Canada’s pension fund, Caisse de dépôt et placement du Québec (CDPQ), intends to invest a total of JPY70bn (USD474m) in the Japanese renewable energy company Shizen Energy, as reported by Nikkei Asia on October 24. The investment comprises a JPY50bn (USD338.14m) co-investment framework regarding renewable energy power generation in Japan and abroad, as well as a JPY20bn (USD135.25m) subscription to Shizen Energy convertible bonds in October. Following the investment, CDPQ was given a seat on the board of directors of Shizen Energy to determine the specific development projects to invest in. Shizen Energy has raised a total of JPY74.4bn (USD503.15m) this year, including the investment from CDPQ. The Japanese corporation will accelerate the construction of renewable power plants, energy digitization, and human capital expansion.
As of 2021, CDPQ manages a net asset of around CAD420bn (USD308bn). The pension is currently putting more emphasis on environmentally friendly initiatives and plans to spend CAD54bn (USD39.65bn) on renewable energy projects by 2025. With ESG investing growing to become a mainstream investment strategy, by 2020, 521 asset management companies with a combined USD23.5tr in assets under management have adopted responsible investment practices. At the UN Climate Action Summit in September 2019, CDPQ, Allianz [ALV:GR], the French deposit fund Caissedes Dépots, and a number of other organizations together announced the Net Zero Asset Owner Alliance (NZAOA), whose overarching objective is to achieve zero net greenhouse gas emissions by the year 2050.