Accelerating the net-zero transition
Brookfield Renewable Partners L.P. 2022 ESG Report
Welcome and | Context | Accelerating the |
progress overview | and approach | transition to net zero |
Contents
Welcome and | Governance | |||
progress overview | Responsible corporate | |||
CEO letter | 03 | governance | 56 | |
Our progress | 05 | Ethical business conduct | 60 | |
Cybersecurity | 62 | |||
Context and approach | ||||
Risks and opportunities | ||||
The world we operate in | 09 | |||
Who we are and what | Risk management | 65 | ||
we do | 11 | Focusing on climate | ||
Our approach to ESG | 15 | risks and opportunities | 68 | |
Integrating ESG throughout | Focusing on physical risks | 69 | ||
our investment lifecycle | 16 | Climate-related | ||
Applying our | scenario analysis | 70 | ||
ESG principles | 17 | Transition risks and | ||
opportunities analysis | 71 | |||
Accelerating the | Physical risks analysis | 75 | ||
Resilience of our strategy | 79 | |||
transition to net zero | ||||
Our role in the global | ||||
Next steps | ||||
net-zero transition | 19 | |||
Our strategy | 20 | Our continued | ||
1. Getting to net zero | 22 | commitment | 80 | |
2. Adding clean energy | ||||
capacity | 25 | Appendix | ||
3. Investing in | ||||
Appendix 1: | ||||
transformation | 31 | |||
ESG performance review | 83 | |||
Sustainable finance | 33 | |||
Awards, ratings and | ||||
certifications | 89 | |||
Supporting a | Risks and | Our continued | ||
responsible transition | Governance | opportunities | commitment | Appendix |
Welcome to our 2022 ESG Report
This report sets out our ESG approach, performance and progress across our Brookfield Renewable business as we work to accelerate the global transition to net zero.
Focusing on what matters most
The topics we identify in our materiality assessment guide our public disclosures. This assessment is informed by carefully considering applicable standards and engagement with relevant stakeholders. Information presented in this report and in our other ESG-related publications may be updated or restated in the future as the quality and completeness of our data and methodologies continue to improve.
Supporting a | Appendix 2: | ||
responsible transition | Standards & frameworks | 90 | |
Our approach | 35 | TCFD index | 91 |
Protecting biodiversity | 36 | UN SDGs | 94 |
Managing water | 38 | SASB index | 96 |
Managing waste | 40 | GRI index | 99 |
Respecting human rights | 41 | Appendix 3: | |
Prioritizing health | Methodology and | ||
and safety | 43 | materiality | 111 |
Developing human capital | 47 | Appendix 4: | |
Promoting diversity | Assurance | 114 | |
and inclusion | 49 |
About this report
Unless otherwise noted, this report addresses our ESG performance and progress from January 1 to December 31, 2022. All metrics are as of December 31, 2022 and relate to entities that Brookfield Renewable Partners L.P. (Brookfield Renewable) financially controls. Financial figures are reported in U.S. Dollars, unless otherwise indicated.
We continue to review our annual
We have reported in alignment with the GRI Standards for the period from January 1, 2022 to December 31, 2022. In addition, this report contains disclosures consistent with the TCFD's 11 recommendations and further disclosures in line with SASB Standards and the UN SDGs.
TCFD content symbol introduction
For more information on our materiality assessment go to page 111
Developing | |
community relations | 51 |
Managing our | |
supply chain | 54 |
reporting and disclosures and make improvements in line with evolving best practices to offer greater transparency on our programs and performance.
We have integrated our TCFD disclosures throughout this ESG report. The relevant sections are marked with this symbol and a summary and full index can be found on pages 91-93.
2022 ESG Report | Brookfield Renewable | 02 |
Welcome and | Context | Accelerating the | Supporting a | Risks and | Our continued | ||
progress overview | and approach | transition to net zero | responsible transition | Governance | opportunities | commitment | Appendix |
CEO letter
Connor Teskey
Chief Executive Officer, Brookfield Renewable
A landmark year
2022 marked a significant year for both our sector and our business. It has been our strongest year of growth to date and arguably the most significant 12 months for clean energy in recent history, against a backdrop of increasing urgency, momentum and opportunity surrounding decarbonization. As one of the few businesses with the scale, track record and global capabilities to partner with governments and businesses to help them achieve their decarbonization goals, we believe we are uniquely positioned to deliver on our goal of accelerating the net-zero transition while generating value for our investors.
On the policy front, we saw significant government support packages for emerging decarbonization technologies in major markets, including the Inflation Reduction Act (IRA) in the United States and the RePowerEU program in Europe. The combination of financial support and long-term policy commitment will continue to accelerate the deployment of renewables and facilitate investment in a range of newer decarbonization technologies.
At the same time, we've seen companies continue to drive the market for decarbonization technologies with over 8,000 businesses worldwide committed to net-zero targets.1 The corporate 'pull' is very much working together with the policy 'push' for investment in our sectors.
We also saw the wider energy sector adapt to the ramifications of the war in Ukraine, which disrupted trade flows for critical fuels and accelerated investment in alternative energy sources.
Given renewable energy is often the cheapest, cleanest and most readily available energy source in the majority of countries worldwide, it is clear that renewable and clean energy technologies serve both decarbonization and energy security needs.
Our business is extremely well positioned to meet these complementary needs. We are one of the world's largest owners and operators of renewables, with more than 25,000 megawatts of operating capacity and more than 110,000 megawatts in our development pipeline.
Our owner/operator model enhances our ability to accelerate this pipeline, adding value through our advanced capabilities in clean energy and other sustainable solutions.
