As CPPIB backslides on climate, other Canadian pension giants remain committed to net-zero
Seven of Canada’s largest pension funds remain committed to net-zero by 2050. What makes CPPIB different from other Canadian pension managers?
Last week, the Canada Pension Plan Investment Board (CPPIB) quietly abandoned its 2022 commitment to invest the Canada Pension Plan (CPP) in line with achieving net-zero emissions by 2050.
This unacceptable abdication of responsibility by CPPIB stands in stark contrast to other Canadian pension giants, six of which released annual reports this year that unambiguously confirmed that they remain committed to net-zero by 2050. Many of CPPIB’s largest pension peers in other countries also remain committed to net-zero. See below for extensive examples.
CPPIB tried to bury the news that it backtracked on net-zero. Even though CPPIB released its 146-page 2025 annual report, our national pension manager apparently thought it wasn’t important enough to include the news in the report’s climate update. Shift had to dig into an obscure FAQ section of CPPIB’s Approach to Sustainability webpage to find this short and nonsensical explanation:
CPPIB’s backslide on net-zero is shameful, and its rationale is puzzling. As an op-ed published in Canada’s National Observer this week asks:
“Does the (CPPIB) think the investment climate is going to become less risky as we move deeper into the climate crisis? Does it think abandoning already unambitious net-zero goals will have the effect of increasing market stability? Does it not realize this retreat from even modest carbon-neutral ambitions will likely have an unintended trickle-down effect on other Canadian pension funds? If the CPPIB is giving up, why should anyone else bother?”
Yet six other large Canadian pension managers with a combined $1.1 trillion in assets under management have already released annual reports in 2025 that unequivocally state they remain committed to net-zero. Like CPPIB, these pension managers manage complex, highly-diversified global portfolios. They are subject to the same “legal developments” and face the same “increasing pressure to adopt standardized emissions metrics and interim targets.”
These pension giants understand that climate risk is financial risk, and that their most fundamental purpose depends on averting dangerous levels of climate change. These pension funds also continue to have interim emissions intensity reduction targets on the way to net-zero along with other climate-related and transition targets.
Here’s a rundown of those pension managers that remain prudently committed to net-zero by 2050, in their own words:
“In 2023 we launched our Climate Action Plan (CAP) which outlines our approach to achieving our target of net zero carbon emissions in our portfolio and operations by 2050. We recognize the urgent, global challenge that climate change poses, the risk and opportunities to our investments and the role we can play at OMERS.”
Ontario Municipal Employees Retirement System2024 Annual Report, February 28, 2025
“OPTrust is also making great strides in its climate change strategy to achieve a net-zero portfolio by 2050.”
OPTrust2024 Funded Status Report, March 11, 2025
“In 2023, HOOPP published its Climate Change Strategy, which includes an objective to achieve net-zero emissions in our portfolio by 2050. Our plan to achieve net-zero portfolio emissions is a multi-decade goal. To achieve that long-term goal, we designed interim 2025 and 2030 targets that work in tandem, with each reinforcing the other.”
Healthcare of Ontario Pension Plan2024 Annual Report, March 12, 2025
“Ontario Teachers’ has a long-term objective of achieving net-zero emissions from our investment activities by 2050. In 2021, we set interim targets to reduce portfolio carbon emissions intensity by 45% by 2025 and two-thirds (67%) by 2030, compared to a 2019 baseline.”
Ontario Teachers’ Pension Plan2024 Annual Report, March 20, 2024
“These combined actions have enabled us to continue our efforts to decarbonize the portfolio. In 2024, we reduced our carbon intensity by 69% from 2017, surpassing our target of a 60% reduction by 2030, which is in line with our goal of a net-zero portfolio by 2050.”
Caisse de dépôt et placement du Québec2024 Sustainable Investing Report, April 8, 2025
“We have committed to a net zero portfolio by 2050 and have set two interim targets.”
Investment Management Corporation of Ontario2024 Annual Report, April 9, 2025
Similarly, CPPIB’s international peers, including some of the biggest pension funds in the world, have steadfastly remained committed to net-zero in 2050. Here’s a short list:
“By 2030, the CO2 emissions of all our investments must be halved compared to 2019. By 2050, we want an investment portfolio with net zero CO2 emissions.”
ABP (Netherlands)Climate Policy, accessed May 26, 2025
“AustralianSuper has made a commitment to achieve net zero carbon emissions by 2050 in the investment portfolio (based on scope 1 and scope 2 emissions of portfolio investments). The Intergovernmental Panel on Climate Change (IPCC) proposed that achieving net zero emissions by 2050 would be required to limit the average global temperature increase to 1.5 degrees by 2100 (which aligns with the more ambitious Paris Agreement temperature limit). Scenario modelling undertaken by the global central banks indicates that a net zero by 2050 scenario results in the lowest economic cost outcome in the long term. This is consistent with our objective of helping members achieve their best financial position in retirement.”
Australian Super (Australia)Climate Change, accessed May 26, 2025
“We’re committed to managing climate-related risks and leveraging climate-related investment opportunities to achieve our mission to support the retirement security of California’s educators. We’ll continue to make progress on our pledge to move the CalSTRS Investment Portfolio toward net zero emissions by 2050 or sooner.”
California State Teachers’ Retirement System (United States)Net Zero Portfolio Emissions Pledge Progress Report, January 2025
“NYC’s pension systems have achieved 37% reduction in greenhouse gas emissions, surpassing interim targets for goal of being net zero by 2040.”
New York City pensions system (United States)NYC Comptroller Lander & Pension Trustees Announce Significant Progress on Net Zero Plan, Despite Climate Retreats and Rollbacks by Other Investors, April 2, 2025
“Rather than waiting for policies to be debated, we’re taking the initiative to stop investing in fossil fuels and work towards net zero emissions by 2050, in line with the Paris Agreement. This means balancing how much greenhouse gas is added to the environment because of your pension against what’s taken away. By reducing emissions, we hope to help limit global warming.”
National Employee Savings Trust (United Kingdom)How we’re investing responsibly, accessed May 26, 2025
CPPIB was committed to net-zero by 2050 as recently as a few months ago. The pension manager’s Policy on Sustainable Investing, which was approved by CPPIB’s Board of Directors on February 11, 2025, stated on page 3:
“Our approach to climate change underlies our own commitment to achieve net zero, as set out at https://www.cppinvestments.com/sustainable-investing/net-zero/.”
But an updated version of the Policy on Sustainable Investing, marked as “REVISED May 22, 2025” and linked on CPPIB’s Approach to Sustainability webpage, omits the reference to net-zero. The link to a previous net-zero webpage on CPPIB’s website from the February 11th version of the Policy re-directs Canadians to a Climate Change webpage that doesn’t mention net-zero.
Tell CPPIB: Canadians deserve a pension plan that protects our future – not one that abandons it. Join the call for CPPIB to reinstate its net-zero commitment today.