Brookfield, “ESG Investing” Leader, Made Billions of New Investments in Fossil Fuel Infrastructure, Report Finds

Despite its “net zero” pledge, Brookfield affiliates invested in oil sands pipelines and a coal terminal; even Brookfield’s renewable energy arm is invested in fossil fuel infrastructure

WASHINGTON--(BUSINESS WIRE)--A report by UNITE HERE finds that Brookfield, one of the world’s largest alternative asset managers and a leader in ESG investing, has made billions of dollars of new investments in fossil fuel infrastructure through its affiliates since 2020 and that its well-publicized “net zero” pledge excludes most of the emissions associated with these investments. The report is available at BrookfieldClimateRealityCheck.org.

Brookfield holds $825 billion in assets under management and is known for its pledge to support net-zero emissions by 2050 and “Brookfield Global Transition Fund (BGTF),” which it called “the world’s largest private fund dedicated to facilitating the global transition to a net-zero carbon economy.”

But UNITE HERE’s analysis of public filings, news reports, and other documents found that Brookfield’s affiliated entities and funds have made billions of dollars of new investments in one of the world’s largest coal loading terminals, oil sands pipelines, natural gas pipelines, and other fossil fuel infrastructure since 2020. Brookfield claims to follow the Paris Aligned Investment Initiative’s Net Zero Investment Framework, but its investments run counter to the framework’s recommendation that investors should not make new investments in companies exploiting oil sands.

The report also finds that Brookfield’s “net zero” pledge excludes indirect emissions from its investments in fossil fuel transportation. These so-called “Scope 3” emissions come from the burning of fossil fuels transported through infrastructure that Brookfield affiliates own or are invested in, including oil sands pipelines and coal terminals. For example, a Brookfield affiliate is the largest shareholder in the Dalrymple Bay coal terminal in Australia, but the terminal’s emissions accounting excludes the burning of the coal that moves through the terminal. While the terminal pledges to “work closely with Brookfield” to achieve “net zero Scope 1 and Scope 2 greenhouse gas emissions” by 2050, it does not account for emissions from the later burning of the millions of tons of coal that are transported through the facility each year.

UNITE HERE’s report also finds that even Brookfield’s renewable power affiliate Brookfield Renewable, is invested in fossil fuel infrastructure. Brookfield describes Brookfield Renewable as a “Global Leader in Decarbonization” and “pure-play renewable power platform.” But an ESG-minded investor who chooses to invest in Brookfield Renewable after seeing it on lists of top green energy stocks might not know that it is invested in several infrastructure funds with fossil fuel investments, including in Canadian oil sands pipelines.

UNITE HERE, a labor union representing hotel and food service workers across the U.S. and Canada, learned of these fossil fuel investments and emissions reporting practices while researching Brookfield’s hotel investments.