2024
Sustainability Report
Brookfield Business Partners
Introduction
Letter to Stakeholders About This Report
Brookfield Business Partners at a Glance Sustainability Highlights
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INTRODUCTION
Letter to Stakeholders
Our goal is to create long-term value for our unitholders. While recent market fluctuations and uncertainties
- including tariffs, stock market volatility and political developments may seem unsettling, it is not our first time managing through challenging periods. We believe that a continued focus on sustainability today positions us well to maximize value for all
As owners and operators of high-quality businesses that provide essential products and services, our sustainability practices are an integral part of our approach to investing in and operating businesses.
A consistent approach to value creation has enabled us to generate strong returns across economic cycles.
Over the past year, we have actively engaged with our operating companies on their decarbonization strategies and enhancements in greenhouse gas (GHG) emissions data quality. Systematic data collection and measurement have improved our understanding of emissions within our operations and highlighted opportunities for mitigation and implementation of more sustainable practices.
Our people are our most valuable asset and we prioritize their safety, well-being and development. The key pillars of our culture are mutual respect, teamwork and passion,
which are supported by our core values of collaboration, entrepreneurship and discipline. We remain focused on attracting the best talent and developing our people to their full potential.
We continuously monitor ongoing changes in areas that are critical to supporting our business and our stakeholders, including regulatory changes and market practices, and are committed to sharing our learnings and progress. Our sustainability program is guided
by industry frameworks such as the Global Reporting Initiative (GRI) and Task Force on Climate-related Financial Disclosures (TCFD), with ongoing monitoring of evolving standards such as the Canadian Sustainability Standards Board (CSSB) and related regulations that may affect
our business. We remain committed to supporting Brookfield's ambition to align to net-zero emissions by 2050 or sooner.
We are pleased to publish our annual sustainability report, and on behalf of the leadership team at Brookfield Business Partners, we thank you for your interest and support of the business. Please do not hesitate to reach out to any of us should you have any suggestions, questions, comments or ideas you wish to share.
Sincerely,
Letter to Stakeholders
About This Report Brookfield Business
Partners at a Glance
Sustainability Highlights
Sustainability at Brookfield
Business Partners
Governance
Environmental Sustainability
Our People
Appendices
stakeholders in the long term.
Anuj Ranjan
Chief Executive Officer
Cyrus Madon
Executive Chairman
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About This Report
This report covers the sustainability1-related activities at Brookfield Business Partners and its operations between January 1, 2024 and December 31, 2024, unless noted otherwise.
We referenced the Global Reporting Initiative (GRI) standards, the Sustainability Accounting Standards Board (SASB) standards and the Task Force on Climate-related Financial Disclosures (TCFD)2 in the establishment of our material3 topics.
We are monitoring updates to reporting standards which may impact our business including the Canadian Sustainability Standards Board's (CSSB) recently issued Canadian Sustainability Disclosure Standards (CSDS), which have been built from the standards issued by the ISSB.
These globally recognized frameworks, along with consideration of our stakeholders, informed the topics and priorities most important to our business. These topics are divided into three areas: Governance, Environmental Sustainability and Our People.
1 For the purposes of this report, sustainability refers to preserving and creating value by promoting long-term economic,
environmental and social considerations throughout our business.
2 In October 2023, the TCFD concluded that they have fulfilled their remit and disbanded. The IFRS Foundation (which includes the International Sustainability Standards Board (ISSB)) has taken over the monitoring responsibility of progress of companies' climate-related disclosures.
3 Throughout this report, we may refer to the term "material" and define it as potentially having a direct, substantial impact on the ability to create or preserve economic, environmental and/or social value for our business and stakeholders. The word "material" should not be equated to or taken as a representation concerning "materiality" of any particular sustainability factor under U.S. federal securities laws or any similar legal or regulatory regime globally.
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INTRODUCTION
Letter to Stakeholders
About This Report Brookfield Business
Partners at a Glance
Sustainability Highlights
Sustainability at Brookfield
Business Partners
Governance
Environmental Sustainability
Our People
Appendices
Brookfield Business Partners at a Glance
Our operations are diversified across industries and regions, with $75 billion in total assets, a team of 140 investment professionals and 61,000 operating employees around the world, giving us insight into a broad range of business activities. We organize our operations into the following three operating segments5,6:
INTRODUCTION
Letter to Stakeholders
About This Report Brookfield Business
Partners at a Glance
Sustainability Highlights
Brookfield Business Partners4 is the flagship listed vehicle of Brookfield's Private Equity Group focused on acquiring high-quality businesses, executing operational plans to improve performance and recycling capital to reinvest in the long-term growth of the business.
Our goal is to generate value through long-term capital appreciation. We create value by pursuing an operations-oriented approach, ensuring that all our operations have a clear, concise business strategy to support profitability and sustainable cash flows. Our financial discipline, coupled with access to large-scale institutional partner capital, global sourcing capabilities and the breadth of Brookfield's operational expertise, are integral to our success.
Business Services
$29B
Assets
Essential services business leveraging operational expertise and scale of the Brookfield platform
Infrastructure Services
$16B
Assets
Leading providers of products and services to large-scale infrastructure assets
Industrials
$30B
Assets
Operationally intensive businesses benefiting from strong competitive positions or low production costs
Sustainability at Brookfield
Business Partners
Governance
Environmental Sustainability
Our People
Appendices
4 Brookfield Business Partners ("BBU", "we", "our", "the Company") is the flagship private equity listed vehicle of Brookfield Asset Management, a global alternative asset manager with over $1 trillion in assets under management. Investors have flexibility to invest in our company either through Brookfield Business Partners L.P. (NYSE: BBU; TSX: BBU.UN), a limited partnership, or Brookfield Business Corporation (NYSE, TSX: BBUC), a corporation. "Brookfield" refers to Brookfield Corporation and its subsidiaries, or any one or more of them, as the context requires, other than entities within Brookfield Business Partners and unless the context otherwise requires, includes Brookfield Asset Management Ltd ("Brookfield Asset Management"). Brookfield serves as the manager of Brookfield Business Partners under a Master Services Agreement. Accordingly, many of the policies, practices and approaches adopted by Brookfield Business Partners reflect those of Brookfield.
