Young claimants take CPP to court over climate risks

Young Claimants Take CPP to Court Over Climate Risks

A groundbreaking lawsuit against Canada’s largest pension fund manager could establish a precedent for how major investment funds address climate-related financial risks, according to legal observers.

Earlier this week, four young Canadians filed a case in the Ontario Superior Court, claiming that the Canada Pension Plan Investment Board (CPP Investments) violated its fiduciary duty by exposing contributors’ funds to undue financial losses driven by climate change.

“It is really about financial risks of climate change,” said 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 plaintiffs argue that by underestimating and failing to disclose climate dangers, CPP Investments endangers the retirement security of younger contributors — including the claimants themselves, who plan to retire around 2050. That year coincides with many institutions’ net-zero commitments, though CPP Investments withdrew its own 2050 target last May.

Author’s Summary

The case challenges CPP Investments’ climate risk strategy, marking a potential turning point for financial accountability in Canada’s pension management.

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CBA National Magazine CBA National Magazine — 2025-10-31

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