7 November, 2025

One of Canada’s largest pension investment managers, CPP Investments, is being sued for allegedly failing to manage climate-related financial risks. To our knowledge, it marks the first legal case in Canada to challenge a financial institution on these specific legal grounds. 

Filed by Ecojustice on behalf of two beneficiaries, the case argues that CPP Investments’ continued exposure to fossil fuel assets contradicts its own climate commitments and exposes pension holders to material financial risk. What makes this case significant is its framing: it centres not on environmental harm, but on fiduciary duty and the financial consequences of climate risk. If successful, that distinction could set a precedent, not only in Canada but globally. 

It reflects a broader long-term shift in how climate risk is being understood. Increasingly, it’s a core financial issue, as well as a sustainability issue, with implications for governance, disclosure and long-term strategy. And as legal scrutiny intensifies so does the expectation on companies to treat climate risk as financial risk. 

This is something we’ve helped clients work through across finance, FMCG, fashion and tech. From identifying material exposures to aligning decision-making with climate scenarios, it’s a process that’s becoming central to how organisations build resilience and credibility. 

The CPP Investments case may be the first of its kind in Canada, but it won’t be the last. The legal landscape is shifting, and the cost of inaction is becoming harder to ignore. 

By Budd Nicholson