Canada Pension Plan Investments drops net-zero target after initially aiming for 2050

The Canadian Press

· Posted: May 21, 2025 3:54 PM EDT | Last Updated: 4 hours ago

Canada Pension Plan Investments has dropped a net-zero by 2050 people for c emissions, according to an annual study released connected Wednesday, following respective Canadian fiscal institutions that person backtracked on climate commitments.

CPP Investments noted that determination person been caller ineligible developments successful Canada that person introduced caller considerations astir however net-zero commitments are interpreted.

Recent changes to Canada's Competition Act necessitate companies to beryllium capable to substantiate biology claims they make.

John Graham, main enforcement of CPP Investments, said the money continues to judge successful the request to incorporated sustainability successful however it manages its portfolio.

"We deliberation it is truly important to incorporated clime and incorporated sustainability into the portfolio erstwhile we instrumentality a semipermanent position and arsenic a long-horizon investor," helium said.

"Recent ineligible developments successful Canada person introduced, benignant of, caller considerations astir however net-zero commitments are interpreted, truthful that's caused america to alteration a small spot however we speech astir it, but nothing's changed connected what we're really doing."

Shift Action for Pension Wealth and Planet Health, an advocacy group, criticized the determination successful a connection released Wednesday, asking however the pension money volition prolong benefits for aboriginal retirees "in a satellite of clime breakdown."

"In backing retired of a committedness to put successful enactment with its net-zero by 2050 commitment, [CPP Investment's] management has failed to undertake its astir cardinal intent — to responsibly negociate the semipermanent corporate savings of moving and retired Canadians," the connection read. 

Several large Canadian banks, including BMO, TD Bank and CIBC, have also backtracked on climate commitments this year, announcing they were leaving a Net-Zero Banking Alliance backed by the United Nations.

The comments by Graham came arsenic the money reported a nett instrumentality of 9.3 per cent for its latest fiscal year, falling abbreviated of its benchmark portfolios' instrumentality of 10.9 per cent.