Climate risks, both physical and transition risks, could impact MetLife’s business operations, investments, customers and supply chain. These risks, as well as associated opportunities, are identified, measured, monitored, managed and reported to MetLife’s Board of Directors, when appropriate, through our enterprise-wide risk management framework. We have integrated climate risks into our investments underwriting standards, and we conducted a qualitative risk assessment and are developing quantitative scenario analysis capabilities. We have plans to build on our work and measure the carbon intensity of our investment portfolio and develop metrics, including stress tests and scenario analysis, to assess climate risks.
MetLife launched a global Climate Advisory Council to enhance our governance of climate risk. The Council is chaired by our Chief Risk Officer and includes our Chief Financial Officer, Chief Investment Officer, General Counsel, Chief Auditor, Head of Investor Relations and other executive-level and management-level staff.
MetLife has also established a Climate Risk Working Group (CRWG) in Europe, comprising principally members of our Executive Management Committee to develop a comprehensive approach to managing climate risk for MetLife Europe and MetLife Europe Insurance.
For more information on our work on climate change, please read our statement on climate change.