Canada’s $247bn OTPP seizes full control of GreenCollar in KKR deal
Canadian pension giant Ontario Teachers’ Pension Plan has confirmed it is freeing up capital to add Australian environmental markets platform GreenCollar to its sustainable investment portfolio.
Although financial details of the transaction have not been disclosed, Ontario Teachers’ did say it is acquiring GreenCollar by buying the shares of investment firm KKR and other shareholders.
GreenCollar is not a new investment for $247 billion Ontario Teachers: it made its first investment in March of last year, but following the latest transaction it has now seized full control.
The firm confirmed it is business as usual as GreenCollar CEO and co-founder James Schultz (pictured) continues to stay in his post and will remain a minority shareholder.
Ontario Teachers’ Natural Resources group, which is part of its Infrastructure and Natural Resources department, has significant experience investing in agriculture, aquaculture, timberland, and natural climate solutions, including in Australia where it has a large agriculture portfolio.
The pension fund is expected to play a pro-active role in the direction of GreenCollar. Chief investment officer Ziad Hindo, told Net Zero Investor recently that "one of the most important actions we can take as investors is exercising our voting rights to influence positive change. This is particularly true for topics related to effective boards and governance, which have a huge impact on the long-term performance and sustainability of businesses."
Elaborating on OTPP's long-term strategy, Hindo said: "We also have a plan to allocate around $5 billion to so-called high carbon transition assets, with a goal of using our capital and expertise to help select high emitting companies decarbonize faster."
"We are taking a multi-pronged approach. This includes increasing our exposure to green investments."
KKR first invested in GreenCollar in 2020 as part of its global impact strategy, which focuses on companies that contribute to measurable progress toward one or more of the United Nations Sustainable Development Goals (SDGs).
As a certified B corporation and provider of environmental initiatives that reduce the impact of climate change, GreenCollar’s core business directly contributes toward SDG 13 (Climate Action) and supports other sustainable goals, including SDG 15 (Life on Land) and SDG 14 (Life Below Water).
GreenCollar markets itself as the first global impact fund investment to implement a broad-scale employee ownership plan as “once the transaction has completed, all employees at GreenCollar will share in the proceeds from the sale under a program that aims to build stronger companies and drive greater financial inclusion through employee ownership and engagement,” Ontario Teachers’ said.
The transaction is expected to close in the fourth quarter of 2023, subject to regulatory approval.
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