5 Total assets presented as at June 30, 2025.
6 Figures are rounded for presentation purposes throughout this report.
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Sustainability Highlights
2024 HIGHLIGHTS
Net zero by 2050
Continued support for Brookfield's Net zero by 2050 or sooner ambition across Operationally Managed Investments.7,8 Refer to Brookfield's 2024 Sustainability Report for more information on progress and initiatives for 2024
Achieved
minimum of four out of five stars in each of the eight scored modules for Brookfield's PRI Assessment11
INTRODUCTION
|
40% female representation of independent Board of Directors at Brookfield Business Partners |
Engaged with 100% of our material controlled operations on decarbonization initiatives9 |
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4th year reporting scope 1 and 2 emissions for our operations |
40% of all Brookfield promotions in 2024 were female |
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42% diverse representation of Brookfield employee population10 |
100% of employees were trained on cybersecurity and anti-bribery and corruption |
Letter to Stakeholders
About This Report Brookfield Business
Partners at a Glance
Sustainability Highlights
Sustainability at Brookfield
Business Partners
Governance
Environmental Sustainability
Our People
Leveraged
Brookfield's Net Zero Playbook to support our operations with their decarbonization strategy
100%
of our operations have a Reporting Hotline
78,000 hours
of mandatory cybersecurity education completed across our operations
Achieved
zero serious safety incidents
Appendices
7 Brookfield's ambition is applicable to its Operationally Managed Investments. Operationally Managed Investments represent investments where Brookfield may be able to broadly influence and control decarbonization outcomes through a range of factors, such as governance rights and economic interest. Also included in this category are investments that have a transition mandate and investments where Brookfield has a more direct access to collaborate with the operating company and other significant owners of the business.
8 Net zero means reducing greenhouse gas (GHG) emissions to a minimal level of residual emissions that can be absorbed and stored by nature or other carbon removal methods, leaving zero in the atmosphere. Source: United Nations Climate Action.
9 Utilizing emissions reduction opportunities across a range of categories, which may include the procurement of clean energy, investing capital towards maintenance or growth capital expenditure projects that can result in more efficient emissions intensity, modifying or replacing traditional fossil fuel consuming processes with electrification methods, utilizing newer, lower-emitting technologies, including alternative sources of fuel, carbon capture and sequestration, and reducing or ceasing of activities contributing to GHG emissions.
10 Data reflects employee population in Brookfield's four largest offices - Australia, Canada, the U.K. and U.S. - as of April 1, 2025. Additionally, we have reported on Brookfield's Global Ethnic Diversity in Our People section of this report which reflects responses from employees who have self-identified their ethnicity across Brookfield's global offices.
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11 No compensation was provided in connection with scores provided by PRI. Brookfield provides PRI with annual fees which are payable by all signatories. Please refer to the PRI website (unpri.org) for information on the PRI's reporting assessment.
Sustainability at Brookfield
Business Partners
Our Sustainability Policy
Integrating Sustainability Into Our Investment Process Stakeholder Engagement and Stewardship Sustainability Affiliations and Frameworks
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Our Sustainability
Our Sustainability Policy is based on the following principles:
Introduction
SUSTAINABILITY AT BROOKFIELD
BUSINESS PARTNERS
Policy
Brookfield Business Partners' sustainability approach, informed by our Sustainability Policy, is centered on supporting business resilience and creating value for our investors and stakeholders-now and in the future.
Our Sustainability Policy formalizes our longstanding strategy of integrating sustainability considerations into our decision-making. This policy is reviewed annually and updated periodically by senior executives at Brookfield. In 2024, we enhanced our Policy around our approach to integrating sustainability into the investment cycle, reinforcing our commitment to transparency and continuous improvement.
ADDITIONAL INFORMATION
Sustainability Policy
Mitigate the impact of our operations on the environment
-
Strive to minimize the environmental impact of our operations and improve our efficient use of resources over time.
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Support Brookfield's ambition of reaching net-zero GHG
emissions by 2050 or sooner.
Uphold strong governance practices
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Operate to the highest ethical standards by conducting business activities in accordance with our Code of Business Conduct and Ethics.
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Maintain strong stakeholder relationships through
transparency and active engagement.
Strive to ensure the well-being and safety of our workforce
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Foster a positive work environment based on respect for human rights, valuing diversity and having zero tolerance for workplace discrimination, violence or harassment.
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Operate with robust health and safety practices to support the goal of achieving zero serious safety incidents.
Be good corporate citizens
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Strive to ensure that the interests, safety and well-being of the communities in which we operate are integrated into our business decisions.
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Support philanthropy and volunteerism by our employees.
Our Sustainability Policy
Integrating Sustainability Into Our Investment Process
Stakeholder Engagement
and Stewardship
Sustainability Affiliations and Frameworks
Governance
Environmental Sustainability
Our People
Appendices
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Integrating Sustainability Into Our Investment Process
Throughout the investment process, we consider factors such as the business' activities, geography and industry to identify and manage risks efficiently, locate resources effectively, enhance decision-making and visibility as well as improve communications relating to risks.
Due Diligence
In the initial phase of our investment process, we leverage the Brookfield-wide Sustainability Due Diligence Protocol, industry-specific guidelines and frameworks such as SASB and our deep investing and operating expertise to assess material sustainability-related risks and opportunities relevant to each potential acquisition. Supported by several sustainability-related subject matter experts, our investment teams consider various factors, including our
We seek to embed material sustainability considerations, while evaluating risks and value creation opportunities, throughout the investment lifecycle
Due Diligence
Investment Committee Approval
Onboarding and Monitoring
Monetization
corporate policies, the health and safety of stakeholders, ethical concerns, environmental matters, carbon pricing and emerging risks, and perform deeper due diligence when required. These subject matter experts also provide technical expertise, reviewing findings and contributing additional insight to ensure completeness of the analysis.
