Caisse de dépôt et placement du Québec (CDPQ), a global institutional investor, and S2G Ventures (S2G), a leading multi-stage investment firm, have announced the creation of a co-investment partnership where CDPQ will invest up to US$125 million over the next 3 years in ventures that aim to make the food and agriculture industry more sustainable and climate-friendly.
The co-investment agreement between CDPQ and S2G results from CDPQ’s partnership with CREO Family Office Syndicate (CREO), a New York City-based not-for-profit organization that aims to galvanize capital into low carbon solutions.
S2G was selected by CDPQ after a full market review of potential partners. By providing an opportunity to invest behind entrepreneurs that are developing concrete solutions to climate change, the agreement will further the two organizations’ shared core principles and objectives, including a long-term outlook and a commitment to sustainable investing.
“We are excited about this partnership with CDPQ and the potential to invest behind leading entrepreneurs in the food system,” said Sanjeev Krishnan, Managing Director and CIO of S2G. “CDPQ shares our long-term vision of combating climate change, and brings to the table tremendous experience investing in leading companies worldwide.”
“By enabling investments in ventures and growth equity companies involved in the production, supply chain and consumption stages, this partnership will help reduce the agri-food industry’s carbon footprint,” said Kim Thomassin, Executive Vice-President and Head of Investments in Québec and Stewardship Investing at CDPQ. “S2G is a leading investment firm in this sector and we are delighted to partner with them to support cutting-edge entrepreneurs who will make the food and agriculture industry more sustainable.”
“This agreement is part of a larger innovation platform we have implemented to leverage opportunities with strategic partners such as CREO, Family Offices, long term investors and industrial groups, in order to direct more capital towards innovative investments in sustainability initiatives,” said Mario Therrien, Head of Investment Funds and External Management at CDPQ.
Since 2017, CDPQ has committed to reducing its portfolio’s carbon footprint by 25% per dollar invested by 2025. By doing so, CDPQ became the first institutional investor in North America to set a greenhouse gas intensity reduction target covering all its asset classes. Climate is now factored into all its investment decisions, affording it an essential position to make its portfolio more sustainable. As at December 31, 2019, CDPQ’s portfolio of low-carbon assets was US$34 billion, up 95% from 2017.
S2G backs trailblazing entrepreneurs that are improving the overall health and sustainability of the food system. For the last six years S2G has invested behind the founders of successful food and agriculture companies from soil to shelf including Beyond Meat, sweetgreen, Apeel Sciences, Greenlight Biosciences, MycoTechnology and many others.
ABOUT CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC
Caisse de dépôt et placement du Québec (CDPQ) is a long-term institutional investor that manages funds primarily for public and parapublic pension and insurance plans. As at June 30, 2020, it held CA$333.0 billion in net assets. As one of Canada’s leading institutional fund managers, CDPQ invests globally in major financial markets, private equity, infrastructure, real estate and private debt. For more information, visit cdpq.com.
ABOUT S2G VENTURES
S2G Ventures is a multi-stage venture fund investing across the food, agriculture, oceans and seafood markets. The fund’s mission is to catalyze innovation to meet consumer demands for healthy and sustainable food systems. S2G has identified sectors across the food system that are ripe for change, and is building a multi-stage portfolio including seed, venture and growth stage investments. Core areas of interest for S2G are agriculture, oceans, ingredients, infrastructure and logistics, IT and hardware, food safety and technology, retail and restaurants, and consumer brands. For more information about S2G, visit www.s2gventures.com.
SOURCE Caisse de dépôt et placement du Québec