Caisse investing in wind and solar projects, AIMCo in German real estate

The Canada Pension Plan Investment Board is launching a investment group that will focus on renewables, conventional energy and new technology and service solutions.

The sustainable energy group combines the CPPIB’s energy and resources group with the power and renewables group for a total of $18 billion in assets, according to a press release. The group’s diversified portfolio primarily comprises long-term tangible assets, including renewable-energy sources such as wind, solar and hydro, as well as conventional power, upstream oil and gas, energy midstream, carbon capture and liquefied natural gas. It also invests in areas of innovation, technology and services to the energy industries and manages agriculture investments, the release said.

Read: CPPIB investing in U.S. real-estate developments, European wind farms

The new division will be led by Bruce Hogg, managing director and head of the sustainable energy group. Avik Dey, managing director and head of energy and resources, will act as senior advisor to the CPPIB, supporting the new group and the office of the chief executive officer over the next six months, following which he has decided to return to his entrepreneurial roots, the release noted.

“The creation of the sustainable energy group with significant and flexible capital positions us extremely well to pursue the best market opportunities across the entire energy spectrum,” Hogg said in the release. “This, coupled with a deep, highly-experienced team, will allow [the group] to generate significant long-term value for the [CPPIB], making it highly competitive and flexible in the large and dynamic global energy sector.”

Read: CPPIB formally sets out ESG expectations for portfolio companies

In the release, Deborah Orida, senior managing director and head of real assets at the CPPIB, said the energy sector is one of the most important enablers of the global economy. “Along our unique investment horizon, we see a dramatic opportunity to invest in and support the evolution and innovation occurring across the sector. [The CPPIB] is exceptionally well placed to be among the winners, in part through our partnership model alongside companies willing to grasp the future and forge ahead.”