Our due diligence process also incorporates climate change risks, such as the physical risks from changes to the frequency and severity of climate-related events, and the risks and opportunities that arise in transitioning to a low-carbon economy. In 2024, we conducted training for the investment team to enhance integration of sustainability practices into our due diligence methodology.
Investment Committee Approval
All acquisitions made by Brookfield Business Partners require approval by the Investment Committee, which makes its decisions based on a set of predetermined criteria. To facilitate the review and approval process, our teams provide the Investment Committee with a memorandum outlining the merits of the transaction, material risks, mitigants and significant opportunities for improvement-including those related to sustainability.
Onboarding and Monitoring
All controlled operations are required to adhere to our sustainability principles, as defined within our Sustainability Policy12. Upon acquisition, our business
operations team creates a tailored integration plan that includes any material sustainability-related matters identified during the due diligence process. We hold onboarding sessions with the management teams of newly acquired operations to support them in developing and operationalizing a sustainability strategy tailored to their business by leveraging our sustainability program implementation framework.
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We maintain a hands-on approach with our operations, often through a visible presence on Boards and through broader Brookfield Business Partners engagement that include executive and employee placements or secondments. A fundamental principle of our risk management program is that risk should be managed as close to its source as possible, and by those who have the most extensive knowledge and expertise in a particular business or risk area. As such, the responsibility for managing sustainability risks and opportunities ultimately lies with
the management teams of our operations, with support provided by Brookfield Business Partners' team on an as-needed basis.
All controlled operations are required to regularly report on their sustainability strategy, program implementation and key performance metrics which include health and safety training hours, compliance with regulatory requirements, environmental management and GHG emissions, among others.
Monetization
As part of our annual planning process, each operations' business plan outlines potential value creation from several factors, including relevant sustainability considerations. We consolidate qualitative and quantitative data that summarizes the overall performance of the operation (including relevant sustainability factors) and provides a holistic understanding of how we managed the business and created value during the investment period.
Introduction
SUSTAINABILITY AT BROOKFIELD
BUSINESS PARTNERS
Our Sustainability Policy
Integrating Sustainability Into Our Investment Process
Stakeholder Engagement
and Stewardship
Sustainability Affiliations and Frameworks
Governance
Environmental Sustainability
Our People
Appendices
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12 Controlled operations refers to investments in which Brookfield Business Partners has control. Where Brookfield Business Partners is not in a controlling position, best efforts are made to exert similar levels of influence, where possible and required.
Stakeholder Engagement and Stewardship
We seek to achieve responsible stewardship, as defined by the United Nations Principles for Responsible Investing (PRI), through collaboration with our operations to help inform and improve our sustainability strategies and practices.
Please refer to the Integrating Sustainability Into Our Investment Process section for further detail on our collaborative approach to responsible stewardship. We may partner with or support our operations to facilitate discussions with external
stakeholders, with the intent of positively influencing industry standards or practices
that are aligned with our sustainability principles.
We are committed to engaging with stakeholders and informing them of our progress through comprehensive ongoing communications, including through published materials such as annual reports, quarterly interim reports, press releases and unitholder letters. Our website provides access to these materials, as well as statutory filings and other information. Management also regularly communicates with investment analysts, financial advisors, rating agencies and the media.
Several factors, including stakeholder engagement, inform our material topics, helping to focus our efforts on key issues relevant to our business and important to our stakeholders. Refer to Our Material Sustainability Topicswithin the appendices for further detail.
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The following illustrates our key stakeholders and the various ways we engage with them:
|
Stakeholder Group |
Engagement Channels |
Identified Priorities |
Why We Engage |
|
Employees |
|
|
|
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Investors |
email correspondence and calls |
|
|
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Communities and the Public |
|
|
specific needs |
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Regulatory Bodies and Governments |
|
|
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Operations |
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|
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Introduction
SUSTAINABILITY AT BROOKFIELD
BUSINESS PARTNERS
Our Sustainability Policy
Integrating Sustainability Into Our Investment Process
Stakeholder Engagement
and Stewardship
Sustainability Affiliations and Frameworks
Governance
Environmental Sustainability
Our People
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Appendices
Sustainability Affiliations and Frameworks
In line with our sustainability approach, we have continued to focus on
enhancing our sustainability reporting with industry standards.
We engage with a range of leading sustainability frameworks to align our sustainability reporting and protocols with leading practices. The following are some of the key frameworks and organizations with which we are affiliated through our relationship with Brookfield:
Introduction
SUSTAINABILITY AT BROOKFIELD
BUSINESS PARTNERS
Our Sustainability Policy
Integrating Sustainability Into Our Investment Process
Stakeholder Engagement
and Stewardship
Sustainability Affiliations and Frameworks
Governance
Environmental Sustainability
Our People
Brookfield has been a signatory to the PRI since 2020 and completes the PRI assessment annually, which reinforces their longstanding commitment to responsible investing and sustainability best practices.
Brookfield is a member of the IFRS Sustainability Alliance, a global program established to develop globally accepted accounting and sustainability disclosures.
Appendices
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Brookfield reviews all of their memberships with external organizations periodically or in the event of material changes in their strategy or operations to determine if the memberships continue to be aligned with broader business and sustainability objectives. For additional information on our sustainability affiliations, please refer to the Responsibility section of our website.
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Governance
Sustainability Governance and Oversight Data Privacy and Security
Ethical Business Practices Responsible Labor Practices
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Sustainability Governance and Oversight
We have established governance practices to monitor our business and oversee our sustainability approach.
