Sustainability For Our For Our Creating Value For the For Our Managing Appendix at MetLife Workforce Customers as an Investor Environment Communities Responsibly Paris Agreement: A legally binding international Responsible Investments: Investments that intend United Nations (UN) Global Compact: treaty on climate change. The agreement’s to achieve both a market financial return and A voluntary initiative based on CEO commitments goal is to limit global warming to well below 2, promote social and/or environmental benefits. to implement universal sustainability principles to preferably to 1.5, degrees Celsius, compared to Responsible investments at MetLife include green take steps to support UN goals. pre-industrial levels. investments, infrastructure, municipal bonds, UN Global Compact’s Target Gender Pay Equity: Providing equal pay for equal work. affordable housing and impact investments. Equality Initiative: A gender equality accelerator Preferred Provider Organization (PPO): Sustainable Financing Framework: Guidance for program for participating companies of the UN A type of health plan that contracts with medical future issuances of green, social and sustainable Global Compact. providers, such as hospitals and doctors, to bonds, term loans, preferred stock, subordinated Unit-Linked Insurance Plan: A multi-faceted create a network of participating providers. notes and funding agreements (each a “MetLife product that offers both insurance coverage and Sustainable Financing”) by MetLife, Inc. and investment exposure in equities or bonds. Principles of Responsible Investment (PRI): its subsidiaries, including Metropolitan Life The six Principles for Responsible Investment are Insurance Company and Metropolitan Tower UN Sustainable Development Goals (SDGs): a voluntary and aspirational set of investment Life Insurance Company. The 2030 Agenda for Sustainable Development, principles that offer a menu of possible actions Total Compensation: With respect to a year, adopted by all United Nations Member States in for incorporating ESG issues into investment the total of base salary earnings during the year, 2015, provides a shared blueprint for peace and practice. The Principles were developed by annual incentive awards for performance in that prosperity for people and the planet, now and investors, for investors. In implementing them, year, stock-based long-term incentive awards into the future. At its heart are the 17 SDGs, which signatories contribute to developing a more in consideration of performance in that year are an urgent call for action by all countries— sustainable global financial system. and potential for future contributions. Items developed and developing—in a global partnership. Private Sector Alliance to Promote Financial such as sign-on payments and others that the UN Women’s Empowerment Principles: A set Inclusion: An initiative to develop collaborative Compensation Committee recommends, but of principles offering guidance to business on business models that help companies do well which are not determined under the company’s how to promote gender equality and women’s financially, and to expand inclusion and financial general executive compensation framework, empowerment in the workplace, marketplace health for underserved customer segments. are not included. Retirement benefits, medical and community. Pro Bono Services: Professional work programs and potential termination payments U.S. Department of Energy’s Better Building undertaken voluntarily and without payment. are also not included. Challenge: An initiative to encourage institutions Prudent Risk Management: A legal obligation to Total Compensation Framework: The sum of to improve building energy efficiency by at least 20% always act with the responsibilities, care and skill wages and benefits paid to employees. over 10 years and share their strategies and results. of a person showing ordinary prudence. U.K. Social Housing Investments: Includes U.S. Low-Income Housing Tax Credit Real Estate Equity: Includes LEED-, Energy Star- social housing providers in the U.K. and overseas Investments: Includes federal tax credit equity and Fitwel-certified real estate equity investments. territories through investments in nonprofit investments financing affordable rental housing organizations that provide rental homes at below- and state tax credit investments that are made Renewable Energy Sources: These include solar, market rents to low-income earners, including with substantially similar requirements. Affordable wind, hydropower, biomass, geothermal resources teachers, nurses, council workers and the elderly units in a project may charge no more than 30% and hydrogen derived from renewable resources. and infirm (privates). of a household’s income, and the average income of all households in assisted units is 60% of area median income or below. 2021 SUSTAINABILITY REPORT 91