S2G Ventures partners with CDPQ to invest in food and agriculture ventures

CANADA – S2G Ventures (S2G), a multi-stage venture fund investing in food and agriculture has joined forces with Caisse de dépôt et placement du Québec (CDPQ), an  institutional investor, to invest in ventures that aim to make the food and agriculture industry more sustainable.

CDPQ, a Québec-based institutional investor, says that it will invest up to US$125 million over the next three years under the new co-investment partnership. The co-investment agreement will focus on backing entrepreneurs that are developing concrete solutions to climate change.

“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.”

“We are excited about this partnership with CDPQ and the potential to invest behind leading entrepreneurs in the food system,”

Sanjeev Krishnan – managing director and CIO, S2G

Since 2017, CDPQ has committed to reducing its portfolio’s carbon footprint by 25% per dollar invested by 2025. The company claims that in doing so it has become the first institutional investor in North America to set a greenhouse gas intensity reduction target covering all its asset classes.

CDPQ says that climate is now factored into all of its investment decisions and that its portfolio of low-carbon assets was worth US$34 billion at the end of 2019, up 95% from 2017.

“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,” Kim Thomassin, executive vice president and head of investments in Québec and stewardship investing at CDPQ, said.

“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.”

Headquartered in Chicago, S2G Ventures invests in companies that are ‘improving the overall health and sustainability of the food system’. Beyond Meat, Apeel Sciences and MycoTechnology are all among the firms that it has backed.

S2G recently announced that it will invest up to US$100 million under a new strategy focused on firms promoting sustainability in the ocean and seafood supply chain. The company was reportedly selected by CDPQ after a full market review of potential partners.

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 one of Canada’s leading institutional fund managers, CDPQ invests globally in major financial markets, private equity, infrastructure, real estate and private debt.

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