Brookfield Corporation | Transition to Net-Zero at Brookfield Asset Management Inc.

Status
Withdrawn
AGM date
Previous AGM date
Resolution details
Lead filer
B.C. General Employee's Union
Resolution ask
Adopt or amend a policy
ESG theme
  • Environment
ESG sub-theme
  • Fossil fuel financing
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Financials
Company HQ country
Canada
Resolved clause
"RESOLVED that, further to its commitments under the Net Zero Asset Managers initiative, and in keeping with its desire to use the Brookfield Global Transition Fund to transition carbon intensive assets to net zero, Brookfield adopt a robust and science based policy on the phase out of coal and fossil fuel investments in line with a 1.5 degree Celsius scenario, with a specific commitment to meeting, at a minimum, any previous science based net zero or emissions reductions targets adopted by the previous owner of such carbon intensive assets."
Supporting statement
"Supporting Statement

Through its Global Transition Fund (BGTF), Brookfield dedicated $15 billion to accelerating the global transition to net zero, including through decarbonizing carbon intensive businesses. Brookfield does not have an exclusion policy on coal or fossil fuel investments, stating its belief that it must “go where the emissions are” to set coal and fossil fuel investments on a path to net zero. Brookfield recently announced plans to start a second BGTF, stating that it expects this business to increase to over $200 billion within 10 years.1 Brookfield is a signatory to the Net Zero Asset Managers (NZAM) initiative, which was founded by the following Network Partners: Asia Investor Group on Climate Change; CDP; Ceres; Investor Group on Climate Change, The Institutional Investors Group on Climate Change; and Principles for Responsible Investment (PRI). The Network Partners expect signatories to adopt a robust and science based policy in relation to fossil fuel phase out, but Brookfield has not done so. BGTF Funding of Carbon Intensive Acquisitions In addition to renewable power assets, Brookfield affiliate Brookfield Renewable is attempting to use the BGTF to purchase the Energy Markets business of Origin Energy, a publicly traded energy company in Australia. Origin’s Energy Markets business comprises Australia’s largest fleet of gas-fired peaking power stations, as well as Australia’s largest power station, the black coal-fired Eraring Power Station. Origin’s current Climate Transition Action Plan outlines Scope 1, 2 and 3 emissions reductions targets, both on an absolute and intensity basis, as well as Scope 1 emissions reduction targets that are linked to executive remuneration. For carbon intensive acquisitions, Brookfield Renewable states it will set net zero targets separate from its renewable power assets. Shareholders are concerned that where the BGTF is used to acquire coal and fossil fuel investments, Brookfield has no stated science based policy about the phase out of such assets. In order to support Brookfield’s stated intention to set these carbon intensive assets on a path to net zero, shareholders believe Brookfield should commit to meeting, at a minimum, any previous net zero or emissions reductions targets adopted by the asset’s previous owner."

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