The oversight of sustainability, including climate, is integrated into our governance framework and approach. For an overview of our Corporate Governance, refer to our Annual Report and the Corporate Governance section of our website.
Board Oversight
Brookfield Business Partners' Board of Directors (the "Board") oversees our sustainability approach. The Board oversees our risk management strategies, including reviewing management's
assessment of the current and emerging financial and non-financial risks and related mitigation strategies for risks related to climate, bribery and corruption, cyber, and health and safety. The Board reviews and approves significant policies related to sustainability
and receives quarterly updates on our sustainability program. We
Brookfield Business Partners Board of Directors
Governance & Nominating Committee
MANAGEMENT COMMITTEES
Sustainability Management Team (Brookfield-wide)
Decarbonization Steering Committee (Brookfield-wide)
Risk Management Team
Human Resources Team
Safety Leadership Committee (Brookfield-wide)
Investment
Committee
Sustainability Financial
Reporting Working Group
WORKING GROUPS
Sustainability Working Group
Decarbonization Operational Committee (Brookfield-wide)
BUSINESS OPERATIONS TEAM
Introduction
Sustainability at Brookfield
Audit Committee
Business Partners
GOVERNANCE
Sustainability Governance and Oversight
Executive Oversight
Data Privacy and Security Ethical Business Practices Responsible Labor Practices
Environmental Sustainability
Financial Reporting Team
Our People
Appendices
consider financially material sustainability-related risks as part of our broader risk management program. For further information refer to our Annual Report.
Dedicated Sustainability Personnel
Global Subject Matter Experts
OPERATING COMPANIES
Regional Investment
and Operational Teams
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Skills and Expertise of Our Board Members13
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The Governance and Nominating Committee
oversees sustainability governance activities, which
Across Brookfield, we have several management
committees responsible for implementing sustainability
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Brookfield's Decarbonization Steering Committee
oversees Brookfield's decarbonization strategy and
Introduction
0%
Business Development
Leadership of a Large/Complex Organization
Sustainability
Corporate Strategy/M&A
Risk Management
Legal & Regulatory
100%
are outlined in the Governance and Nominating Committee Charter. Key activities include updating and making recommendations to the Board
of Directors on sustainability-related matters, monitoring trends and best practices for corporate sustainability disclosures, reviewing and assessing our sustainability approach and ensuring that relevant sustainability skills and considerations
are integrated into Board practices, including the
nomination of directors.
-
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The Audit Committee oversees the risk management strategies, systems and procedures for external financial reporting, including any risks related to relevant sustainability risk factors. For details refer to our Audit Committee Charter.
Executive Oversight and Management Committees
Our sustainability initiatives are overseen by senior executives who provide regular updates to our Board. Given the wide range of topics covered under sustainability, we have nominated functional leads
responsible for developing, implementing and monitoring relevant sustainability factors within their respective functional area. Our Chief Financial Officer ensures that regulatory reporting requirements related to sustainability are incorporated into our reporting processes.
initiatives and ensuring that the approaches across business groups are appropriately applied and coordinated. These committees are overseen by senior executives at Brookfield, including its Chief Operating Officer and Chief Financial Officer, with the support of Brookfield's Head of Sustainability Management. Examples of these committees and teams include:
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Brookfield's Sustainability Management Team ensures there is a holistic approach to sustainability and climate priorities and reporting across Brookfield by identifying and articulating the strategic direction for sustainability, as well as coordinating efforts across all aspects of the business.
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Our Investment Committee considers relevant sustainability risks and opportunities when evaluating investment opportunities, including climate-related risks and social and governance considerations, which are incorporated into the due diligence process for each potential acquisition.
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Brookfield's Safety Leadership Committee drives Brookfield's strategic health and safety framework by promoting a strong safety culture, monitoring safety trends and sponsoring initiatives related to health, safety, security and environmental matters.
initiatives. The committee's mandate is to:
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Ensure alignment and consistency in approach across Brookfield's business groups;
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Share best practices and information on initiatives at
operations; and
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Measure and report results.
-
Working Groups
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Our Sustainability Working Group comprises functional leads across Brookfield Business Partners and is tasked with supporting Brookfield's Sustainability Management Working Group with the development, oversight and coordination of sustainability initiatives as well as ensuring that sector and market trends are considered. With varying areas of expertise and backgrounds, there is a wide range of representation when coordinating sustainability opportunities and risks. The working group meets as needed, and reports on its progress to the Brookfield Sustainability Management Working Group on a regular basis.
Sustainability at Brookfield
Business Partners
GOVERNANCE
Sustainability Governance and Oversight
Data Privacy and Security Ethical Business Practices Responsible Labor Practices
Environmental Sustainability
Our People
Appendices
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13 Represents Board members who have a high or advanced level of knowledge or experience in the respective subject matter.
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Our Sustainability Finance Working Group comprises senior financial professionals from across Brookfield Business Partners and is responsible for monitoring external financial reporting requirements for climate-related information and, when required, will support the integration of these requirements into our public financial reporting, along with the appropriate control framework. This group meets as required based on developments in reporting standards and reports to our Chief Financial Officer.
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Brookfield's Decarbonization Operational Committee comprises senior Brookfield representatives from across the organization to execute the priorities set out by the Decarbonization Steering Committee and support Brookfield's climate strategy. The committee coordinates and advises on the execution of decarbonization strategies to support alignment and consistency, shares practices and information on operating company initiatives, and measures and reports on progress. A monthly forum generates cross-Brookfield opportunities and partnerships with the objective of achieving financially prudent decarbonization, as well as facilitating training through internal and external expertise. The committee's members also provide updates to their respective business groups' senior leadership, including CEOs.
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Operations
The management teams of each operation are responsible
for the development and execution of a sustainability strategy for their respective business and are accountable for the oper-ation's progress towards achieving sustainability objectives.
