In September 2022, the Canada Pension Plan Investment Board (CPP Investments) and the international asset management group IKAV partnered to acquire Aera Energy LLC, a major energy producer in California. CPP Investments bought a 49% stake in Aera Energy from IKAV, an entity renowned for its expertise in renewables and managing U.S. conventional energy assets. Aera Energy, initially a joint venture between Shell and ExxonMobil, stands as California’s second-largest oil and gas producer, contributing to nearly 25% of the state’s production.

This collaboration aligns with the broader objective of addressing climate change challenges by innovating across the global economy. IKAV and CPP Investments plan to support Aera Energy’s transition towards sustainable energy, focusing on integrating renewable energy solutions with existing operations and repurposing legacy infrastructure for carbon capture and storage. The transaction underscores a shared commitment to balancing California’s energy demands with its climate goals, aiming for a sustainable transition to renewable energy.

The leadership of IKAV, CPP Investments, and Aera Energy expressed optimism about the joint ownership's potential to fulfill California's energy requirements while advancing the state's climate objectives. They highlighted the importance of innovative solutions in achieving a balanced and sustainable energy transition, indicating a strategic move towards decarbonization and long-term, risk-adjusted returns for investors.