Particle.news
Download on the App Store

Young Canadians Sue CPP Investments Over Alleged Mismanagement of Climate Risk

The case tests whether the pension manager’s climate strategy meets its fiduciary duties to contributors.

Overview

  • Four Canadians filed the lawsuit in Ontario Superior Court with support from Ecojustice and Goldblatt Partners LLP.
  • The claim alleges CPP Investments underestimates climate-related financial risks and worsens them by backing fossil-fuel expansion, citing recent deals such as a reported $3-billion stake in Sempra Infrastructure.
  • Plaintiffs say the fund is breaching its duty to act in contributors’ best interests and exposing their savings to undue risk of loss.
  • CPP Investments spokesman Michel Leduc says the fund is assessing the case and maintains it rigorously integrates climate risk into investment decisions as a material factor.
  • Leduc warned the action could affect the retirement security of 22 million Canadians, noted the fund dropped its 2050 net-zero target earlier this year, and said the legal process will be addressed through the courts if necessary.