Our operations are supported by investment and business operations professionals as well as subject matter experts who oversee sustainability initiatives based on business priorities, industry developments and best practices. Their mandate includes monitoring and reporting of key sustainability metrics, which are collected annually with trends and material findings reported to our Board. They also provide strategic oversight and ensure that the sustainability initiatives and practices of our operations are aligned with ours. This approach leverages our industry and operational expertise to achieve our sustainability goals.
Our operations follow a similar sustainability governance
model, including:
-
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Board or committee oversight of sustainability management;
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A steering committee comprising senior executives;
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An internal working group; and
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Quarterly Board meetings and operating reports, including
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sustainability updates.
Introduction
Sustainability at Brookfield
Business Partners
GOVERNANCE
Sustainability Governance and Oversight
Data Privacy and Security Ethical Business Practices Responsible Labor Practices
Environmental Sustainability
Our People
Appendices
Data Privacy
Brookfield's Information Advisory Steering Committee over-
This includes leveraging best-in-class software to scan
The management teams of our operations supervise
Introduction
sees the cybersecurity programs and ensures continuous
improvement, incorporating lessons learned and aligning
for potential vulnerabilities, support ongoing network
monitoring, and enhance overall threat detection
cybersecurity and data privacy activity, and are
required to report on activity, including breaches, to
and Security
We consider cybersecurity a priority within our risk management framework and adhere to a robust cybersecurity program supported by strict protocols that seeks to protect the security
of data, as well as the physical and financial assets controlled by Brookfield.
Our operations are providers of essential products and services to global economies and as such, cybersecurity and data privacy are critical to their uninterrupted operations. Across our operations, we implement cybersecurity policies and procedures that include security governance, workforce training, relevant access management and security, vulnerability management, penetration testing, security monitoring and incident response.
78,000
cybersecurity training hours were completed across our operations
with industry best practices. Our cybersecurity program has expanded with a full controls library that aligns with, and in some cases exceeds, the following best practice frameworks:
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Center for Internet Security (CIS) Critical Security Controls
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Control Objectives for Information and Related Technologies (COBIT) 2019
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ISM (Essential 8)
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ISO/IEC 27002
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National Institute of Standards and Technology (NIST)
2.0 Cybersecurity Framework
Over the past year, we have increased focus on strengthening our defense against possible data privacy and security threats to our business, as well as introduced regional controls to enhance the protection of assets in compliance with local regulations across the globe.
Effective and appropriate controls, tailored to their level of risk exposure and maturity, are mandatory across our operations. Leading third-party industry experts are regularly engaged to assess the effectiveness of
foundational cybersecurity controls and complete technical audits across our operations, which are then reported back to us for review and assessment. This includes leveraging best-in-class software to scan for potential vulnerabilities, support ongoing network monitoring, and enhance overall threat detection capabilities. If applicable, we provide our operations with technical support and resources to expedite remediation activities and address potential vulnerabilities.
capabilities. If applicable, we provide our operations with technical support and resources to expedite remediation activities and address potential vulnerabilities.
Employee Awareness
An important component of our cybersecurity program
is fostering a culture of understanding, competency, and transparent communication around cybersecurity among employees and our operations.
Our employees and operations complete regular mandatory data protection awareness training, phishing training and simulations, to enhance the understanding of:
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The type of information we possess;
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The importance of using-and retaining-this information only for the business purpose intended; and
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The proper methods and procedures to appropriately
secure this information.
We regularly assess the effectiveness of our training programs and enhance our simulations to include more advanced phishing and social engineering techniques to keep current with potential and emerging cybersecurity threats. Employees identified in higher-risk functions receive additional training and cybersecurity awareness education. An incident of employee non-compliance with our policy or unauthorized use or disclosure of confidential information may result in disciplinary action up to, and including, termination of employment.
the Brookfield Business Partners' Board on a quarterly basis. We exchange cybersecurity and data best practices among our operations through fireside chats and annual summits attended by senior leaders who are accountable for managing cybersecurity risks.
In 2024, we hosted our annual IT summit with a focus on cybersecurity, specifically addressing data
protection, governance and security within the context of artificial intelligence. The event provided senior leaders with opportunities to exchange insights
and experiences through panel discussions and presentations covering each area of interest.
Data Privacy
We expect all employees and operations to safeguard sensitive data throughout our business and to comply with all applicable data protection and privacy laws.
Brookfield's data protection program complies with applicable local and national regulatory requirements, including the European General Data Protection Regulation (GDPR) and the California Consumer Protection Act (CCPA), the requirements of which are included in Brookfield's Website Data Protection Policy and
Privacy Notice.
Our data protection and cybersecurity due diligence checklist is designed to assess counterparties' data protection and cybersecurity maturity and compliance with applicable legal and regulatory requirements.
Sustainability at Brookfield
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GOVERNANCE
Sustainability Governance and Oversight
Data Privacy and Security Ethical Business Practices Responsible Labor Practices
Environmental Sustainability
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Disaster Recovery
Our priority is to ensure that our operating companies are well-prepared to respond to an incident and maintain business continuity in the unlikely event of a disaster
scenario. Understanding critical systems and collaborating with our operations to implement effective plans and processes forms the backbone of our disaster recovery efforts. These include providing business continuity support through our partnership programs, supporting (or providing, as needed) cybersecurity forensic teams, providing pre-vetted and readily available communication support for immediate use, assisting with the necessary technologies to put these plans into action, and conducting ongoing training and regular validation of disaster recovery plans and systems.
In the event of an incident, the affected operation notifies our business operations team to support in assessing severity and impact, communicating the incident quickly and effectively through our readily available communications process and formalizing a cross-functional incident response team, as needed. We notify our Board as soon as possible and keep them informed as the incident develops. These measures ensure that our operations are equipped to quickly respond to risks and threats, allowing them to recover critical systems and operations in a timely manner and minimize the impact to their operations.
