Brookfield’s Climate Paradox: Climate Pledges vs. Fossil Fuel Reality

Brookfield Corporation claims to be a leader in decarbonization with a goal of net-zero emissions by 2050, yet it maintains a vast portfolio of over 215 fossil fuel assets. The report estimates these assets emit nearly 159 million metric tons of CO2e annually, a figure approximately 14 times higher than what Brookfield discloses in its sustainability reports. A significant portion of these emissions stems from Oaktree Capital Management, which Brookfield owns 61% of but excludes from its sustainability reporting. The report also highlights the contradiction in the leadership of Mark Carney, who advocates for global net-zero targets while overseeing these investments. Geographically, the portfolio is concentrated in North America, with significant assets in the United States and Canada, as well as international investments in the United Arab Emirates.

• Brookfield's estimated annual emissions from its fossil fuel portfolio are nearly 159 million metric tons of CO2 equivalent (CO2e), which is approximately 14 times the 11.8 million mt CO2e disclosed in its most recent sustainability report.
• The firm's fossil fuel holdings include at least 215 different assets across 31 portfolio companies, spanning the entire supply chain from extraction to power generation.
• Oaktree Capital Management, which is 61% owned by Brookfield, contributes significantly to the total emissions footprint, with an estimated 82 million mt CO2e per year, yet Brookfield excludes Oaktree's activities from its 2021 and 2022 Sustainability Reports.
• Three upstream companies—Diversified Energy Company, Vedanta Resources, and Caerus Oil and Gas—account for approximately 48% of the total annual estimated emissions for Brookfield and Oaktree, totaling about 76 million mt CO2e.
• Caerus Oil & Gas, an Oaktree portfolio company, is identified as the third highest methane polluter among the top 100 US oil and gas producers and the ninth highest greenhouse gas emitter.
• Brookfield maintains significant midstream assets, including the Sabine Pass and Cove Point LNG terminals in the US, the Dalrymple Bay Coal Terminal in Australia, and a gas pipeline network in the United Arab Emirates.
• The report argues that Brookfield's net-zero commitment is undermined by an incomplete accounting of Scope 3 emissions and the use of complex private equity structures to avoid transparency and regulatory oversight.

APA

Hurley, A., Mendoza, A., Moore, A., & Viera, O. V. (2023). Brookfield’s Climate Paradox: Climate Pledges vs. Fossil Fuel Reality. Private Equity Climate Risks. https://peclimaterisks.org/brookfield-emissions/

Chicago

Hurley, Alex, Amanda Mendoza, Alyssa Moore, and Oscar Valdés Viera. Brookfield’s Climate Paradox: Climate Pledges vs. Fossil Fuel Reality. Private Equity Climate Risks, 2023. https://peclimaterisks.org/brookfield-emissions/.

Wikipedia

{{cite report |last1=Hurley |first1=Alex |last2=Mendoza |first2=Amanda |last3=Moore |first3=Alyssa |last4=Viera |first4=Oscar Valdés |title=Brookfield’s Climate Paradox: Climate Pledges vs. Fossil Fuel Reality |publisher=Private Equity Climate Risks |date=4 December 2023 |url=https://peclimaterisks.org/brookfield-emissions/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{hurley2023brookfields, author = {Hurley, Alex and Mendoza, Amanda and Moore, Alyssa and Viera, Oscar Valdés}, title = {{Brookfield’s Climate Paradox: Climate Pledges vs. Fossil Fuel Reality}}, institution = {Private Equity Climate Risks}, year = {2023}, month = dec, url = {https://peclimaterisks.org/brookfield-emissions/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }