ESG Integration

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ESG Integration

Our Approach to Environmental, Social and Governance (ESG) Considerations

MetLife Investment Management seeks to deliver client solutions that manage risk and create sustainable investment returns. We believe material ESG factors have an impact on investment performance and are important considerations to effectively manage risk and achieve our clients’ investments objectives.

To view MetLife Investment Management’s full ESG Investment Policy, click here.

Robust In-House Analysis

MetLife Investment Management’s investment methodology is based on a disciplined in-house research, underwriting and security selection process, which leverages the deep expertise of our seasoned investment teams. MetLife Investment Management’s investment capabilities include deal origination, asset acquisition, trading, portfolio construction and monitoring, risk analytics and risk management.

Risk management is ingrained in MetLife Investment Management’s culture and integrated throughout the organization. When assessing credit risk related to any investment opportunity, we conduct bottom-up, fundamental research and focus on multiple factors. ESG considerations are a vital part of our due diligence, as we seek to identify issues that may impact the reputation of a borrower as well as its financial condition, credit rating and transaction pricing. We believe that adhering to sound ESG practices can minimize financial risks, such as controversy-triggered loss of customers, fines, penalties and environmental clean-up costs.

Active Engagement

MetLife Investment Management believes active engagement with company leadership is a key to managing investment risk.  Investment analysts frequently interact and engage in discussions with a firm’s senior management throughout the initial due diligence process and as part of the portfolio monitoring process. Ongoing dialogue helps to raise awareness of sustainable business practices.

Industry Leadership

MetLife Investment Management (MIM) has been a Principles for Responsible Investment (PRI) signatory since March 2019.  As a signatory, we are obligated to report on our responsible investment activities and ESG integration practices annually. The highlights of our 2020 PRI reporting cycle for our core investment strategies are reflected within our assessment scorecard. A copy of our corresponding transparency report can be found here.1
 

To review additional information about MetLife Investment Management’s ESG integration efforts and its responsible investments, click here to view MetLife’s annual Corporate Responsibility Report.

Our Partnerships


Principles for Responsible Investment

MIM is proud to be a signatory to the Principles for Responsible Investment (PRI) since 2019. PRI’s mission states that they believe that “an economically efficient, sustainable global financial system is a necessity for long-term value creation, which will reward long-term, responsible investment and benefit the environment and society as a whole”. As an investment manager, MIM is committed to the adoption and implementation of PRI’s six Principles, which are a voluntary and aspirational set of investment principles that offer a menu of possible actions for incorporating ESG issues into investment practice.

 

Global Impact Investing Network (GIIN)

MetLife is a member of the Global Impact Investing Network (GIIN). The GIIN is the leading nonprofit dedicated to increasing the scale and effectiveness of impact investing. Impact investments are made into companies, organizations, and funds with the intention to generate social and environmental impact alongside a financial return. Impact investments can be made in both emerging and developed markets, and target a range of returns from below market to market rate, depending upon the circumstances. Our membership signifies a commitment to deepening our engagement in the impact investing industry.

 

ILPA Diversity in Action

MetLife believes that a diverse workforce and culture of inclusion are integral to how we do business and how we serve our customers. MIM, MetLife’s institutional investment management business, is proud to be a signatory to the Institutional Limited Partners Association’s (ILPA) Diversity in Action (DIA) Initiative that aims to support the private equity industry community to advance diversity, equity and inclusion efforts.

 

GRESB

MetLife Investment Management is a proud member of GRESB, and has participated in the annual real estate benchmark assessment for several funds since 2014. GRESB assessments are guided by what investors—and the industry—consider to be material issues in the sustainability performance of real asset investments.

 

ENERGY STAR ® Partner of the Year

The ENERGY STAR Partner of the Year Award recognizes MetLife’s efforts to benchmark and certify both corporate office properties and investment properties using EPA’s ENERGY STAR Portfolio Manager. It also recognizes the company’s work to promote energy efficiency practices and ENERGY STAR resources to all its stakeholders. MetLife has achieved ENERGY STAR certifications for 24.5 million square feet of real estate, contributing to reduced energy use and emissions across its portfolio. In 2021, MetLife was given The Sustained Excellence award, the highest honor bestowed by the ENERGY STAR program. It is awarded to ENERGY STAR partners that have made a long-term commitment to fighting climate change and protecting public health through energy efficiency and have demonstrated leadership year over year.

 


DOE Better Buildings Challenge Partner

Recognizing the impact of buildings on people and the environment, MetLife Investment Management works towards healthy, productive, efficient, and prosperous real estate. As a Better Buildings Challenge Partner, we are committed to meeting an energy reduction target of at least 20% by 2026 over our 45 million-square-foot portfolio by continuing to implement environmental, social and governance (ESG) factors at the property level.

 


USGBC Member

MetLife Investment Management believes in the USGBC mission of transforming buildings in order to provide everyone with a better, more sustainable life. We actively use the LEED rating system to improve the sustainability of our new and existing assets through reduced energy and water consumption, avoided waste, savings on maintenance costs, and improved occupant comfort and wellbeing.

1 MIM also received scores in certain listed equity categories, which are not part of MIM’s core investment strategies offered to third parties and thus are not included in MIM’s assessment scorecard as provided above.