CPP Investments boss says he will continue to invest in the energy sector

TORONTO, May 19 (Reuters) – The Canada Pension Plan Investment Board will continue to invest in the fossil fuel industry even as it seeks to meet its sustainability goal, CEO John Graham said on Thursday. , adding that the fund was “cautiously optimistic” about market returns. given the Russian-Ukrainian war, the pandemic and supply chain issues.

Canada’s largest pension fund, known as CPP Investments, will not outright pull out of energy companies on their way to net zero, but will instead fund companies to help them transition to net zero. net zero goal, Graham said.

“We will not pursue a general divestment path. We will continue to invest in energy, oil and gas and hard-to-shrink sectors with a view to being an engaged active investor,” Graham said in an interview.

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CPP, which managed C$539 billion ($420 billion) at the end of March, has set a goal of achieving net zero greenhouse gas emissions by 2050 for its portfolio companies and own operations.

Some C$26 billion of CPP funds are committed to sustainable energy through private equity investments.

CPP Investments manages the pensions of 21 million Canadians.

It closely monitors inflationary trends, and Graham said the fund is betting on its diversified portfolio of investments to protect retirees from global market volatility.

RPC has produced a net return of 6.8% over the past fiscal year and has generated an 11% return in a decade. Investments in real estate assets such as infrastructure, real estate and stocks have helped the company gain “natural protection” against inflationary pressures, Graham said.

CPP said it has no direct investments in Russia, just “passive and indirect” investments through public markets. “They may have some exposure to Russia. But it’s the management team and the board of these companies that are thinking about what to do,” Graham said.

Although the Indian market has underperformed this fiscal year, Graham said the CPP continues to be “constructive for investing in India.”

($1 = 1.2823 Canadian dollars)

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Reporting by Divya Rajagopal Editing by Denny Thomas and Chris Reese

Our standards: The Thomson Reuters Trust Principles.

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