Young claimants take CPP to court over climate risks

Young Claimants Sue CPP over Climate Risks

This case represents the first time a Canadian investor has been sued for underestimating and failing to disclose dangerous climate impacts. Legal experts suggest it could establish a precedent for how investment funds address climate change.

Details of the Lawsuit

Earlier this week, four young individuals filed a lawsuit in Ontario Superior Court against the Canada Pension Plan Investment Board (CPP Investments). They allege that CPP Investments is breaching its legal duty by exposing pension contributions to excessive risk from 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.”

Impact on Retirement Prospects

The lawsuit claims that by underestimating and failing to disclose serious climate risks, CPP Investments is threatening the retirement security of young contributors, including the plaintiffs who plan to retire around 2050. This year is notably the target for many organizations aiming to reach net zero emissions.

However, CPP Investments withdrew its 2050 net-zero target last May.

Legal and Financial Implications

Author’s summary: This unprecedented lawsuit challenges CPP Investments for neglecting climate risks, potentially reshaping fiduciary duties around environmental impacts and protecting young investors' futures.

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

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