TORONTO, May 19 (Reuters) – The Canada Pension Plan Investment Board will keep investing in the fossil fuel industry even as it seeks to meet its sustainability target, CEO John Graham said on Thursday, adding the fund was “cautiously optimistic” about market returns given the Russia-Ukraine war, pandemic and supply chain issues.
Canada’s biggest pension fund, known as CPP Investments, will not outright exit from energy companies on its path toward net zero goals, but instead will finance companies to help them transition towards net zero goals, Graham said.
“We will not pursue a path to blanket divestment. We will continue to invest in energy, oil and gas and hard to abate sectors with a view of being an engaged active investor,” Graham said in an interview.
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CPP, which had C$539 billion ($420 billion) under management as of end March, has set a goal of achieving net-zero greenhouse gas emissions by 2050 for its portfolio companies and its own operations.
Some C$26 billion of CPP’s funds are in sustainable energy through private equity investments.
CPP Investments manages pensions for 21 million Canadians.
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