ADDITIONAL INFORMATION
Website Data Protection Policy and Privacy Notice
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Introduction
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GOVERNANCE
Sustainability Governance and Oversight
Data Privacy and Security Ethical Business Practices Responsible Labor Practices
Environmental Sustainability
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Ethical Business Practices
We conduct our activities in accordance with our Code of Business Conduct and Ethics and in compliance with all applicable legal and regulatory requirements.
Our Code of Business Conduct and Ethics ("Code of Conduct") provides clear expectations and principles for conducting business responsibly and incorporates our related corporate policies and programs. It applies to all our directors, officers, employees and temporary workers within our operations. We require certifications
of compliance with the Code of Conduct from each
employee on an annual basis.
The Board reviews and approves the Code of Conduct annually and considers any necessary changes in the firm's standards and practices. Following an acquisition, we require our operations to either adopt our Code of Conduct or maintain a policy that is equal in substance to ours to ensure that our expectations are upheld throughout our operations. The Audit Committee of the
Board monitors compliance with the Code of Conduct and receives regular reports from our internal auditors on alleged violations reported through the various channels including the Reporting Hotline.
We do not tolerate bribery and corruption, including facilitation payments. We mandate that all employees engaged in activities with Brookfield Business Partners complete annual training and certify their compliance with our Anti-Bribery and Corruption (ABC) Program. Our ABC Program is integrated into our due diligence and acquisition decision-making processes. Upon acquisition, we require that our operations adopt equally stringent ABC policies.
Our Reporting Hotline promotes open and honest communication, and ensures that employees feel safe reporting suspected unethical, illegal or unsafe behavior. It is managed by an independent third party
and is available 24 hours a day, seven days a week. We require that all our operations have a Reporting Hotline in operation within six months of acquisition. Material violations identified are brought to the attention
of senior management at the operation, Brookfield Business Partners' senior management and Brookfield Business Partners' Audit Committee on a quarterly basis, at minimum.
ADDITIONAL INFORMATION
Code of Business Conduct and Ethics Anti-Bribery and Corruption Program Anti-Money Laundering Policy Positive Work Environment Policy Disclosure Policy
Whistleblowing Policy
45,000
anti-bribery and corruption training hours completed across our operations
100%
of our operations have a Code of Conduct and Anti-Bribery and Corruption Policy
100%
of our operations have a Reporting Hotline
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Responsible Labor Practices
Brookfield's Vendor Code of Conduct establishes principles for which our controlled operations are expected to apply when selecting independent third-party contractors.
CASE STUDY
Enhancing Collaboration and Supporting Responsible Contracting at BRK Ambiental
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GOVERNANCE
Sustainability Governance and Oversight
Data Privacy and Security Ethical Business Practices Responsible Labor Practices
As part of delivering high-quality products and services for customers, Brookfield's Vendor Code of Conduct sets out expectations for vendors that provide goods or services to Brookfield, including, where applicable, the necessary policies and procedures in place to support such commitments within their supply chain.
Refer to the Vendor Code of Conduct for a list of Brookfield-wide principles that are expected to be applied by controlled operations when selecting independent third-party contractors such as provision of fair wages and benefits in addition to observance of local, state and national laws. These principles are introduced as part of our onboarding process for applicable jurisdictions, to encourage all our operations to align with our best practices.
ADDITIONAL INFORMATION
Vendor Code of Conduct Vendor Management Guidelines
BRK Ambiental, our water and wastewater operation, is a leading private sanitation provider in Brazil specializing in the collection, treatment and distribution of water and wastewater services to more than 16 million people in over 100 municipalities. The business is dedicated to improving sanitation and contributing to the wellbeing of the communities where it operates.
To support responsible contracting and promote social and economic development, the business launched the BRK Parceiros ("BRK Partners") program, a strategic initiative designed to enhance collaboration with regional suppliers. The program focuses on supporting local businesses
to drive regional economic growth by offering opportunities for partnerships with companies and service providers. By incorporating local suppliers into its network, BRK Ambiental aims to create a more sustainable and resilient supply chain.
At the end of 2024, the program celebrated its first year and since its launch has attracted numerous new suppliers enhancing growth opportunities for small and medium-sized enterprises. In addition to being good for
the communities where it operates relative to contracts with non-BRK Partners vendors the program has generated savings of approximately 20% for the business.
To further enhance support of local businesses,
BRK Ambiental partnered with Sebrae, a
non-profit that supports small businesses, to assess the sustainability practices of suppliers. Suppliers are invited to access the Sebrae portal and complete a brief questionnaire which provides a diagnosis of its practices.
Following the completion of the questionnaire, they can gain access to free digital training content for business development and enhancements in sustainability programs.
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Environmental Sustainability
Climate Change Strategy Energy and Emissions Water and Waste
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Climate Change Strategy
Addressing the climate crisis through supporting Brookfield's Climate Change Strategy is integral to building resilient businesses and ensuring long-term sustainable operating success.
Brookfield continues to enhance the transparency and alignment of its practices to the recommendations of the TCFD, including additional disclosures contained in the Brookfield 2024 Sustainability Report. Through
our relationship with Brookfield, we reference the TCFD in disclosing our climate strategy, governance, risk management, and metrics and targets.
For more details on Board oversight and management's responsibilities of climate-related initiatives, please refer to the Sustainability Oversight and Governance section of this report.
Climate Strategy
Brookfield's climate change strategy is informed by its assessment of risks and opportunities. The strategy comprises the following four components:
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Managing risks and identifying opportunities of a changing climate by leveraging the risks and opportunities informed by risk management processes and investment processes, as well the
completion of climate scenario analysis (as described
in Climate-Related Risk Management sub-section);
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Engaging with operations and stakeholders by sharing Brookfield's approach, facilitating knowledge sharing and advocating, where necessary, for
best practices regarding sustainability and climate risk management (as described in Stakeholder Engagement and Stewardship section);
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Operationalizing decarbonization through strategic engagements with operations to measure emissions, identify levers, establish targets and implement climate strategies (as described in Energy and Emissions section); and
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Supporting effective water and waste management to reduce our environmental footprint and reduce risks associated with water and waste management
(as described in Water and Wastesection).
