CDPQ Moves Toward Ridding Portfolio of Oil

By David G. Barry

Caisse de dépôt et placement du Québec (CDPQ
) has taken a step toward fulfilling one of its key 2022 goals: exiting from oil production.

Canada’s second-largest pension fund has sold all its shares in Corex Resources Ltd to Azimuth Capital Management, a private equity firm. Terms were not disclosed. Based in Calgary, Alberta, Corex is a junior oil and natural gas company. CDPQ backed Corex for 10 years, helping to grow its Manitoba operations.

CDPQ announced that it would exit oil production by the end of 2022 when it rolled out its new climate strategy last September. CDPQ at that time said its oil production investments accounted for 1% of its then-CA$390 billion in assets (US$304 billion), or roughly CA$3.9 billion. (US$3 billion).

A CDPQ spokesman said the plan is not providing a “comprehensive list” of companies it is planning to exit from, nor is it providing publicly a list of exits done to date.

The exit also is in line with another of CDPQ’s goals: reduce the carbon intensity of its portfolio by 60% by 2030. The plan also is focused on holding CA$54 billion in green assets by 2025 and creating a CA$10 billion transition envelope to decarbonize the main industrial carbon-emitting sectors.

CDPQ’s net assets as of December 31 stood at CA$419.8 billion (US$328.7 billion).