Canada’s top pension fund drops net-zero emissions target #CanadaFinance

TORONTO (Reuters) -Pension and climate activist group Shift on Wednesday criticized Canada’s top pension’s plan to abandon its net-zero greenhouse gas emissions by 2050 commitment.

The Canada Pension Plan Investment Board (CPP Investments), which manages C$714.4 billion ($516.93 billion) in assets, said it planned to abandon the commitment announced in February 2022 to make its operations and investment portfolio align with the goal.

Shift said the change, covered in the FAQ section of its website, was made on Wednesday but Reuters could not immediately verify when it was updated.

The action followed a broader re-evaluation of climate goals after several Canadian banks left the Net-Zero Banking Alliance earlier this year.

The plan said unspecified “recent legal developments in Canada” affected how it interpreted the net-zero commitment.

Shift denounced the move.

“Net-zero commitments are not optional,” Shift said in a statement. “In backing out of a promise to invest in line with its net-zero by 2050 commitment, CPPIB’s management has failed to undertake its most fundamental purpose – to responsibly manage the long-term collective savings of working and retired Canadians.”

CPP Investments did not immediately respond to requests for further comment.

($1 = 1.3820 Canadian dollars)

(Reporting by Maiya Keidan; Editing by Cynthia Osterman)