Creating Value as an Investor

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2021 SUSTAINABILITY REPORT

Creating Value as an Investor

2 min read Jun 23, 2022
MetLife works every day to build a more sustainable world. That has been the nature of our business for 154 years.

Highlights

  • Over $82 billion in responsible investments1
  • $65 million of new impact investments,2 reaching $77 million of our $500 million goal, with over 40% to climate change priorities3 
  • Over $6 billion of new green annual investments,2 bringing total progress toward our $20 billion goal3 to nearly $10 billion 
  • 25% of real estate investments4 powered with renewable electricity (goal to have 100% by 2030)

Our Approach

MetLife’s commitment to helping people enjoy rich, rewarding lives is fulfilled by all areas of our business, including where and how we invest through our institutional investment management business, MIM. MIM-managed investments include MetLife’s general account portfolio,5 as well as investments made on behalf of MIM’s unaffiliated institutional client portfolios.

We believe ESG factors can have an impact on investment performance and are important considerations to effectively manage risk and achieve our clients’ investment objectives, including MetLife’s. MIM aims to deliver strong and sustainable risk-adjusted returns for our investors by building tailored portfolio solutions, appropriately integrating ESG criteria into our investment decision-making processes and collaborating constantly. 

Policies and Brochures

MetLife and MIM maintain policies and brochures that guide and communicate our ESG integration efforts within our investment processes, including: 

MetLife General Account5 Exclusionary Investments Screens and Divestment Policy
MIM’s ESG Investment Policy
MIM’s Engagement Policy
Public Fixed Income ESG Integration brochure
Private Capital ESG Integration brochure
Commercial Mortgage Lending supplemental ESG Investment Policy
Equity Real Estate supplemental ESG Investment Policy

Governance

Reporting to our CEO, MetLife’s Chief Investment Officer also serves as MIM’s President and oversees ESG integration efforts for all investments, including those managed by MIM. ESG and sustainability-related investment initiatives are reported to the Governance and Corporate Responsibility Committee of the Board at least annually. 

MIM’s Sustainable Investment Strategies (SIS) team provides leadership, advises internal functions on ESG-related matters and is responsible for the development, implementation and oversight of MIM’s sustainable investment strategy. MIM’s ESG Integration Council, chaired by the head of SIS, includes cross functional representation from MIM’s asset sector teams and support functions to ensure consistent communication and application of ESG investment practices and policies, as well as best practices, knowledge and expertise related to ESG integration activities and emerging risks and opportunities. In addition, as part of our core business practices, we maintain ongoing dialogue to raise awareness of sustainable business practices and prioritize active engagement with our investee company leadership as a key strategy to managing investment risk. 

MIM’s combined AUM helps finance job creation, business growth, and community development around the world. 

MIM Assets Under Management (AUM)

$669 billion6,7

Total AUM as of year-end 2021, publicly reported as follows:

$488 billion7

MetLife General Account Assets8

$181 billion7

Unaffiliated Institutional Client AUM managed by MIM

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1 REPRESENTS ASSETS MANAGED BY MIM AT ESTIMATED FAIR VALUE AS OF DECEMBER 31, 2021. FOR DEFINITIONS OF RESPONSIBLE INVESTMENTS, IMPACT INVESTMENTS AND GREEN INVESTMENTS, PLEASE SEE PAGES HERE. 

2 ANNUAL INVESTMENTS IN 2021.

3 METLIFE’S 2030 CLIMATE GOAL TO ALLOCATE 25% OF IMPACT INVESTMENTS TO CLIMATE CHANGE PRIORITIES BETWEEN 2020 AND 2030. PLEASE SEE HERE FOR MORE INFORMATION.

4 REPRESENTS PERCENTAGE OF MIM-MANAGED AND CONTROLLED REAL ESTATE INVESTMENTS AS OF 12/31/21. 

5 PLEASE SEE HERE FOR A DEFINITION OF GENERAL ACCOUNT. 

6 PLEASE SEE MIM TOTAL AUM FACTSHEET AS OF 12/31/21 FOR MORE DETAILS. 

7 AS OF DECEMBER 31, 2021. AT ESTIMATED FAIR VALUE. SEE EXPLANATORY NOTE ON HERE. 

8 GENERAL ACCOUNT AUM (GA AUM) IS USED BY METLIFE TO DESCRIBE ASSETS IN ITS GENERAL ACCOUNT (GA) INVESTMENT PORTFOLIO THAT ARE ACTIVELY MANAGED AND STATED AT ESTIMATED FAIR VALUE. GA AUM IS COMPRISED OF GA TOTAL INVESTMENTS, THE PORTION OF GA INVESTMENT PORTFOLIO CLASSIFIED WITHIN ASSETS HELD-FOR-SALE, AND CASH AND CASH EQUIVALENTS, EXCLUDING POLICY LOANS, CONTRACT-HOLDER-DIRECTED EQUITY SECURITIES, FAIR VALUE OPTION SECURITIES AND CERTAIN OTHER INVESTED ASSETS, AS SUBSTANTIALLY ALL OF THESE ASSETS ARE NOT ACTIVELY MANAGED IN METLIFE’S GA INVESTMENT PORTFOLIO. MORTGAGE LOANS (INCLUDING COMMERCIAL, AGRICULTURAL AND RESIDENTIAL) AND REAL ESTATE AND REAL ESTATE JOINT VENTURES INCLUDED IN GA AUM (AT NET ASSET VALUE, NET OF DEDUCTION FOR ENCUMBERING DEBT) HAVE BEEN ADJUSTED FROM CARRYING VALUE TO ESTIMATED FAIR VALUE. CLASSIFICATION OF GA AUM BY SECTOR IS BASED ON THE NATURE AND CHARACTERISTICS OF THE UNDERLYING INVESTMENTS, WHICH CAN VARY FROM HOW THEY ARE CLASSIFIED UNDER GAAP. ACCORDINGLY, THE UNDERLYING INVESTMENTS WITHIN CERTAIN REAL ESTATE AND REAL ESTATE JOINT VENTURES THAT ARE PRIMARILY COMMERCIAL MORTGAGE LOANS (AT NET ASSET VALUE, NET OF DEDUCTION FOR ENCUMBERING DEBT) HAVE BEEN RECLASSIFIED TO EXCLUDE THEM FROM REAL ESTATE EQUITY AND INCLUDE THEM AS COMMERCIAL MORTGAGE LOANS.