In brief: MassMutual’s £400m renewal for ‘environmental impact’

MassMutual is re-upping with Low Carbon to finance greenfield solar PV and offshore wind projects.

MassMutual is committing £400 million ($519 million; €467 million) to “positive environmental impact” via a partnership with renewables developer Low Carbon. The investment is debt capital to finance Low Carbon’s greenfield solar PV and offshore wind projects in Europe and North America. It is a major commitment from MassMutual: although the insurance company has an investment portfolio worth $248 billion, making it one of the US’s biggest investors, its typical bitesize for debt investments is between $50 million and $100 million, PEI Group’s database shows.

“We 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,” MassMutual’s chief investment officer Eric Partlan said in an emailed statement. “This increased investment reflects Low Carbon’s track record and leadership in developing, investing in, and operating large-scale renewable energy that is making a positive environmental impact.”

Low Carbon is aiming to develop 20GW of new renewable energy capacity by 2030. MassMutual announced an equity investment of an undisclosed size with Low Carbon in 2021, which (according to the announcement at the time) “reflects MassMutual’s commitment to help drive the transition toward a low-carbon economy”. The investment was also intended to “support Low Carbon’s ambition to raise third-party investment funds” to execute its 20GW goal; however, Low Carbon has not announced a pooled fund since then.