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4mo ago

Canada Pension Plan Withdraws Net-Zero by 2050 Commitment

Citing legal uncertainty from anti-greenwashing laws, CPP shifts its climate strategy while emphasizing ongoing decarbonization efforts.

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FILE PHOTO: Wind turbines are seen at the Saint-Nazaire offshore wind farm, off the coast of the Guerande peninsula in western France, September 30, 2022. REUTERS/Stephane Mahe/File Photo
A motorist watches from a pullout on the Trans-Canada Highway as a wildfire burns on the side of a mountain in Lytton, B.C., Thursday, July 1, 2021. THE CANADIAN PRESS/Darryl Dyck
Bank buildings are photographed in Toronto's financial district on June 27, 2018. Canada Pension Plan Investments has dropped a net-zero by 2050 target for carbon emissions, according to an annual report released Wednesday, following several Canadian financial institutions that have backtracked on climate commitments.

Overview

  • The Canada Pension Plan Investment Board (CPP), managing $714.4 billion in assets, has formally abandoned its net-zero emissions by 2050 goal, announced in its 2025 annual report.
  • CPP attributed the decision to legal risks stemming from Canada’s 2024 Competition Act amendments, which include strict anti-greenwashing provisions requiring verifiable environmental claims.
  • Despite dropping the formal target, CPP reported a 41% reduction in the carbon footprint of its investment portfolio since 2020 and stated it remains committed to decarbonization.
  • Future progress on emissions reduction will depend on external factors such as government policies, technological advancements, and global reporting standards, according to CPP.
  • Climate advocacy group Shift Action for Pension Wealth & Planet Health criticized the move as a failure to prioritize long-term sustainability for Canadian retirees.