The powerful company managing the pension contributions of 20 million Canadians is intensifying its drive for sustainable energy opportunities by creating a new fund dedicated to that sector.

The Canada Pension Plan Investment Board (CPP Investments) has almost $500bn of funds under management and last night announced it had formed the Sustainable Energy Group (SEG) to take advantage of the $15tn set to be invested in the industry over the next 30 years.

The SEG is being formed by combining two existing funds worth $18bn – Energy & Resources (E&R) and Power & Renewables (P&R). It will be headed up by long-standing CPP Investments executive Bruce Hogg.

Deborah Orida, Senior Managing Director and Head of Real Assets, CPP Investments, said: “The energy sector is one of the most important enablers of the global economy and is composed of a wide spectrum of suppliers from conventional to renewable. Along our unique investment horizon, we see a dramatic opportunity to invest in, and support, the evolution and innovation occurring across the sector.

“CPP Investments is exceptionally well placed to be among the winners, in part through our partnership model alongside companies willing to grasp the future and forge ahead.”

The development reaffirms the firm’s commitment to renewable energy. It already holds a diversified portfolio primarily comprised of long-term tangible assets, including wind, solar and hydro, as well as conventional power, upstream oil and gas, energy midstream, carbon capture and Liquefied Natural Gas (LNG).