AUM in Action

CPP Investments, IKAV Partner to Acquire Aera Energy 

Canada Pension Plan Investment Board (CPP Investments) has partnered with international asset management group IKAV to acquire Californian energy producer Aera Energy. The partnership looks to accelerate Aera Energy’s ability to further reduce carbon intensity and support the development of carbon capture and storage and other emerging technologies. This agreement will see CPP Investments purchase 49% of Aera Energy, California’s second-largest oil and gas producer, which accounts for nearly 25% of the state’s production. Aera Energy was originally created as a joint venture between oil giants Shell and ExxonMobil. CPP Investments and IKAV intend to invest in a renewable energy portfolio to power Aera’s existing operations, with renewable power deployed across Aera’s land holdings, while also repurposing selected legacy oil and gas infrastructure to create carbon capture and storage capability. Bruce Hogg, Managing Director and Head of Sustainable Energies at CPP Investments, said: “CPP Investments believes that enabling emissions reduction and business transformation in the energy sector can drive strong returns for long-term investors as part of the whole economy transition, and partnering with a like-minded investor like IKAV presents an excellent opportunity to put that decarbonization investment approach into action.”

The practical information hub for asset owners looking to invest successfully and sustainably for the long term. As best practice evolves, we will share the news, insights and data to guide asset owners on their individual journey to ESG integration.

Copyright © 2024 ESG Investor Ltd. Company No. 12893343. ESG Investor Ltd, Fox Court, 14 Grays Inn Road, London, WC1X 8HN

To Top