That the Board of Directors of Brookfield Asset Management Inc. (“BAM”) expand its annual disclosure to shareholders, at reasonable cost and omitting proprietary information, to include key performance indicators (KPIs) on human capital management related to the company’s portfolio of alternative assets including real estate, infrastructure, renewable power and private equity. The enhanced annual disclosure should include:
- Comprehensive health and safety KPIs across the company’s global assets and operations; and
- Full reporting on the number and types of complaints received from employees, including contractors and temporary workers, the remedies offered under its grievance mechanism and the percentage of complaints resolved.
In order to provide comparable and consistent information, the metrics reported should align with internationally recognised good practice for reporting such as the Global Reporting Initiative and the Workforce Disclosure Initiative.
The disclosure of meaningful environmental, social and governance (ESG) metrics helps investors evaluate how a company manages key risks and upholds its responsibilities under international norms and frameworks such as the OECD Guidelines for Multinational Enterprises. These responsibilities include carrying out due diligence to avoid, prevent or mitigate adverse impacts linked to the operations of business relationships.
BAM directly employs over 80,000 people and relies on thousands more workers through contractors in countries with high risk for labour rights violations, including Colombia, the United Arab Emirates and China. By virtue of its business model and its management and operation of a diverse portfolio of real estate, infrastructure and private equity assets with a large employment footprint, BAM faces a broad range of workforce-related risks.
While in recent years, BAM has disclosed policies, codes and guidelines related to its management of ESG risks, its current disclosure does not provide sufficient metrics to help investors evaluate the company’s actual performance – particularly in the areas of occupational health and safety and employee complaints and grievances. A few Brookfield subsidiaries, such as Multiplex Construction Europe Limited, report health and safety metrics however most do not, and BAM provides no global data. As such, we are seeking more complete disclosure across all of BAM’s assets and operations.
Disclosure of metrics such as total recordable work-related injuries, and number of fatalities, for instance, would help investors to evaluate the company’s progress against its stated commitment to “zero serious safety incidents”. Similarly, data on the types of complaints received from employees and contract-workers, or the corrective measures taken to address workforce-related risks and concerns raised by its workforce would help demonstrate the effectiveness of human capital management practices.