Sustainable Financing

2020 SUSTAINABILITY REPORT : Collapsed

CHAPTER 4

Sustainable Financing

2 min read Jun 22, 2021

Our institutional investment management business, MIM, seeks to deliver solutions that manage risk and create sustainable, long-term investment returns for clients, including MetLife. At MetLife, our customers come first, which means that we must strive at all times to deliver on our promises to both current and future generations.

In 2020, we launched a Sustainable Financing Framework (the Framework) to facilitate alignment of MetLife’s business and investment activities to support and drive a more sustainable future. The Framework will guide future issuances of green, social, and sustainable bonds, term loans, preferred stock, subordinated notes, and funding agreements (each a MetLife Sustainable Financing) by MetLife, Inc. and its subsidiaries, including Metropolitan Life Insurance Company and Metropolitan Tower Life Insurance Company.

The Framework addresses the four core components of the International Capital Markets Association Green Bond Principles, Social Bond Principles, and Sustainability Bond Guidelines and their recommendations on the use of external reviews and impact reporting:

  • Use of proceeds;
  • Project selection and evaluation process;
  • Management of proceeds; and
  • Reporting.

MetLife established a Sustainable Financing Council, comprising members from the Office of the Chief Investment Officer, Corporate Treasury, and Global Sustainability functions, which is responsible for the ultimate review and selection of eligible assets. Eligible assets will be subject to a review consistent with MetLife’s policies, including MIM’s ESG Investment Policy. 

In June 2020, MetLife Global Funding I issued our first-ever $750 million green bond, guided by the Sustainable Financing Framework and marking the U.S. Insurance industry’s first green funding agreement-backed note. An amount equal to the net proceeds from the issuance has been allocated to investments in a variety of green initiatives, including those associated with renewable energy, energy efficiency, green buildings, clean transportation, sustainable water and waste management, pollution prevention and control, and environmentally sustainable management of living natural resources and land use.

Learn more about the Framework, including details supporting asset eligibility criteria, as well as the Sustainable Financing Council.

In alignment with several of the UN SDGs, the Framework lays out eligibility criteria for an asset to be considered for inclusion. These include:

 

Goal #3: Good Health and Well-Being
Goal #4: Quality Education
  • Access to Essential Services

Goal #7: Affordable and Clean Energy

  • Renewable Energy
  • Energy Efficiency

Goal #11: Sustainable Cities and Communities

  • Green Buildings
  • Clean Transportation
  • Pollution Prevention and Control
  • Affordable Housing

Goal #12: Responsible Consumptionand Production

  • Sustainable Water and Wastewater Management
  • Pollution Prevention and Control

Goal #13: Climate Action
Goal #15: Life on Land

  • Environmentally Sustainable Management of Living Natural Resources and Land Use

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