Sustainable and Responsible Investments

MetLife Investment Management (MIM) takes a rigorous, research-based approach to identifying investment opportunities for our institutional investor clients, with experience across short-, medium- and long-term investment horizons and multiple asset classes. In an effort to ensure that our clients can honor their financial commitments and meet their goals, MIM seeks to invest in assets that offer competitive, risk-adjusted returns and integrate relevant environmental, social and governance (ESG) considerations into our investment decision-making process.

Investing Sustainably Through ESG Integration

We pursue investment practices that support a better world, reflecting our values and those of our stakeholders. Our sustainable investment strategy incorporates a full picture of both relevant ESG risks and opportunities into decision making across our portfolio. This enables us to invest in ways that can help support sustainable long-term returns while contributing to social and environmental benefits.

 

To view MIM's ESG Investment Policy, click here.

 

Reducing ESG Risk

We apply an ESG lens across the MIM-managed portfolio in order to invest in companies whose practices reflect our values. MIM’s investment methodology is based on a disciplined in-house research and underwriting process that leverages the expertise of our seasoned investment teams. Our Sustainable Investments Strategies group, formed in 2018, strengthens MIM’s ESG platform and builds support for a deeper understanding and consideration of ESG principles across MIM.

 

In March 2019, MIM became a signatory to the Principles for Responsible Investment (PRI). PRI is a global framework that outlines key considerations in the investment decision making process, with a specific focus on ESG factors. Logan Circle Partners, which MIM acquired in 2017, has been a signatory to PRI since 2014.

 

Also in early 2019, MIM established an ESG Integration Council to communicate and socialize ESG policies and practices and facilitate best practices across teams and functions.

Our Three-Step ESG Investment Process

Research

We begin our investment process with fundamental research to assess financial risk, which includes sector-specific ESG considerations.

Manage

Evaluation of ESG factors in our screening process is essential in evaluating new transactions, and we periodically review existing investments to ensure that they remain within our ESG parameters.

Engage

We engage in ongoing dialogue with the senior management of the organizations we invest in to understand their strategic priorities and day-to-day practices with the goal of ensuring that their goals and activities remain aligned with our ESG principles.

Pursuing Responsible Investments

In 2018, MIM invested more than $7 billion1 to help finance projects that multiply our contribution to social and environmental benefits. At December 31, 2018, MIM managed Responsible Investments totaling over $52 billion4 encompassing renewable energy projects, infrastructure, municipal bonds, and impact investments and affordable housing. MIM has a long history of responsible and impact investing, with a focus on four core areas: Green Investments, Impact and Affordable Housing Investments2, Infrastructure Investments and Municipal Bonds3 Investments.

Green Investments

We have a long track record of support for green buildings and renewable energy projects, including wind and solar. At December 31, 2018, we held equity stakes in 60 LEED-certified real estate properties and made further investments in renewable offshore wind projects in the U.K.

Investments held at Dec. 31, 2018: $16.6B

Impact and Affordable
Housing Investments2

We invest in impact and affordable, high-quality housing projects that build financial health and bring tangible benefits to communities. In 2018, we increased the supply of loans to micro-, small- and medium-sized businesses in unbanked and underserved markets globally.

Investments held at Dec. 31, 2018: $2.6B

Infrastructure Investments

We create local jobs and economic benefits via infrastructure projects that build or upgrade airports, ports, roads, pipelines, transmission lines and power generation - including wind and solar projects. In 2018, we also invested in U.S. not-for-profit hospitals and healthcare facilities in underserved communities.

Investments held at Dec. 31, 2018: $17.1B

Municipal bonds3 Investments

We support infrastructure, education and community services, spanning around 400 municipalities in 47 states and Washington, D.C. In 2018, we invested in Pennsylvania's Planning and Construction Workbook program, which facilitates loans to school districts for eligible school construction projects.

Investments held at Dec. 31, 2018: $16.3B

MIM Responsible Investments Committed in 20184

MIM also strives to support financial services firms that embrace diversity. In 2018, MIM conducted over $2 billion in business with capital markets firms owned by, or focused on employing, minority executives, women and disabled veterans.

ESG and Impact Investing totals shown above include assets invested by MIM on behalf of clients, assets of the MetLife general account and assets of MetLife Foundation.
1 At estimated fair value. See Explanatory Note for non-GAAP financial information, definitions and reconciliations.
2 Previously referred to as “Community and Affordable Housing Investments”. In 2018, updated to “Impact and Affordable Housing Investments” to better align with the Global Impact Investing Network (GIIN) definition.
3 Municipals or Municipal Bonds include taxable and tax-exempt revenue bonds, and to a much lesser extent, general obligations of states, municipalities and political subdivisions.
4 Previously referred to as “Impact Investments.” In 2018, updated to “Responsible Investments” to better align with the GIIN definition.

Corporate Responsibility at MetLife, Inc.

MetLife Investment Management (“MIM”) is MetLife, Inc.’s institutional management business. MetLife is committed to giving people, families, and communities what they need to adapt to their changing world.