Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity, and Inclusion (DEI)
• Human Capital Management
• Cybersecurity and Data Privacy
• Responsible Products
• Responsible Investments
• Supplier Diversity
• Community Investment
• Corporate Governance

Environmental Achievements

• Developed the first Brighthouse Financial Greenhouse Gas (GHG) Inventory.

Social Achievements

• Launched a public webpage featuring key ESG data points.
• Incorporated DEI performance factors into executive compensation.
• Established a Supplier Diversity Program.
• Supported approximately 60 non-profit organizations.

Governance Achievements

• Completed the company’s first ESG materiality assessment.
• Launched an internal, cross-functional climate risk working group.
• Adopted an ESG Investment Policy.

Climate Goals & Targets

Environmental Challenges

• Climate-related risks (physical and transition risks to investments and operations)
• Cybersecurity threats and data privacy concerns
• Evolving regulatory landscape for ESG disclosures
• Maintaining a competitive workforce in a changing labor market

Mitigation Strategies

• Established a Climate Risk Working Group (CRWG) to assess climate-related risks.
• Implemented robust cybersecurity and data privacy programs.
• Monitored regulatory initiatives and engaged with stakeholders.
• Focused on employee engagement, well-being, and development to attract and retain talent.

Supply Chain Management

Responsible Procurement

• Supplier Diversity Program

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Natural disasters

Transition Risks

• Changes in energy markets
• Regulatory developments
• Technology displacement

Opportunities

• Investment in sustainable investments

Reporting Standards

Frameworks Used: SASB, TCFD, UN SDGs

Awards & Recognition

• America’s Most Trustworthy Companies (Newsweek, 2022)
• Healthiest Employers of Greater Charlotte (Charlotte Business Journal, 2019-2022)
• Recognized by the Women’s Forum of New York for Board gender diversity

Environmental Metrics

ESG Focus Areas

• Being a Great Place to Work
• Diversity, Equity, and Inclusion (DEI)
• Advancing Financial Security Through Responsible Products
• Promoting Business Resilience Through Sustainable Operations
• Climate Change and the Environment

Environmental Achievements

• Developed Brighthouse Financial’s first annual Greenhouse Gas (GHG) Inventory.

Social Achievements

• Launched seven employee network groups (ENGs).
• Established Brighthouse Scholar Connections, Inc., a non-profit organization that awards scholarships.
• 91% of employees participated in the annual employee engagement survey; 94% indicated pride in working at Brighthouse Financial; 93% considered it an inclusive workplace.
• Annual voluntary turnover rate of 12%; 34% of new open roles filled by existing employees.

Governance Achievements

• Adopted a majority voting standard for uncontested director elections.
• Eliminated supermajority voting requirements to amend certain provisions.
• Strengthened sustainability governance practices and strategy by establishing formal ESG policies and procedures.

Climate Goals & Targets

Environmental Challenges

• Data availability and measurement uncertainty in calculating certain Scope 2 and Scope 3 emissions.
• Evolving ESG landscape and stakeholder interest in data quality and reporting.

Mitigation Strategies

• Established a centralized ESG data repository.
• Documented ESG-related risks, processes, and controls.
• Created more systematized reporting processes and procedures, formally integrating the three lines of defense model.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Diversity Program

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Natural disasters

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: SASB, TCFD

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Brighthouse Shield Level Pay Plus® Annuities
• Variable annuities with the optional FlexChoice Access living benefit rider
• Janus Henderson Global Sustainable Equity Portfolio

Awards & Recognition

• Most Trustworthy Companies in America (Newsweek)
• Healthiest Employers of Greater Charlotte (Charlotte Business Journal)
• Recognized by the Women’s Forum of New York
• Barron’s Best Annuities
• AWD’s 2021 Partner of the Year award

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Sustainable Operations
• People
• Financial Security
• Climate Change and the Environment

Environmental Achievements

• Reduced total CO2e emissions from 26,418 metric tonnes in 2022 to 25,986 metric tonnes in 2023.

Social Achievements

• 85% participation rate in annual employee engagement survey; 95% of employees surveyed indicated feeling proud to work at Brighthouse Financial; 93% of employees consider Brighthouse Financial to be an inclusive workplace; voluntary turnover rate of approximately 7%; 36% of new open roles filled by existing employees; supported 80+ local community organizations; 44% gender diversity on the Board; increased impact investment target from $100M to $150M.
• Launched Connect Days to enhance employee connections in a hybrid work environment.

Governance Achievements

• Established Sustainability Steering Committee; enhanced sustainability governance structure; incorporated DEI factors into executive compensation program; achieved 44% gender diversity on the Board; adopted a majority voting standard for uncontested director elections; eliminated supermajority voting requirements.

Climate Goals & Targets

Environmental Challenges

• Climate change poses various risks to the company, global financial markets, society, and the planet; managing transition risks to investments; business continuity; data governance.
• Data gaps and lack of standardized methods for measuring climate-related metrics.

Mitigation Strategies

• Integrating ESG and climate-related risk considerations into the enterprise risk management framework; monitoring regulatory trends; climate research, data, and analytics; risk-impact assessments; stakeholder engagement and collaboration; managing transition risks to investments through ESG integration in investment management; business continuity program; disaster recovery program; crisis management program; ESG Data Management and Disclosure Policy; GHG Emissions Accounting Procedures.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Diversity Program

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Environmental hazards
• Natural disasters

Transition Risks

• Regulatory changes
• Market shifts
• Technological displacement

Opportunities

• Investment in new markets and industry sectors, including those projected to deliver long-term growth through advancements in energy innovation and efficiency

Reporting Standards

Frameworks Used: SASB, TCFD

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Brighthouse SecureKeySM Fixed Indexed Annuities (FIA)
• Brighthouse SmartGuard Plus®

Awards & Recognition

• Most Trustworthy Companies in America (Newsweek)
• Healthiest Employers of Greater Charlotte (Charlotte Business Journal)
• AWD Partner of the Year