Investing to Fuel Growth and Shape a Better World

MassMutual serves stakeholders, not shareholders, and this allows us to prioritize investments aimed at generating positive impact for decades to come. This mindset applies to how we integrate important environmental, social, and governance considerations across our business, which has helped us with our goal to deliver strong, consistent, long-term financial performance.

Leveraging Investments to Break Systemic Barriers

Leveraging our capital to address societal needs and expand access to economic opportunity strengthens the communities in which we operate. In addition, it enables MassMutual to capture the market opportunity that exists by investing in and serving the needs of all Americans.

MassMutual is focused on generating positive, measurable social and environmental impact while addressing inequality in capital markets. In just over two years, our total impact investing commitment has increased to a total of $300 million, underscoring the tremendous opportunity in the companies and funds that are getting overlooked because of systemic barriers.

Two years ago, we launched the MassMutual Catalyst Fund (MMCF), a $50 million commitment to invest in Black-owned businesses in Massachusetts, as well as technology- and sustainability-focused companies outside of Boston. Our leadership and participation in funding rounds has positively impacted a number of businesses. For example, our initial investment in HourWork, a Boston-based recruitment and retention platform for hourly workers in the quick service restaurant industry, helped the business secure more funding through additional investment rounds. Today, HourWork is one of MMCF’s best-performing investments and has experienced significant growth and engaged millions of hourly workers on its platform.

In 2023, we launched a second MMCF of $100 million. Building on the $50 million Fund I launched in 2021, Fund II’s $100 million commitment will continue to concentrate capital in Black-led and rural-based businesses in Massachusetts while also expanding its footprint nationally. In addition to MMCF, MassMutual also dedicated $150 million to the First Fund Initiative to invest capital in Black, Latino, and Indigenous fund managers to advance racial equity.

Working Toward a Low Carbon Economy

We also actively pursue opportunities to invest in climate solutions that support the transition to a low-carbon economy and our responsibility to generate long-term value for our policyowners. In 2023, MassMutual announced an increase of up to £400 million (US$500 million) worth of investment in Low Carbon Limited, a renewable energy investment company. This additional capital will be directed into large-scale renewable energy projects across the U.K., Europe, and North America. This builds off our initial partnership with Low Carbon, announced in 2021.

To better enable MassMutual to create an innovative investment platform to manage sustainable investment assets and provide solutions-based financing for clean energy projects, in 2023 we purchased a majority interest in Counterpointe Sustainable Advisors, LLC. This investment will ultimately help reduce the carbon footprint of commercial real estate and energy infrastructure across the U.S.

For more information on MassMutual’s climate strategy, including our Net Zero commitments and our approach to climate risk management, please see our annual sustainability report.

Innovating to Shape Future Growth

As a leading mutual life insurance company, we take seriously our role in helping to build a future where challenges are met, ideas are supported, and each individual and community is linked to the support and resources they need to thrive.

MassMutual Ventures (MMV), our multi-stage, global venture capital firm, is an important vehicle by which MassMutual gains insights into new trends, technologies, and solutions that are being developed throughout the world. Encompassing a diverse team of investment professionals, former entrepreneurs, and operators with deep experience in starting and scaling companies, the team invests across the financial technology, enterprise software as a service, cybersecurity, health technology, and climate technology sectors.

MMV continues to back founders building category-defining companies that are fundamentally transforming their industries. With $1 billion of assets under management, MMV invested in 13 new companies, made follow-on investments into 14 existing portfolio companies, and made a number of secondary investments during 2023. The firm also expanded its team, hiring new employees across its Boston, London, and Singapore offices.

Positioning Massachusetts as a Fintech Hub

Technology and business capabilities are changing rapidly — the need to continuously innovate is critical. Since 2018, MassMutual has partnered with startups and talented entrepreneurs to address real-world challenges, such as ensuring financial inclusion and education for all and further enabling digitalization. We continue to lead innovation through the MassChallenge Fintech global startup accelerator program, yielding dozens of startup engagements. MassMutual’s engagement with fintech fosters innovation and thriving ecosystems that introduce new products and services to help consumers address their needs, on their terms.

MassMutual’s leadership in the Mass Fintech Hub, a public-private partnership comprising a network of fintech leaders, financial experts, academics, public sector leaders, and venture capitalists who empower fintech startups to achieve success, has helped position Massachusetts as one of the top fintech ecosystems in the world. A Reassessment of the Fintech Industry, administered by KPMG in 2023, confirmed that the launch of the Mass Fintech Hub has made a significant impact in positioning Massachusetts as the global Fintech Hub.

In October 2023, MassMutual sponsored Boston FinTech Week, an inclusive conference hosted by the FinTech Sandbox, where thousands of industry leaders and emerging fintechs from around the world attended. The event brought entrepreneurs and industry innovators together to explore the advances in fintech that are blurring the distinction between industries, erasing borders, and breaking boundaries. The 48 content and networking sessions and more than 100 speakers attracted over 4,000 registrants from 17 countries.