Accelerating the transition
Our strategy is focused on accelerating the global net-zero transition through developing additional clean energy assets, growing sustainable solutions, and transforming carbon-intensive businesses to Paris-aligned business models. This is underpinned by robust governance and our commitment to collaboration.
"We have made considerable progress through the year and have our sights set firmly on achieving a great deal more in the years ahead. The tailwinds for our sector continue to strengthen and we are well positioned to grow across a diverse range of net-zero transition opportunities."
- UN Climate Change website, Race to Zero, March 2023. 2022 ESG Report | Brookfield Renewable
03
Welcome and | Context | Accelerating the | Supporting a | Risks and | Our continued | ||
progress overview | and approach | transition to net zero | responsible transition | Governance | opportunities | commitment | Appendix |
CEO letter continued
Last year we set out three targets to achieve net zero across our business and to accelerate the global transition to net zero. First, achieving net zero in our renewable operations across Scope 1 and Scope 2 emissions by 2030. Second, adding 21,000 megawatts of clean energy capacity, effectively doubling our footprint by 2030.
Third, investing our capital in the transformation of carbon-intensive businesses and putting them on a Paris-aligned pathway.
We have made important progress in all three areas. We continued to reduce our own emissions from our base year. We also made substantive clean energy capacity additions across the year, through the major wind repowering project at Shepherds Flat, significant greenfield development in multiple
jurisdictions, and several acquisitions of renewable energy developers, particularly in the United States. In total, we brought 3,475 megawatts of development projects through to operations.
In addition to renewable development, we made our first investment in a range of technologies we think will be critical for decarbonization in hard-to-abate sectors, including carbon, capture, usage and storage (CCUS), renewable natural gas (RNG), and waste recycling.
We take a proactive and focused approach building on our high ESG standards and see this as complementary to creating value in our business and for our stakeholders.
This starts with our people, who are our greatest asset: we are focused on their safety, wellbeing, and development. Health and safety remains our constant priority, particularly in a period where our business is growing into new technology areas. Our work also contributes to global low-carbon economy job creation, supporting the capability development
The following charts illustrate revenue on a proportionate basis1
Technology | Region | |
Hydroelectric | 53% | North America | 62% |
Wind | 20% | Latin America | 20% |
Solar - large scale utility | 15% | Europe | 16% |
Distributed energy & | Asia Pacific | 2% | |
sustainable solutions | 12% |
1 Figures based on normalized revenue for the past 12 months, proportionate to Brookfield Renewable.
We were also thrilled to announce, alongside our institutional partners, two landmark acquisitions: a 51% interest in Westinghouse, the world's leading nuclear services company, and in 2023, the energy markets division of Origin Energy, Australia's largest power utility. We expect both these transactions to close in 2023.
We continued to evaluate physical and transitional risks and opportunities and test the resilience of our strategy in line with the TCFD recommendations. The analysis performed and disclosed in this report reinforces our belief that our business is resilient across a range of scenarios.
A responsible transition
It is vital that we accelerate the global transition to net zero in a way that brings long-term value to our people, communities, economies and the environment. We continue to make progress in these areas.
needed to further the transition to a net-zero economy.
We focus on efforts to protect the environment near our operations, engage with and provide value to the communities in which we operate, and reinforce our commitment to conducting business in an ethical and responsible manner that respects human rights.
Looking forward
Our business is now firmly established as one of the leading owners and operators of decarbonization assets worldwide and is positioned well to capture the accelerating growth trends in our sector.
The growth in clean energy and decarbonization technologies will be the critical factor in the world's wider transition to a net-zero economy. The next decade will be key to making this happen. We look forward to accelerating the energy transition and growing our business in unison.
Sincerely,
2022 ESG Report | Brookfield Renewable | 04 |
Welcome and | Context | Accelerating the | Supporting a | Risks and | Our continued | ||
progress overview | and approach | transition to net zero | responsible transition | Governance | opportunities | commitment | Appendix |
Our progress
To make a positive difference where it matters for our people, and | UN SDGs |
the communities and environment where we operate, we focus on | |
a number of ESG targets across our material topics. |
In 2022, we continued to make good progress against these targets.
Material topic
Climate change
Biodiversity
Target1
Achieve net-zero Scope 1 and 2 emissions in existing renewable operations by 2030.
Develop an additional 21,000 megawatts of new clean energy capacity by 2030, which would be equivalent to doubling our existing portfolio to 42,000 megawatts.
Set emissions reduction targets and plans to align with the goals of the Paris Agreement for 100% of carbon-intensive investments.
By 20242, develop biodiversity management plans for 100% of our identified sites, prioritizing sites in biodiversity sensitive areas.
Assess nature-related physical and transition risks and opportunities in line with the Taskforce on Nature- related Financial Disclosures (TNFD) recommendations in 2022.
UN SDG | Target | Progress | |||||
alignment | year | ||||||
2030 | On track | ||||||
2030 | On track | ||||||
Annual | Met | ||||||
2024 | On track | ||||||
2022 Met
Performance
18% reduction in Scope 1 and 2 emissions from base year 2020.
Added 3,475 megawatts in 2022 with a total of approximately 25,400 megawatts of installed capacity.
100% of carbon-intensive investments with targets aligned with the goals of the Paris Agreement.
We have initiated and continued to make progress on developing biodiversity management plans.
In 2022, we assessed our biodiversity practices against the draft TNFD recommendations.
Link
Page 22
Page 25
Page 31
Page 36
Page 36
1 See individual sections for detailed information related to each target.
2 The reference to the year, refers to the final day of that year.
2022 ESG Report | Brookfield Renewable | 05 |
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Brookfield Renewable Corporation published this content on 17 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 May 2023 14:10:06 UTC.