TORONTO – Canada’s largest pension fund is being sued by four young Canadians who claim that CPP Investments is failing to properly manage climate-related financial risk.
The four allege in a lawsuit filed Monday that the investment manager for the Canada Pension Plan is breaching its duty to invest in their best interest, and subjecting their contributions to undue risk of loss by its approach.
The lawsuit, filed with the support of Ecojustice and Goldblatt Partners LLP, claims CPP Investment is drastically underestimating the financial implications of climate change, as well as worsening its harms by continuing to invest in the expansion of fossil fuel production.
CPP Investments spokesman Michel Leduc says the fund is still working to assess the lawsuit, but that it remains steadfast on integrating climate-related considerations into its investment activity.
Leduc says CPP Investments has a rigorous approach to integrating climate risk as one of many material factors it considers as it looks to maximize long-term investment returns without undue risk of loss.
He also emphasized that an action against the fund’s efforts to maintain the sustainability of the Canada Pension Plan is an action against the retirement security of 22 million Canadians, and that the fund will do whatever is needed to uphold the interest of contributors.
The lawsuit aims to test whether the fund is indeed doing what’s needed to uphold those interests.
This report by The Canadian Press was first published Oct. 27, 2025.
