By Maiya Keidan

TORONTO: The Canada Pension Plan Investment Board (CPPIB) is seeking investment in the global transition to renewable energy as it aspires to become a global leader in sustainability, has the head of the company told Reuters on Thursday.

“One of the keys here is to invest in the transition with the idea that in order for the world to move to a zero carbon world, many existing conventional actors will become leaders in the future,” John Graham, president- CEO of CPPIB said in an interview after the company reported a record annual net return of 20.4% in its fiscal year ended in March.

The pension manager announced last month that he is creating a new investment group that will generate investment opportunities in renewable energy, conventional energy and new technologies and service solutions.

The NEB’s exposure to renewable energy producers increased to C $ 7.7 billion as of March 31, 2021, from C $ 6.6 billion as of March 31, 2020, according to a company spokesperson .

“It’s a group where I really believe we should be a world leader,” Graham said.

The Agency’s net assets increased 21.4% to C $ 497.2 billion ($ 410.4 billion) at the end of March 2021 from the previous year, thanks sharp increases in real energy and resource assets.

While most asset classes posted gains over the period, Canadian public stocks and real energy and resource assets were the most profitable, returning 40.8% and 45%. 8% respectively.

Real estate investments, which struggled during the coronavirus pandemic, lost 4.1% for the fund in the year after gaining 5.1% the year before while marketable government bonds lost 10.9% in 2021 against gains of 16.1% in 2020.

Graham was appointed to his new role in February after former CEO Mark Machin tendered his resignation following a trip to the United Arab Emirates where he received a COVID-19 vaccination. ($ 1 = 1.2115 Canadian dollars) (Reporting by Maiya Keidan; Editing by Alex Richardson, Estelle Shirbon and Marguerita Choy)