MetLife has announced it will spend $500m (£357m) on impact investments tackling climate change and racial equity weeks as it responds to investor concern over its environmental, social and governance (ESG) policies.
The announcement follows news reported last week in Corporate Adviser that global asset manager Legal & General Investment Management (LGIM) had divested from MetLife over climate policy concerns, sparking debate over whether employer procurement departments of listed companies will increasingly consider ESG factors as they assess their own carbon intensity ratings in response to new Task Force on Climate-related Financial Disclosures (‘TCFD’) reporting requirements due to take effect from April 2022.
Through premium credits and contributions, MetLife and MetLife Foundation has provided more than $250m (£178m) of relief to help people around the world cope with the impacts of Covid-19.
MetLife Foundation has committed an additional $5m (£3.6m) over three years to promote Black educational and career opportunities, Black business ownership, and racial justice initiatives, supplementing $10m (£7.2m) in existing annual contributions to support diverse communities and racial equity. MetLife also launched Excelerate, a talent stewardship program to accelerate mid-level Black and Latino employees into officer-level roles at the company.
MetLife has committed to reducing location-based greenhouse gas emissions by an additional 30 per cent from 2019 to 2030. MetLife says its operations have been carbon neutral since 2016 and its green investments now exceed $28.7bn (£21bn)
MetLife launched a Sustainable Financing Framework to further align its investment and business priorities, and issued a $750 million green funding agreement, securing the U.S. insurance industry’s first green funding agreement-backed note.
LGIM divested from MetLife because it is not disclosing Scope 3 emissions associated with its investments, although it has made some restrictions on thermal coal.
TCFD requirements are new duties on listed companies with more than 500 staff or non-listed companies with turnover over £500m to disclose climate-related financial information on governance, strategy, risk management and metrics & targets.
Commercial companies with a UK premium listing are already required by new FCA rules to publish a compliance statement in their annual financial report, stating whether they have made disclosures consistent with the recommendations of the TCFD or provide an explanation if they have not done so. The first annual financial reports subject to this rule will be published in spring 2022.
MetLife president and CEO Michel Khalaf says: “As a global insurer and purpose-driven company, we strive to create a more confident and sustainable future for all of our stakeholders,” said. “Building on our 153-year legacy of creating financial security, we are strengthening our commitments to the environment and climate, equity and inclusivity, health and wellbeing, and economic growth for disadvantaged communities.”