SPRINGFIELD, Mass. & BOSTON--(BUSINESS WIRE)--Massachusetts Mutual Life Insurance Company (MassMutual) today announced new commitments that will transition both its portfolio and operations to net zero, advancing a decarbonized economy. The company’s climate change actions will benefit its policyowners, employees, communities and the economy as a whole, while helping ensure its future strength. MassMutual believes that a sustainable future requires immediate and collaborative action to create a path forward.
These commitments, which require abating greenhouse gases added to the atmosphere and balancing emissions output, include:
- Net Zero operations by 2030: Achieving net zero greenhouse gas (GHG) emissions in MassMutual’s operations by 2030 by reducing emissions, purchasing renewable energy, and removing the remaining footprint through credible offsets; and,
- Net Zero investment portfolio by 2050: Transitioning to net zero GHG emissions in MassMutual’s investment portfolio1 by 2050 through responsible investment and stakeholder collaboration, making MassMutual the first US-based mutual insurance company to make this pledge.
“Protecting the environment and addressing the lasting effects of climate change are among the most pressing challenges faced by our world today,” said Roger Crandall, Chairman, President and CEO of MassMutual. “As a company with a long-term perspective that has served its customers and communities for nearly 170 years, we are accelerating our sustainability efforts in both how we invest and how we run our business. We believe this approach will not only help us enhance our growth and profitability but enable us to remain committed to a greater good that will create a better, more sustainable future for generations to come.”
MassMutual is currently partnering with its outside asset managers, including its wholly owned global asset management subsidiary Barings LLC, to evaluate its General Investment Account that represents $222B assets under management1. With the guidance of experts and industry groups, the assessment of the environmental, social and governance components that make up the portfolio will allow MassMutual to develop specific interim GHG reduction targets across areas of its portfolio to be included in its transition plan to net zero GHG emissions by 2050.
Over the next year, MassMutual will develop a detailed roadmap to achieve both net zero commitments, which will evolve as more research and technology in the space become available. Progress will be tracked through annual, public reporting aligned with global reporting standards. The company’s commitments were developed to align with Article 4.9 of the Paris Agreement and the Commonwealth of Massachusetts net zero by 2050 goals.
As an initial step toward transparent communication, in January 2021 MassMutual became a signatory of the United Nations-supported Principles for Responsible Investment (PRI), an international global network of asset managers, owners and service providers working together to put responsible investment into practice. Barings has been a signatory since 2014, helping MassMutual and other clients work toward their responsible investment goals.
These commitments expand upon the company’s existing sustainability activities.
MassMutual is a leading mutual life insurance company that is run for the benefit of its members and participating policyowners. Founded in 1851, the company has been continually guided by one consistent purpose: we help people secure their future and protect the ones they love. With a focus on delivering long-term value, MassMutual offers a wide range of protection, accumulation, wealth management and retirement products and services. For more information, visit www.massmutual.com.
|1 Investment portfolio refers to MassMutual’s General Investment Account, which had $222 billion of Invested Assets as of 12/31/2020.