture and storage, waste recycling, and transforming carbon-intensive sector companies to sustainable business models. BAM explicitly does not pursue divestment of high-emitting industries, preferring to support their decarbonization.

• Stewardship and engagement with portfolio companies on decarbonization pathways

  Brookfield utilizes its significant influence and owner-operator capabilities to encourage sound sustainability practices across portfolio companies, focusing on net-zero efforts where there is the best opportunity for meaningful outcomes. The firm shares best practices and resources and conducts regular systematic monitoring to track progress. For non-controlling investments, stewardship practices are used to encourage sustainability outcomes aligned with Brookfield's approach. Water, waste and biodiversity management are also integrated into portfolio company monitoring, with industry best practices applied to reduce water consumption and track recycling metrics.

• Catalytic Transition Fund and BGTF II — Deploying capital in industrial decarbonization and emerging markets

  Brookfield's flagship Global Transition Fund series (BGTF I and BGTF II launched in 2023) catalyzes businesses onto net-zero pathways aligned with the Paris Agreement — developing new clean energy capacity, scaling sustainable solutions, and providing transformation capital to carbon-intensive sectors. The Catalytic Transition Fund, announced at COP28 with UAE's ALTÉRRA anchoring with $1 billion (alongside a $2 billion commitment to BGTF II), deploys capital exclusively in emerging and developing markets with a focused mandate on energy transition, industrial decarbonization, sustainable living and climate technologies.