Young claimants take CPP to court over climate risks

Young Claimants Sue CPP Over Climate Risks

A groundbreaking lawsuit has been filed against the Canada Pension Plan Investment Board (CPP Investments), marking the first case where a Canadian investor is accused of downplaying and failing to disclose serious climate risks. This case could establish a significant precedent for investment funds' obligations regarding climate change.

Details of the Lawsuit

Earlier this week, four young individuals took CPP Investments to Ontario Superior Court. They claim the pension fund manager is violating its legal duty by exposing Canada Pension Plan contributions to excessive risks linked to climate change.

“It is really about financial risks of climate change,” said Karine Peloffy, a lawyer at Ecojustice, co-counsel on the case with 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.”

Risks to Retirement Prospects

The lawsuit contends that by underestimating and failing to disclose the dangerous impacts of climate change, CPP Investments jeopardizes the retirement security of young contributors, including the plaintiffs who expect to retire around 2050.

2050 is a common target year for many organizations to achieve net-zero emissions.
CPP Investments withdrew its 2050 net-zero commitment in May of the previous year.

Potential Implications

Legal experts suggest this case could influence how major investment funds approach climate risk management and transparency in Canada.

Author’s summary: Four young Canadians have sued the Canada Pension Plan Investment Board for mismanaging climate risks, potentially reshaping how large funds handle environmental responsibilities.

CBA National Magazine — 2025-10-31

Young Claimants Sue CPP Over Climate Risks

Details of the Lawsuit

Risks to Retirement Prospects

Potential Implications

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