Canada Pension Plan Investment Board Deals with Asset Shifting to Clean Energy, Energy News, ET EnergyWorld
By Maiya Keidan
TORONTO: The Canada Pension Plan Investment Board (CPPIB) is looking to invest in the global transition to renewable energies in order to become a global leader in sustainability, the company’s head told Reuters on Thursday.
“One of the keys here is investing in transition with the belief that many of the existing conventional actors will lead the future in moving the world to a carbon-free world,” said John Graham, President and CEO of CPPIB in a Interview after the company reported a record 20.4% net return in its fiscal year ended March.
The pension manager announced last month that he would create a new investment group that would create investment opportunities in renewable energy, conventional energy, and new technology and service solutions.
According to a company spokesperson, CPPIB’s exposure to renewable energy producers increased from $ 6.6 billion as of March 31, 2020 to $ 7.7 billion as of March 31, 2021.
“This is a group that I firmly believe we should be world leaders in,” said Graham.
CPPIB’s net worth rose 21.4% year over year to $ 497.2 billion ($ 410.4 billion) in late March 2021, aided by strong increases in real energy and resource assets.
While most asset classes returned gains over the period, Canadian public equities and real energy and resource assets were the most profitable, returning 40.8% and 45.8%, respectively.
Real estate investments that struggled during the coronavirus pandemic lost 4.1% for the fund in the fiscal year, after gaining 5.1% the previous year, while marketable government bonds lost 10.9% in 2021, compared to gains of 16, 1% in 2020.
Graham was appointed to his new position in February after former CEO Mark Machin submitted his resignation because of a trip to the United Arab Emirates where he received a vaccination against COVID-19. ($ 1 = Canadian $ 1.2115) (Reporting by Maiya Keidan; Editing by Alex Richardson, Estelle Shirbon, and Marguerita Choy)