Climate-Related Risk Management
Brookfield's Sustainability Due Diligence Protocol includes a climate change risk and opportunity assessment to identify and assess climate change risks of new acquisition opportunities, considering factors such as resource efficiency, energy sources and resilience.
Refer to Integrating Sustainability Into Our Investment Process section for details on how climate risks and opportunities are integrated into the investment process.
For ongoing management, we leverage Brookfield's climate change risk management methodology (shown on next page), which enables consistent monitoring and management of climate risks across the organization and operations, serving as an input to our risk management process. We provide regular updates on overall risks to our Board that include updates on our current risk profile and a variety of emerging risks, as well as periodic in-depth reports on specific risk areas such as climate change.
A key component of ongoing climate risk management is engagement with the management teams at our operations regarding their climate considerations, opportunities and decarbonization initiatives. For more information on how we engage with our operations, refer to the Energy and Emissions section.
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Climate Change Risk Management Methodology
Our latest assessment screens were based on our operations as of December 31, 2024 and were completed with the assistance of a global engineering and professional services firm. The screening leveraged a scenario-based
1
Set Context
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Define time periods
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(Short, Medium, Long Term)
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approach that assessed both the physical and transition climate risks and opportunities of our operations over three time horizons - short term (2030), medium term (2040) and long term (2050). The screening enabled us to assess the exposure within our business, identify operations potentially at risk and begin to assess the resilience of our current business strategy under different future climate trajectories.
Ongoing Monitoring & Continuous Improvement
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Review, refine and update methodology
Identify Risks & Opportunities
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Define inventory of physical risks and transition risks and opportunities
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Exposure, vulnerability and level of physical and transition risks and opportunities vary across our operations, depending on factors such as business type, industry and geography. To demonstrate the screening approach undertaken for each operation, an extract of results for one of our operations within our industrials segment is presented on the next page.
Operating Company Assessment & Engagement
4
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Further assessments, as required
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Review mitigation and adaptation strategies
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Support enhancement opportunities
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Assess post-mitigation risk
Assessment Screens
3
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Screen, on a pre-mitigation basis for potential physical risks and transition risks and opportunities
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Scenario analysis
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Common risk scale
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PHYSICAL RISKS
Distribution of Potential Physical Risks (single industrials business excerpt for illustrative purposes)
Emissions
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Higher |
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Current |
Extreme Rainfall |
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Drought |
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Landslide |
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Wildfire |
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Riverine Flood |
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Tropical Storm |
The graph on the left shows the distribution of the potential physical risks by climate variable for the sampled operation under current and future emissions scenarios. Physical risks were analyzed using the historical exposure to the noted climate hazards (to assess current risk) and the potential for increasing exposure and risk over time due to climate change (under lower and higher emissions scenarios) using data from global climate models.
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0%
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100%
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NO RISK INCREASED RISK
TRANSITION RISKS AND OPPORTUNITIES
The graph on the right shows the impact scores of the potential for risk or opportunity to the operation under three divergent transition scenarios. The screening used global energy/economic integrated assessment models, which evaluate the energy and economic implications of different transition pathways to determine impact under the three scenarios-current policies, delayed transition and net zero by 2050 scenario.
Limitations to the Analysis
Climate risk and opportunity management is an evolving aspect of our business. We recognize that there are uncertainties in understanding and addressing these risks and opportunities. Climate science, as well as associated methodologies, scenario analysis and industry standards, continue to evolve and there continue to be challenges with data quality and availability. Furthermore, other externalities, including technology, and economic and geopolitical events may have an evolving or unexpected impact. As such, we will continue to refine our understanding of how transition and physical climate issues may impact our operations. We expect to continue making enhancements to the way we assess, manage and report on climate-related risks and opportunities
as we learn from our own experiences and incorporate advancements in climate science, relevant standards and best practices.
As a result, we expect that certain information presented in this report and in other sustainability-related publications may be updated or restated in the future as the quality and completeness of our data and methodologies continue to improve.
Distribution of Potential Transition Risks and Opportunities (single industrials business excerpt for illustrative purposes)
VERY LOW
Total Score
Legal/Reputational
Macroeconomic Performance
Oil Price
Economy Electrification
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MODERATE OPPORTUNITY |
MODERATE OPPORTUNITY |
LOW OPPORTUNITY |
LOW OPPORTUNITY |
OPPORTUNITY/ RISK |
LOW RISK |
LOW RISK |
MODERATE RISK |
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-6 |
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-2 |
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Metrics and Targets
Through our relationship with Brookfield, we support their net-zero ambition, which includes:
CASE STUDY
Working Toward Sustainable
Introduction
Sustainability at Brookfield
Business Partners
consistent with an ambition to reach net-zero emissions by 2050 or sooner;
of a specific proportion of assets in line with net zero,
with targeted emissions reduction by 2030; and
at least every five years, with a view to increasing the proportion of assets covered until 100% of assets are included.
Progress towards Brookfield's targets is facilitated through the tracking of GHG emissions, which we continue to measure and report on an annual basis. For more on Brookfield's net-zero ambition, refer to the Brookfield 2024 Sustainability Report. For an overview of our annual GHG emissions performance, refer to the Energy and Emissions section of this report.
Value Creation
Our advanced energy storage operation, Clarios, is one of the global leaders in low-voltage battery technologies. The business' solutions power virtually every kind of vehicle, from internal combustion to hybrid and full electric vehicles.
