Canada Pension Plan Investment Board (CPP Investments) is creating the Sustainable Energy Group (SEG), a new investment group that combines the organization’s experience in renewables, conventional energy, and new technology and service solutions.
Through the combination of the Energy & Resources (E&R) and Power & Renewables (P&R) groups, SEG will have approximately $18 billion in assets, making it highly competitive and flexible in the large and dynamic global energy sector.
According to the “Bloomberg New Energy Outlook 2020” report, around $15.1 trillion is expected to be invested in new power capacity alone by 2050.
Bruce Hogg will lead the SEG as Managing Director, Head of Sustainable Energy Group. Avik Dey, Managing Director, Head of Energy & Resources, will act as Senior Advisor to CPP Investments, supporting SEG and the Office of the CEO over the next six months.
Sustainable investing has gained tremendous momentum in the past few years. In fact, more than a quarter of all clients are currently considering or are already actively engaged in responsible and sustainable investing. That’s according to a 2020 study by deVere Group, an independent financial advisory and fintech organization.
A majority of asset owners globally actively integrate ESG factors into their investment process, according to a survey published last year by the Morgan Stanley Institute for Sustainable Investing and Morgan Stanley Investment Management.
The survey polled 110 public and corporate pensions, endowments, foundations, sovereign wealth entities, insurance companies, and other large asset owners worldwide, 92% of which had total assets over $1 billion.