Have a US$46.00 target. GLTA
PARTNERS L.P.
2022 Sustainability Report Shows Continued Progress
BIP’s 2022 Sustainability Report includes a net zero by 2050 goal, making it
one of only three names on our coverage list to formally have this goal.
Overall, the report keeps us constructive on BIP’s energy transition strategy
and commitment to improving ESG disclosures. This report contains
inaugural disclosures consistent with the TCFD's 11 recommendations and
marks the third year of measuring Scope 1 and 2 emissions for equity
investments with primarily consumption-level data.
BIP continues to have both short- and long-term climate goals in line with its
support of Brookfield Corporation’s Net Zero Asset Managers (NZAM)
initiative. In line with this, BIP has set a net zero by 2050 or sooner goal and
an interim target to reduce emissions by 2030. With 38 portfolio companies
and an average hold period of eight to nine years, BIP’s ESG influence is
significant. To this end, it adopts a life-cycle approach, including extensive
initial due diligence on ESG issues before investing.
Emissions data is included in the report, but given the changing portfolio and
diversified operations, it is hard to come up with emissions intensity
measures that are based on volumes rather than revenue. Meanwhile, total
Scope 1 and 2 emissions have stayed the same in 2022 versus 2021, while
greenhouse gas (GHG) emissions intensity based on revenues has declined
20% Y/Y.
On the safety front, BIP continues to target zero serious safety incidents
across the portfolio companies. In 2022, BIP indicates that it had zero
incidents that significantly disrupted business or resulted in material
information being lost or stolen across the portfolio companies.
This report shows BIP has made strides in diversity, with 50% of all
Brookfield promotions in 2022 being female. BIP also saw 28% of female
leaders at the SVP level or above, up from 27% a year prior. BIP also had
43% women on the Board of Directors, an improvement on 29% a year prior,
and is focusing on increasing representation of women on the boards of
directors at the portfolio companies.
Other areas of improvement include enhancing due diligence practices to
formalize inclusion of human rights and modern slavery, expanding
environmental and KPI metrics, and launching its first formal reporting
submission to the Principles of Responsible Investment. BIP continues to
view natural gas as a key piece of the decarbonization equation given its
lower emissions than coal or liquid fuels, abundance, and costs. BIP also
prefers to support decarbonization of high-emitting industries rather than
divesting. There is no company-wide exclusion policy on coal or other fossil
fuel investments.