Generation and CDPQ announce ESG partnership

The two companies will work together to invest in companies over a long-term time horizon

Generation Investment Management and Canadian investment group CDPQ have announced a partnership to deploy $3 billion of assets into sustainable investments with an eight to 15 year duration.

In a media announcement on Tuesday, the companies said they would be specifically targeting businesses with long-term growth prospects which benefit the environment, society and use technology to affect change.

The first announcement made under the partnership is in global fintech firm FNZ, which works with banks, insurers and asset managers to improve consumers’ financial positions. The companies have acquired a majority stake via their partnership, valuing the company at £1.65 billion.

David Blood, senior partner at Generation, said the tie-up between the businesses would allow them to invest for longer.

“For nearly 15 years, Generation has worked to prove the business case for long-term sustainable investing across both listed and private equity markets,” he said. “This partnership affords us the opportunity to deploy longer term capital, which truly embodies the concept of sustainable investing.”

Blood said that he hoped that this approach would catalyse a more sustainable form of investing in capital markets more broadly.

Michael Sabia, chief executive officer of CDPQ, added that the partnership was a logical one due to the like-minded approach of both organisations.

He added: “Sustainability begins with long-term involvement, which is why we made long-term investment the cornerstone of CDPQ-Generation. We both integrate ESG principles at the core of our investment strategies and believe they go hand-in-hand with attractive returns.

“We also have tremendous complementarity, as we bring together Generation’s world-class equity research team with CDPQ’s investment expertise and global network.”