A groundbreaking lawsuit has been filed against Canada’s largest pension fund manager, the Canada Pension Plan Investment Board (CPP Investments), for failing to properly assess and disclose the financial risks posed by climate change.
The case, brought to Ontario Superior Court by four young plaintiffs, accuses CPP Investments of neglecting its legal duty to protect pension contributions from unreasonable risks linked to climate change.
“It is really about financial risks of climate change,” says Karine Peloffy, a lawyer at Ecojustice, co-counsel on the case alongside Goldblatt Partners LLP. “It’s not about being nice, it’s not about politics, it's not about appearances. It’s about the actual legal obligation to manage the material risks of climate change.”
The lawsuit claims CPP Investments' underestimation and insufficient disclosure of climate impacts jeopardize the retirement security of young contributors, including the plaintiffs, who intend to retire around 2050. This year is significant as many organizations aim to achieve net-zero emissions by then, a target CPP Investments recently abandoned.
Author's summary: The landmark lawsuit against CPP Investments challenges institutional investors to uphold legal duties by transparently managing climate-related financial risks affecting future generations’ retirement security.