Canada Pension Plan Investments (CPP Investments) has decided to drop its goal of reaching net-zero carbon emissions by 2050. This change was shared in its annual report released on Wednesday. CPP Investments is one of several Canadian financial organizations that have recently stepped back from their climate promises.
The group said new legal changes in Canada have affected how net-zero targets are understood. These changes include updates to Canada’s Competition Act, which now require companies to prove any environmental claims they make.
John Graham, the CEO of CPP Investments, said that even though they’re changing how they talk about net-zero goals, they still care about sustainability and long-term climate planning.
“We still believe it’s important to include climate and sustainability in how we invest for the future,” said Graham.
However, not everyone agrees with the decision. A group called Shift Action for Pension Wealth and Planet Health criticized CPP Investments. They questioned how the fund plans to protect the future of retirees in a world facing serious climate problems. In their statement, the group said CPP Investments has failed to properly manage the long-term savings of Canadians.
Other large Canadian banks, like BMO, TD Bank, and CIBC, have also dropped out of climate commitments recently. They have left a United Nations-backed group called the Net-Zero Banking Alliance.
At the same time, CPP Investments reported a 9.3% return on its investments over the last year, which was lower than its benchmark goal of 10.9%.
