Young Claimants Take CPP to Court Over Climate Risks
A groundbreaking case in Ontario Superior Court marks the first time a Canadian investor has faced a lawsuit for underestimating and failing to disclose climate-related financial risks. The claim targets the Canada Pension Plan Investment Board (CPP Investments), the country’s largest pension fund manager.
Four young plaintiffs argue that CPP Investments has breached its legal duty by exposing their retirement savings to significant financial risks associated with climate change. Legal experts believe the case could set an important precedent for how investment funds handle environmental responsibilities.
“It is really about financial risks of climate change,” said Karine Peloffy, a lawyer with Ecojustice, which represents the plaintiffs together with Goldblatt Partners LLP. “It’s not about being nice, politics, or appearances. It’s about the actual legal obligation to manage the material risks of climate change.”
The lawsuit claims CPP Investments failed to properly evaluate and disclose the dangers of climate change, endangering the financial security of current and future contributors. The four young individuals involved expect to retire around 2050, the same year many institutions aim to reach net-zero emissions—though CPP Investments withdrew its 2050 goal last May.
Author’s Summary
This lawsuit could redefine how Canadian pension funds disclose and mitigate climate-related financial risks, setting a legal benchmark for future sustainable investment practices.