Clarios has established a robust circularity program
that enables up to 99% of battery materials to be responsibly recovered, recycled and reused - supporting a continuous supply of essential materials and reducing the company's environmental impact. Clarios' circular supply chain begins with the safe collection and transport of used batteries by licensed logistics partners to global recycling facilities, where materials are separated and recovered for reuse in new batteries. As a leader in advancing circularity across the battery value chain, Clarios also co-founded the Responsible Battery Coalition (RBC), a nonprofit that promotes responsible battery management across their entire life cycle, emphasizing a closed-loop circular economy for batteries.
In addition to its circularity initiatives, Clarios has worked to advance its decarbonization ambitions by developing detailed roadmaps and analyzing levers to enhance operational efficiency while supporting
Clarios' sustainability goals. Clarios' decarbonization strategy includes a nuclear power agreement as well as improving energy efficiency through measures such as repairing compressed-air leaks, installing heat-recovery systems and enhancing lighting efficiency at manufacturing facilities.
Through the business' circularity initiatives as well as enhancements to its decarbonization approach, Clarios is able to not only lower operational costs but also reinforce its dedication to sustainable value creation and environmental stewardship.
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Energy and Emissions
Understanding the emissions of our operations through data collection and measurement presents opportunities for mitigation and more sustainable practices.
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Operationalizing Decarbonization
Pursuing decarbonization has the potential to create value for our operations through various means which can include access to capital and reduced operating costs and opportunities to strengthen reputation with stakeholders. Our role is to support our operations to formalize a decarbonization approach, facilitate knowledge sharing and develop repeatable strategies across our
operations to catalyze emissions reduction solutions. This approach is what we refer to as operationalizing decarbonization, which comprises a five-step cycle:
Introduction
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Step 1
Support Brookfield's net-zero ambition and near-term targets
Step 2
Share best practices and operational excellence
Step 3
Apply Brookfield's achieving net-zero framework
Step 4
Measure and report progress
Step 5
Evaluate Brookfield's net-zero ambition and support updates to near-term targets
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Support Brookfield's net-zero ambition and near-
term targets
We support Brookfield's ambition to reach net-zero emissions by 2050 as well as an interim target to reduce emissions by 2030. For more information, refer to the Metrics and Targets sub-section of this report as well as Brookfield's 2024 Sustainability Report.
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Share best practices and operational excellence As part of our onboarding process, we introduce new operations to Brookfield's net-zero ambition, discuss their existing decarbonization commitments and strategies, and explore ways to support their efforts through training and sharing best practices.14 We
prioritize our operations, which significantly contribute to our overall emissions, with the aim of having them undertake climate strategy development that is unique to their specific business.
Our operations have access to a range of training and resources related to emissions measurement and reduction strategies, including Brookfield's "Net Zero Playbook'' for teams that are beginning to develop decarbonization plans. The Net Zero Playbook helps our operations assess the feasibility, applicability
and practicality of various decarbonization options. We have organized roundtable discussions with select operations focusing on decarbonization and climate risk management, data quality and reporting
considerations, and connecting decarbonization efforts
to value creation.
14 Our efforts are focused on operations where we have control or significant influence.
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We work closely with senior leadership at each operation and assign them ultimate accountability to put into action decarbonization strategies that prioritize return on investment while also considering emission reductions, concentrating on the following categories:
Efficiency Improvements: Investing capital in replacement or growth capital expenditure projects, resulting in higher efficiency and lower emissions intensity;
Electrification: Modifying or replacing traditional fossil fuel consuming processes with electrification methods, where possible;
Green and Transition Technology: Utilizing newer, lower-emitting, technologies, including alternative sources of fuel and carbon capture and sequestration; and
Abatement: Reducing or ceasing activities contributing to GHG emissions, including streamlining processes or closing facilities, as required.
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Apply Brookfield's achieving net-zero framework Recognizing the need to prepare operations for decarbonization, Brookfield's Achieving Net-Zero Framework (ANZF) sets out a phased approach for an operations' net-zero journey. This framework
incorporates the Paris Aligned Investment Initiative (PAII), Net-Zero Investment Framework (NZIF) and supplements it with additional steps to help bridge operations from the beginning of their journey to set a foundation
to achieve their long-term climate goals. The ANZF
29
framework and criteria are outlined on the next page.
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Brookfield's ANZF and Criteria
This framework is a Brookfield-wide tool for assessing the decarbonization status of operations. Each operation is embarking on an individual path to decarbonization-beginning with measuring emissions, working to identify decarbonization levers, and ultimately setting and implementing science-based targets, where feasible.
Decarbonization levers may include operational opportunities (i.e., operational efficiency, electrification, renewable energy and low- or no-carbon fuels), as well as value chain opportunities (i.e., new products, services, markets or material substitutions).
A select portion of our operations may be constrained by factors outside of their control (such as limited available technology and a lack of policy support, among others) and as a result, do not yet have decarbonization pathways that are both science-based and commercially viable. Recognizing this, Brookfield included two additional categories along the ANZF this year to recognize operations that are embarking on a decarbonization journey, even if it is not yet feasible to conform to a net-zero aligned pathway. We expect that some impediments will change or recede over time, and we encourage operations to continuously assess decarbonization opportunities as factors continue to evolve.
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Decarbonization Execution
Managed in Alignment with Net Zero
ALIGNING
ALIGNED
Preparing - Transition Plan Development
Working toward net-zero Emissions reductions pathway, Disclosure of scope meet or exceed annual 1, 2 and available/material reduction targets
3 emissions. 5-10 year Paris aligned reduction targets
ENGAGEMENT
With operating company
DECARBONIZATION STRATEGY
Review available science-based targets and identify possible levers
CONTINUOUS EVALUATION OF NET ZERO LEVERS
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Brookfield Business Partners LP published this content on September 17, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on September 17, 2025 at 21:14 UTC.
